Hollywood filmmaker allegedly stole millions from Netflix to fund lavish lifestyle

Big news out of Hollywood. Director Carl Rinsch, known for his work, is in hot water. Really hot water. He was arrested in West Hollywood on some serious charges.

Wire fraud. Money laundering. We’re talking about allegations of stealing millions from Netflix.

The “Conquest” Debacle

Netflix, referred to in court documents as “Streaming Company-1,” gave Rinsch a huge chunk of change between 2018 and 2020. The goal? A sci-fi series called “Conquest. ”

But here’s the alleged twist. Instead of making the show, prosecutors say Rinsch used the money for… well, himself.

What the Feds Are Saying

Acting U. S. Attorney Matthew Podolsky didn’t mince words. He claims Rinsch ran a scheme, tricking Netflix into a massive investment. The promise? A TV show. The reality? According to the DOJ, a personal piggy bank.

Podolsky alleges the money went to personal expenses and risky investments. Think speculative options and cryptocurrency trading.

The Luxury Life

Reports say Netflix shelled out $44 million between 2018 and 2019. Then, another $11 million in 2020. That’s when things supposedly went off the rails.

The DOJ claims Rinsch splurged on luxury items. Get this:

• Over $2. 4 million on five Rolls-Royces and a Ferrari.
• Around $652,000 on watches and clothing.

Talk about living large. But at whose expense?

Netflix Pulls the Plug

In 2021, Netflix reportedly shut down production. Why? Rinsch’s behavior allegedly became “erratic. ”

The New York Times reported some wild claims. Texts and emails to Netflix execs allegedly included Rinsch claiming he’d discovered the secret to COVID-19 transmission. And he apparently told his wife he could predict earthquakes and lightning strikes. Yikes.

The bottom line? No show. And Netflix reportedly wrote off a staggering $55 million.

Facing the Music

The DOJ’s indictment lays out the potential penalties:

• Wire fraud: Up to 20 years in prison.
• Money laundering: Another potential 20 years.
• Engaging in unlawful monetary transactions: Up to 10 years per count.

That’s a lot of time. FBI Assistant Director Leslie Backschies says they’ll keep pursuing those who defraud businesses. It seems this Hollywood story is far from over.