A Hollywood director has been arrested and charged with defrauding Netflix out of $11,000,000 (£8,473,000).
The streamer had given Carl Erik Rinsch, 47, the eight-figure sum to provide a deliberate sci-fi TV series known as White Horse.
However, the United States Attorney’s Office has claimed instead he splashed the cash on ‘personal expenses and luxury items’, in addition to cryptocurrency.
These allegedly embody luxurious bedding and linens, 5 Rolls-Royces and one Ferrari, a keep at a Four Seasons resort and furnishings and antiques.
It has additionally been alleged Rinsch spent $638,000 (£491,671) to buy two mattresses.
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In 2018, Rinsch signed a take care of Netflix through which the streamer agreed to pay for current episode of White Horse and in addition fund the completion of the remainder of the series.
Between 2018 and 2019, Netflix paid roughly $44 million (£33.9m) for White Horse.
Rinsch then demanded extra money from Netflix and it finally agreed to pay one other $11m (£8.5m), which was transferred round March 2020.
Acting US Attorney Matthew Podolsky stated: ‘As alleged, Carl Erik Rinsch orchestrated a scheme to steal thousands and thousands by soliciting a big funding from a video streaming service, claiming that cash can be used to finance a tv present that he was creating. But that was fiction.
‘Rinsch instead allegedly used the funds on private bills and investments, together with extremely speculative choices and cryptocurrency buying and selling.
‘Rinsch’s arrest is a reminder that this Office and our companions on the FBI stay vigilant within the battle in opposition to fraud and can deliver those that cheat and steal to justice.’
Rinsch is charged with one rely of wire fraud, which carries a most sentence of 20 years in jail; one rely of cash laundering, which carries a most sentence of 20 years in jail; and 5 counts of partaking in financial transactions in property derived from specified illegal exercise, every of which carries a most sentence of 10 years in jail.
Rinsch was arrested in West Hollywood, California, and had an preliminary court docket listening to on Tuesday.
According to the Associated Press, he didn’t enter a plea and spoke solely to reply a decide’s questions. He stated he had not learn the indictment ‘cover to cover’ however understood the costs in opposition to him.
Rinsch was launched after posting a $100,000 (£77,000) bond. He will subsequent seem in court docket in New York, the place the indictment was filed. That court docket date has not but been set.
In 2013, Rinsch made his first and solely function movie 47 Ronin, a fantasy adaptation of the Japanese historic epic of the Forty-seven Ronin. It starred Keanu Reeves, Hiroyuki Sanada and Rinko Kikuchi.
Metro has contacted Netflix for remark.
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