Why was director Carl Erik Rinsch convicted on charges of wire fraud and money laundering? Details explored

Hollywood director Carl Erik Rinsch is now facing the consequences of a high-profile financial scandal after a federal jury concluded he diverted $11 million in Netflix production money to bankroll his own luxury lifestyle. On Thursday, December 11, prosecutors from the Southern District of New York announced Rinsch was convicted for running a plan that twisted funding set aside to complete the sci-fi show White Horse.

Filmmaker Carl Erik Rinsch convicted for squandering $11M meant for Netflix's White Horse

Filmmaker Carl Erik Rinsch, known for directing the 2013 Keanu Reeves movie 47 Ronin, was convicted on several federal counts. Once it came out, he blew through $11 million meant for his Netflix-supported project White Horse.

From 2018 to 2019, filmmaker Rinsch got about $44 million from Streaming Company-1 to back his unfinished sci-fi project White Horse - money meant for episodes already made, but also promises of future ones. By late 2019 and just after New Year’s 2020, he asked for extra cash; so the firm sent another $11 million in March 2020 to a company tied to him, expecting those dollars to go straight toward wrapping up production.

Yet almost immediately afterward, he shifted that sum across several banks before pooling it into a private investment account where wild bets were placed - and blown fast, wiping out more than half that $11 million inside eight weeks flat. 

Rather than bankroll the series, Carl Erik Rinsch allegedly tossed millions into luxury habits and risky bets - like slapping down at least $1.7 million on credit card debt, shelling out over $3.3 million on home decor, vintage items, plus fancy beds, dropping around $387,000 on a high-end Swiss watches, and plowing more than $2.4 million into five Rolls Royces alongside a cherry-red Ferrari - all while messing around with crypto trades and stock plays, as reported by the officials.

In a statement release United States Attorney's Office Southern District of New York announced:

"Even after losing most of the $11 million, RINSCH still did not spend the remaining funds he had stolen on White Horse.  Instead, he used the money to speculate on cryptocurrency, and on personal expenses and luxury items, including at least $1.7 million on credit card bills; at least $3.3 million on furniture, antiques, and mattresses; at least $387,000 on a Swiss watch; and at least $2.4 million on five Rolls Royces and a red Ferrari."

Carl Erik Rinsch has now been ruled guilty on one charge of wire fraud and another count of money laundering, both open-ended with a possible 20-year sentence; on top of that come five extra counts linked to using illicit profits in money moves, each facing up to a decade behind bars. Federal prosecutor Jay Clayton stressed this outcome shows how seriously officials chase stolen investor dollars and make sure offenders face consequences. 

In a statement, U.S. Attorney Jay Clayton said:

"Carl Erik Rinsch took $11 million meant for a TV show and gambled it on speculative stock options and crypto transactions. Today's conviction shows that when someone steals from investors, we will follow the money and hold them accountable."

Though Carl Rinsch originally inked a deal with Netflix, paying him per finished episode and providing finishing funds, investigators claim that the dough never hit production - it went straight into his pocket instead.

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