Filmmaker Carl Erik Rinsch has been charged with fraud and money laundering, accused of misusing $11 million of Netflix’s funds intended for the production of his sci-fi series, Conquest.
The U.S. Department of Justice (DOJ) unsealed the indictment on March 18, stating that Rinsch could face up to 20 years in prison if convicted. Prosecutors allege that instead of completing the Netflix-backed project, he diverted the funds to risky stock market trades and cryptocurrency investments, later spending millions on luxury cars, high-end watches, and legal fees.
Netflix Gave Rinsch $44 Million for ‘Conquest’—But No Episodes Were Released
In 2020, Netflix financed Conquest—previously titled White Horse—providing Rinsch with a multi-million-dollar budget. However, investigators claim he gambled $10.5 million on speculative stock trades, losing over $5.5 million in the process.
Despite these losses, Rinsch profited from cryptocurrency investments and allegedly used the gains to purchase:
• Five Rolls-Royces
• A Ferrari
• Luxury watches worth hundreds of thousands of dollars
Additionally, $1.8 million of Netflix’s funds allegedly covered Rinsch’s personal credit card bills, while $1 million went toward legal fees in his lawsuit against Netflix.
Netflix Pulled the Plug on ‘Conquest’ Over Rinsch’s Erratic Behavior
Netflix canceled Conquest in early 2021, citing concerns about Rinsch’s behavior. Despite the streaming giant paying at least $44 million for the show, no episodes were ever delivered.
The case has now been assigned to New York federal Judge Jed Rakoff. Rinsch was arrested on March 18, and faces multiple felony charges:
• One count of wire fraud (maximum 20-year sentence)
• One count of money laundering (maximum 20-year sentence)
Filmmaker Faces Up to 40 Years in Prison if Convicted
The DOJ alleges that Rinsch intentionally deceived Netflix, misrepresenting how production funds were being spent. His lawyer has declined to comment on the charges.
If convicted, the 47 Ronin director could spend up to four decades behind bars for what prosecutors describe as one of the most extravagant cases of Hollywood financial fraud in recent years.
