Charges Against Television Director Carl Erik Rinsch
The US Department of Justice (DOJ) has recently charged television director Carl Erik Rinsch with defrauding a major streaming company of $11 million. This fraudulent scheme has led to severe legal consequences for Rinsch.
Statement from Acting US Attorney Matthew Podolsky
In a statement released on March 18, Acting US Attorney Matthew Podolsky highlighted the details of the case. He stated that Rinsch orchestrated a scheme to steal millions by falsely claiming to use the investment from a video streaming service to finance a television show. In reality, Rinsch diverted the funds towards personal expenses and risky investments, including cryptocurrency trading.
Legal Penalties Faced by Rinsch
If convicted, Rinsch faces significant legal penalties. The wire fraud charge alone could lead to a maximum sentence of up to 20 years in prison. Additionally, the money laundering charge could add another 20 years to his sentence. Furthermore, Rinsch is also facing five counts of illegal monetary transactions, each carrying a possible sentence of 10 years.
Production Funds Misuse
Rinsch initially secured funding from a streaming platform, such as Netflix, to produce his television series, “White Horse.” The company paid him approximately $44 million between 2018 and 2019 to cover existing episodes and complete the project. However, between 2019 and 2020, Rinsch demanded an additional $11 million, claiming it was necessary to finish the series.
Instead of utilizing the funds for production purposes, Rinsch diverted the money into personal investments. He transferred the funds from his company account to a brokerage account, engaging in speculative securities trading. Unfortunately, this strategy resulted in significant losses, with over half of the funds disappearing within two months.
Despite facing financial setbacks, Rinsch did not redirect the remaining funds towards “White Horse.” Instead, he indulged in extravagant spending, including $1.7 million on credit card payments, $3.7 million on furniture and antiques, and $2.4 million on luxury cars. Additionally, he allocated around $1 million to legal expenses, including lawsuits against the streaming company and divorce-related costs.
Further lavish purchases included high-end wristwatches, luxury bedding, and extended stays in five-star hotels.
