Director of 47 Ronin Accused of Embezzling $11m from Netflix for Cryptocurrency Purchases

The director of the film 47 Ronin, Carl Erik Rinsch, has been accused of defrauding Netflix to purchase cryptocurrencies and stocks.

Rinsch, a Hollywood director and screenwriter, was taken into custody and indicted on fraud charges related to an $11 million agreement with Netflix for a science fiction TV series titled "White Horse."

According to the seven-count indictment that was recently unsealed, Rinsch secured a $44 million investment package in 2018 to finance the production of the show. Between 2019 and 2020, he obtained an additional $11 million in funding, which was transferred to a company that he completely controlled.

Instead of using the funds for White Horse, Rinsch allegedly transferred the $11 million through a network of accounts and eventually deposited the funds into his personal brokerage account.

The indictment, which was announced by acting U.S. Attorney for the Southern District of New York Matthew Podolsky and Leslie Backschies, assistant director of the FBI's New York Field Office, alleges that Rinsch illegally used the funds to trade cryptocurrencies and stocks.

Within two months of his first trades, Rinsch had allegedly lost over half of the capital. Authorities also allege that he spent approximately $5.3 million suing Netflix for cash, paying off credit card bills, and purchasing one Ferrari sports car and five Rolls-Royces.

Despite his initial losses from crypto trading, Rinsch allegedly reinvested in digital assets. According to the charges, he made $27 million from a $4 million investment into Dogecoin (DOGE). The funds were sent to a Kraken account through a Schwab Bank deposit, as reported by The New York Times.

Rinsch, now 47, faces up to 20 years in prison for one count of wire fraud alone. Other charges, including money laundering and unlawful activity, could each result in sentences of 10 to 20 years if the maximum penalties are imposed by a Los Angeles Court.

A court date has not been scheduled yet. Rinsch was released on a $100,000 bail bond by order of U.S. Magistrate Judge Pedro V. Castillo.