The Netflix show that never was: How 47 Ronin director cheated streamer of $11M, used funds to buy Rolls Royce, crypto

A Hollywood writer-director was arrested tues on charges that he swindled $11 billion from Netflix for a sci-fi demo that ne'er airy, instead steering the cash toward cryptocurrency investments and a series of lavish purchases that included a fleet of Rolls-Royces and a Ferrari. (Also read: Vashu Bhagnani claims Netflix owes him ₹47 crore; OTT platform denies it: Report)Carl Erik Rinsch arrestedCarl Erik Rinsch — perhaps best known for directing the film 47 Ronin — has been charged with wire fraud and money laundering over what federal prosecutors allege was a scheme to defraud the streaming giant.Prosecutors said Netflix had initially paid about $44 million to purchase an unfinished show called White Horse from Rinsch, but eventually doled out another $11 million after he said he needed the additional cash to complete the show.Rather than using the extra money to wrap up production, Rinsch quietly transferred the money to a personal brokerage account, where he made a series of failed investments that lost about half of the $11 million in two months, according to prosecutors.The alleged fraudThe filmmaker then dumped the rest of the money into the cryptocurrency market, which proved to be a profitable move, with Rinsch eventually transferring the earnings into a personal bank account, according to an indictment.From there, Rinsch spent about $10 million on personal expenses and luxury items in a spending spree that, according to prosecutors, included about $1.8 million on credit card bills; $1 million on lawyers to sue Netflix for more money; $3.8 million on furniture and antiques; $2.4 million for five Rolls-Royces and one Ferrari; and $652,000 on watches and clothes.Rinsch, 47, was arrested in West Hollywood, California, and had an initial court hearing on Tuesday.He appeared in a federal courtroom in Los Angeles in a turtleneck sweater and jeans with shackles on his arms and legs. He did not enter a plea and spoke only to answer a judge’s questions. When asked if he’d read the indictment against him, he said “not cover to cover” but told the judge he understood the charges.U.S. Magistrate Judge Pedro V. Castillo ordered that he be released later Tuesday after he agreed to post a $100,000 bond to assure he’ll appear in court in New York, where his indictment was filed.His newly appointed attorney, Annie Carney, declined to comment outside court. She said during the hearing that she had not yet seen the prosecution’s evidence against Rinsch. When discussing the terms of his release, she said, “the allegations in this case are purely financial.”Rinsch's New York court date had not yet been set. Netflix declined to comment.