TV director faces charges for $11M fraud in crypto, luxury spree

The US Department of Justice (DOJ) has charged television director Carl Erik Rinsch with defrauding a major streaming company of $11 million.

In a March 18 statement, Acting US Attorney Matthew Podolsky said:

“Carl Erik Rinsch orchestrated a scheme to steal millions by soliciting a large investment from a video streaming service, claiming that money would be used to finance a television show that he was creating. But that was fiction. Rinsch instead allegedly used the funds on personal expenses and investments, including highly speculative options and cryptocurrency trading.”

If convicted, Rinsch faces severe legal penalties. The wire fraud charge carries a sentence of up to 20 years in prison, while the money laundering charge could add another 20 years.

Additionally, he faces five counts of illegal monetary transactions, each carrying a maximum sentence of 10 years.

Production funds misuse

Rinsch initially secured funding from a streaming platform—reportedly Netflix—to produce his television series, White Horse.

Between 2018 and 2019, the company paid him approximately $44 million to cover existing episodes and complete the project. However, between 2019 and 2020, he demanded an additional $11 million, claiming it was necessary to finish the series.

Instead of allocating the funds to production, Rinsch funneled the money into personal investments. He transferred the funds from his company account into a brokerage account, engaging in speculative securities trading.

His strategy proved disastrous, and over half of the funds were lost in under two months.

Despite these financial setbacks, Rinsch did not redirect the remaining funds toward White Horse. Instead, he spent the money on lavish purchases, including $1.7 million on credit card payments, $3.7 million on furniture and antiques, and $2.4 million on luxury cars.

He also allocated approximately $1 million to legal expenses, including lawsuits against the streaming company and divorce-related costs.

Additional extravagant purchases included high-end wristwatches, luxury bedding, and extended stays in five-star hotels.

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