Carl Erik Rinsch Accused of Misusing Funds Meant for Sci-Fi Series “Conquest”
U.S. federal prosecutors have charged Carl Erik Rinsch, a filmmaker, with fraud and money laundering for allegedly misusing $11 million provided by Netflix to fund a science fiction television series. Instead of using the money for production costs, authorities claim he spent it on high-risk stock trades, cryptocurrency speculation, luxury goods, and personal expenses.
The Department of Justice (DOJ) announced the charges on March 18, following an indictment unsealed in a Manhattan federal court. If convicted, Rinsch faces a potential sentence of more than 20 years in prison.
Funds Intended for TV Production Used for High-Risk Investments
According to prosecutors, Netflix—though not explicitly named in the indictment—provided Rinsch with $11 million in March 2020 to cover costs such as storyboarding, actor payments, and post-production work for his sci-fi series “White Horse,” later renamed “Conquest.”
However, instead of funding the show, Rinsch reportedly transferred approximately $10.5 million into a brokerage account where he made extremely risky trades, including call options on a biopharmaceutical company, which resulted in a loss of over $5.5 million.
Despite hemorrhaging funds, Rinsch continued reassuring Netflix that the project was progressing well, prosecutors said.
Cryptocurrency Speculation Leads to Lavish Spending
Although his stock investments resulted in major losses, Rinsch was more successful in crypto trading. In February 2021, he reportedly made millions trading cryptocurrencies, which he then used to fund a luxurious lifestyle.
According to the indictment, Rinsch spent nearly $3.8 million on furniture and antiques, as well as purchasing five Rolls-Royces, a Ferrari, luxury watches, and designer clothing worth more than $3 million.
Netflix Had Previously Cut Ties with Rinsch
While the DOJ did not explicitly name Netflix in its indictment, The New York Times reported in November 2023 that Netflix had previously engaged in a financial dispute with Rinsch over Conquest.
The streaming giant ultimately canceled the project in early 2021, citing Rinsch’s erratic behavior as a key reason for the decision. Reports indicate that Netflix had paid Rinsch $55 million, though prosecutors claim he only received $44 million.
Legal and Financial Troubles Escalate
In addition to lavish spending, prosecutors allege that Rinsch used nearly $1.8 million to pay off credit card debts and $1 million in legal fees—which he reportedly spent suing Netflix for additional funds and covering costs related to his divorce.
The filmmaker now faces one count of wire fraud, one count of money laundering, and five counts of engaging in monetary transactions with unlawfully obtained funds. The fraud and money laundering charges each carry a maximum sentence of 20 years, while each of the monetary transaction charges carries a maximum sentence of 10 years.
Case Assigned to Federal Judge, Legal Team Declines to Comment
Rinsch was arrested on March 18, and his case has been assigned to Judge Jed Rakoff in New York federal court.
When asked for a statement, Rinsch’s attorney, Annie Carney, declined to comment.
As the legal proceedings unfold, this case highlights growing concerns over financial mismanagement in the entertainment industry, as well as the risks associated with using corporate funds for high-risk speculative investments like crypto and stocks.
