Carl Erik Rinsch, a Los Angeles-based writer and director known for helming the film “47 Ronin,” was arrested in West Hollywood on Tuesday. Reportedly, the Hollywood director faces charges of fraud and money laundering in connection with an $11 million Netflix scam.
In a surprising twist, it was revealed that Rinsch lost half of the funds through failed securities and crypto trading within a two-month period. Let’s explore the details of his arrest, allegations, and the crypto involvement.
Hollywood Director Arrested for Netflix Money Laundering
According to recent reports, Hollywood Director Carl Erik Rinsch has been arrested and charged with fraud and money laundering. Director Rinsch is accused of defrauding Netflix of $11 million. Director Rinsch misused the funds intended for a sci-fi series, instead investing in cryptocurrencies and buying luxury items, including multiple Rolls-Royces and a Ferrari.
Notably, Matthew Podolsky, the Acting US Attorney for the Southern District of New York, and Leslie Backschies, Assistant Director in Charge of the FBI’s New York Field Office, said on Tuesday that the director stole $11 million from Netflix for a science fiction show called “White Horse.” The director is now charged with seven separate counts of wire fraud and money laundering. If convicted, he faces a maximum prison sentence of 90 years.
Director Rinsch Loses Laundered Funds in Crypto
According to an indictment filed on Tuesday, Director Rinsch initially received $44 million from Netflix for the series. Soon, he took another $11 million claiming that he needed additional funds for the show.
Instead of using the funds for White Horse, the director sent the money to a personal brokerage account. Subsequently, he made a series of failed investments in securities and crypto, losing half of the $11 million funds.
The prosecutors shared a detailed account of the Hollywood director’s further expenditure. He spent about $10 million on personal needs and luxury items. This included $1.8 million on credit card bills, $1 million on legal fees to dispute Netflix’s payment, $3.8 million on furniture and antiques, $2.4 million on six luxury vehicles, including five Rolls-Royces and one Ferrari, and $652,000 on watches and clothing.
Interestingly, this update comes amid increasing crypto scams and thefts. Recently, exchange Deribit warned against the growing crypto job scams where fraudsters lure candidates, offering lucrative opportunities.
Crypto Frauds and Scams Rise
Director Rinsch’s Netflix scam is just a single incident of the increasing scams and hacks. Especially, crypto-related scams have shown major growth over the past few years. Since 2011, scammers and money launderers have reportedly stolen over $80.8 billion in funds from cryptocurrency investors.
The case also sheds light on the widespread issue of individuals losing millions of dollars in cryptocurrency investments. More than thousands of such instances are reported. This underscores the unpredictable nature of cryptocurrencies and the significant risks associated with crypto investments, where market volatility and scams can result in substantial financial losses. For instance, a crypto trader lost $24 million while swapping the TRUMP meme coin for the USDC stablecoin.
Nynu V Jamal
Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
