NEW YORK (AP) — A Hollywood writer-director was arrested Tuesday on charges that he swindled $11 million from Netflix for a sci-fi show that never aired, instead steering the cash toward cryptocurrency investments and a series of lavish purchases that included a fleet of Rolls-Royces and a Ferrari.
Carl 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 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.
Director Carl Rinsch poses for photographers during a news conference to promote his 3-D film "47 RONIN" in Tokyo, Japan, Nov. 18, 2013. (AP Photo/Shuji Kajiyama, file)
FILE- In this Nov. 4, 2017, file photo, the logo of entertainment company Netflix is pictured in Paris. (AP Photo/Christophe Ena, File)
COSTA NAVARINO, Greece (AP) — Kirsty Coventry has been elected president of the International Olympic Committee and become the first woman and first African to get perhaps the biggest job in global sports.
The Zimbabwe sports minister and two-time Olympic swimming gold medalist got a stunning first-round win in the seven-candidate contest after voting by nearly 100 of her colleagues in the IOC membership on Thursday.
She gets an eight-year mandate into 2033.
It was the most open and hard-to-call IOC presidential election in decades with no clear front-runner before the vote. Many predicted an absolute majority could take several rounds of votes to secure.
Coventry’s win also was a victory for outgoing IOC president Thomas Bach, who has long been seen as promoting her as his successor. He did not use his right to vote.
“I will make all of you very, very proud and hopefully extremely confident in the decision you have taken,” Coventry said in her acceptance speech. “Now we have got some work together.”
Walking to the podium, she was congratulated and kissed on both cheeks by Juan Antonio Samaranch, who was her expected closest rival in the vote.
Also in the race were four presidents of sports governing bodies: Track and field's Sebastian Coe, skiing's Johan Eliasch, cycling’s David Lappartient, and gymnastics' Morinari Watanabe. Also contending was Prince Feisal al Hussein of Jordan.
Coventry will formally replace her mentor Bach on June 23 — officially Olympic Day — as the 10th IOC president in its 131-year history. Bach reached the maximum 12 years in office.
Key challenges for the 41-year-old Coventry will be steering the Olympic movement through political and sporting issues toward the 2028 Summer Games in Los Angeles, including engaging in diplomacy with U.S. President Donald Trump.
Coventry’s IOC will also need to find a host for the 2036 Summer Games which could go to India or the Middle East.
AP Olympics at https://apnews.com/hub/2024-paris-olympic-games
IOC President Thomas Bach, right, greets Kirsty Coventry after she was announced as the new IOC President at the International Olympic Committee 144th session in Costa Navarino, western Greece, Thursday, March 20, 2025. (AP Photo/Thanassis Stavrakis)
IOC President Thomas Bach holds up the name of Kirsty Coventry as she is announced as the new IOC President at the International Olympic Committee 144th session in Costa Navarino, western Greece, Thursday, March 20, 2025. (AP Photo/Thanassis Stavrakis)
Kirsty Coventry gestures as she speaks after she was announced as the new IOC President at the International Olympic Committee 144th session in Costa Navarino, western Greece, Thursday, March 20, 2025. (AP Photo/Thanassis Stavrakis)
Reynold Hoover, CEO of the 2028 Los Angeles Olympics organizing committee, speaks during the 144th International Olympic Committee session, which will elect the new IOC President, in Costa Navarino, western Greece, Thursday, March 20, 2025. (AP Photo/Thanassis Stavrakis)
Casey Wasserman, chairman of the 2028 Los Angeles Olympics organizing committee, speaks during the 144th International Olympic Committee session, which will elect the new IOC President, in Costa Navarino, western Greece, Thursday, March 20, 2025. (AP Photo/Thanassis Stavrakis)
FIFA President Gianni Infantino arrives for the 144th International Olympic Committee session, which will elect the new IOC President, in Costa Navarino, western Greece, Thursday, March 20, 2025. (AP Photo/Thanassis Stavrakis)
Candidate to the presidency of the International Olympic Committee Sebastian Coe, left, arrives for the 144th session, which will elect the new IOC President, in Costa Navarino, western Greece, Thursday, March 20, 2025. (AP Photo/Thanassis Stavrakis)
Candidate to the presidency of the International Olympic Committee (IOC) Kirsty Coventry arrives for the 144th session, which will elect the new IOC President, in Costa Navarino, western Greece, Thursday, March 20, 2025. (AP Photo/Thanassis Stavrakis)
Candidate to the presidency of the International Olympic Committee Juan Antonio Samaranch arrives for the 144th session, which will elect the new IOC President, in Costa Navarino, western Greece, Thursday, March 20, 2025. (AP Photo/Thanassis Stavrakis)
Milano Cortina 2026 Foundation President Giovanni Malago speaks during the 144th International Olympic Committee session, which will elect the new IOC President, in Costa Navarino, western Greece, Thursday, March 20, 2025. (AP Photo/Thanassis Stavrakis)
Milano Cortina 2026 Foundation President Giovanni Malago speaks during the 144th International Olympic Committee session, which will elect the new IOC President, in Costa Navarino, western Greece, Thursday, March 20, 2025. (AP Photo/Thanassis Stavrakis)
Members of the organizing committee Milano Cortina 2026 attend the 144th International Olympic Committee session, which will elect the new IOC President, in Costa Navarino, western Greece, Thursday, March 20, 2025. (AP Photo/Thanassis Stavrakis)
IOC President Thomas Bach, foreground, smiles as candidate to the presidency of the International Olympic Committee Juan Antonio Samaranch stands in the background during the 144th session which will elect the new IOC President, in Costa Navarino, western Greece, Wednesday, March 19, 2025. (AP Photo/Thanassis Stavrakis)
International Olympic Committee president Thomas Bach, right, leads over the 144th session which will elect the new IOC President, in Costa Navarino, western Greece, Wednesday, March 19, 2025. (AP Photo/Thanassis Stavrakis)
FILE - This combo of Jan. 30, 2025, file photos, shows the seven candidates in the International Olympic Committee presidential election, from top row from left, Sebastian Coe, Kirsty Coventry, Johan Eliasch, and Prince Feisal al Hussein, bottom row from left, David Lappartient, Juan Antonio Samaranch and Morinari Watanabe. (Fabrice Coffrini/Pool Photo via AP, File)
