A Hollywood writer was arrested on Tuesday for charges that he had cheated $ 11 million From Netflix Instead, for a science fiction show that was never broadcast, the money for cryptocurrency investments and a number of lush purchases that included a fleet of Rolls-Royces and a Ferrari.
Carl Erik Rinsch – perhaps known for the direction of the film “47 Ronin” – was charged with wire fraud and money laundering about what the public prosecutor claims to be a program to cheat streaming giant.
The prosecutors said Netflix Initially, around 44 million US dollars had paid for the purchase of an unfinished show called “White Horse” from Rinsch, but finally distributed another 11 million US dollars after saying that he needed the additional money to complete the show.
Instead of using the additional money for production, Rinsch transferred the money to a personal broker account, where, according to prosecutors, he made a number of failed investments that lost about half of the 11 million US dollars in two months.
The filmmaker then moved the rest of the money into the cryptocurrency market, which proved to be a profitable step, with Rinsch transferring the income to a personal bank account, according to an indictment.
From there, Rinsch issued about 10 million US dollars for personal expenses and luxury objects in an output stroll, which, according to the public prosecutor, contained around 1.8 million dollars for credit card bills. 1 million US dollars for lawyers to sue Netflix for more money; 3.8 million US dollars for furniture and antiques; 2.4 million US dollars for five Rolls-Royces and a Ferrari; and 652,000 US dollars for watches and clothing.
The 47 -year -old Rinsch was arrested in West Hollywood, California, and had a first trial on Tuesday.
He appeared in a federal court in Los Angeles in a turtleneck sweater and jeans with bonds on arms and legs. He did not enter the plea and only spoke to answer the questions of a judge. When asked whether he had read the indictment against him, he “did not cover”, but told the judge that he understood the indictment.
The US judge Pedro V. Castillo ordered that he was released later on Tuesday after he had agreed to publish a bond of $ 100,000 in order to assure him that he will be released in New York, where his indictment was submitted.
His new lawyer Annie Carney refused to comment outside of the court. During the hearing, she said that she had never seen the public prosecutor’s evidence against Rinsch. When discussing the conditions of his release, she said: “The allegations in this case are purely financially.”
Rinsch’s New York court date was not yet determined.
Netflix rejected a statement.
This story was originally on Fortune.com