The world of Hollywood was shaken recently with the arrest of film director Carl Erik Rinsch, known for his work on the movie “47 Ronin”, on serious charges of fraud and money laundering. Rinsch allegedly misappropriated $11 million meant for a Netflix project that never saw the light of day, using the funds for personal investments in cryptocurrencies and luxury goods instead.
Some of the key points in this case include:
- Rinsch’s arrest and charges of fund mismanagement, which could potentially lead to 90 years in prison if convicted.
- The alleged use of the $11 million for crypto investments, including Dogecoin, and the purchase of luxury items.
- The reported theft from Netflix to invest in cryptocurrencies.
- Rinsch’s potential sentence, which could be up to 90 years in prison if found guilty on all charges.
The story began when Rinsch, a director and writer, was entrusted with funds for the production of a TV show titled “White Horse”. However, instead of using the money for its intended purpose, Rinsch allegedly diverted it towards personal investments in cryptocurrencies and luxury goods, including five Rolls-Royces, a Ferrari, high-end watches, and even two mattresses valued at nearly $638,000. Furthermore, he spent significant amounts on high-end hotel stays and personal linen items.
According to the prosecution, Rinsch had reached an agreement with the streaming company, believed to be Netflix, in 2018 for a total of $44 million to cover existing episodes of “White Horse” and the financing needed to complete the series. However, between late 2019 and early 2020, Rinsch requested an additional $11 million to finish the program, which was agreed upon and transferred to a company controlled by him.
The US Attorney’s Office alleges that Rinsch orchestrated a plan to steal millions by requesting a large investment from a video streaming service, claiming the money would be used to fund a TV show he was creating. However, this was reportedly fiction. Instead, Rinsch allegedly used the funds for personal expenses and investments, including highly speculative and cryptocurrency trading.
Rinsch’s foray into cryptocurrency trading was marked by significant losses initially, with over half of the funds lost in a failed trading period of less than two months. Nevertheless, he reportedly persisted, eventually finding success in his crypto ventures. Notably, it’s been reported that Rinsch converted Dogecoin holdings valued at $4 million into $27 million by May 2021, a significant turnaround in his crypto trading fortunes.
The case against Rinsch is a stark reminder of the vigilance required in the fight against fraud and the consequences of deceiving and stealing from others. As the US Attorney Matthew Podolsky stated, “The arrest of Rinsch is a reminder that this office and our partners in the FBI remain vigilant in the fight against fraud and will bring those who deceive and steal to justice.”
Rinsch, 47, could face up to 90 years in prison if convicted on all charges, which include bank fraud and money laundering. Each violation adds significant weight to this turbulent tale of cryptocurrency malfeasance in the backdrop of Hollywood’s lucrative entertainment world.
In his initial hearing in a federal court in Los Angeles, Rinsch was released on a $100,000 bond to ensure his appearance in court in New York, where the charges were filed. A date for the hearing in New York has yet to be set.
This saga serves as a cautionary tale about the high risks associated with cryptocurrency investments and the importance of due diligence and adherence to legal and ethical standards, even in the glamorous world of Hollywood.