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Hollywood director Carl Erik Rinsch has been convicted in federal court in Manhattan for defrauding Netflix of $11 million, funds that were originally allocated to complete a science-fiction television series that was never finished.
A federal jury found the 48-year-old filmmaker guilty on multiple charges, including wire fraud and money laundering, after prosecutors demonstrated that Rinsch diverted production funds for personal use instead of completing the project.
From Sci-Fi Ambitions to Financial Fraud
The project, originally titled “White Horse” and later renamed “Conquest,” had received approximately $44 million in total funding. Rinsch had initially produced six short episodes with support from high-profile mentor Keanu Reeves before pitching the series to major studios.
Between late 2019 and early 2020, Rinsch requested an additional $11 million from Netflix, claiming the funds were necessary to complete production. Netflix approved the request, believing the money would be used strictly for filming and post-production.
However, according to federal prosecutors, Rinsch transferred the entire amount into personal bank accounts, immediately violating the terms of the agreement.
Risky Trades, Crypto Bets, and Dogecoin Profits
Court filings revealed that Rinsch lost nearly half of the $11 million through high-risk stock options trading shortly after receiving the funds. Instead of halting his activities, he allegedly escalated his speculative behavior.
A portion of the remaining funds was used for cryptocurrency investments, including Dogecoin (DOGE). Previous reports indicated that Rinsch later claimed to have made as much as $27 million in profits from Dogecoin trading—though prosecutors emphasized that these gains did not excuse the original misuse of Netflix’s money.
Lavish Lifestyle Funded by Studio Money
Beyond trading losses and crypto speculation, Rinsch used significant sums to finance an extravagant lifestyle. Court documents show he purchased:
Five Rolls-Royce vehicles
One Ferrari
Multiple luxury watches and designer clothing
High-end mattresses, bedding, and furnishings
Stays at five-star hotels in California and Spain
He also used approximately $1.8 million to pay off personal credit card debt, money that Netflix believed was being spent on production costs.
Arrest, Trial, and Legal Arguments
Rinsch was arrested in March in West Hollywood, California. During the trial, he argued that the dispute was purely contractual, claiming the money represented reimbursement for work already completed.
The jury rejected this defense after a week-long trial overseen by U.S. District Judge Jed S. Rakoff.
Jay Clayton, U.S. Attorney for the Southern District of New York, emphasized the seriousness of the case, stating:
> “Carl Erik Rinsch took $11 million intended for a television series and gambled it on speculative stock options and cryptocurrency trades. Today’s verdict sends a clear message: those who misappropriate investor or corporate funds will be traced, prosecuted, and held accountable.”
Potential Sentence and Broader Implications
Rinsch now faces charges carrying a maximum potential sentence of up to 90 years in prison, though legal experts expect the final sentence to be significantly lower under federal sentencing guidelines.
He is scheduled to be sentenced on April 17, 2026.
The case highlights growing scrutiny over how large entertainment budgets are managed, as well as the increasing intersection between crypto speculation, celebrity figures, and financial crime. It also serves as a cautionary tale about the risks of unchecked access to capital in both Hollywood and digital asset markets.
Final Thoughts
This conviction underscores that no industry—Hollywood included—is immune from financial accountability. As crypto adoption continues to expand, regulators and prosecutors are making it clear that misuse of funds, regardless of the asset class involved, will be aggressively pursued.
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