In a shocking turn of events, Los Angeles-based director and writer Carl Erik Rinsch has been charged with orchestrating an $11 million fraud scheme tied to his unfinished science fiction television show, White Horse. The indictment, unsealed today, alleges that Rinsch misused funds from a major streaming service to fuel a lavish lifestyle and risky investments, including cryptocurrency and luxury cars, rather than completing the promised series.
Rinsch, 47, was arrested in West Hollywood and faces seven counts, including wire fraud and money laundering, which could result in up to 20 years in prison for each charge. The case has sent ripples through Hollywood, raising questions about accountability in the entertainment industry.
Rinsch, who had created several episodes of White Horse, entered into a deal with Streaming Company-1 in 2018. As part of the agreement, the streaming giant paid Rinsch $44 million to fund the production and completion of the show. However, by late 2019, Rinsch demanded additional funds to finish the series, arguing that the original budget was insufficient. After negotiations, Streaming Company-1 agreed to transfer an additional $11 million to Rinsch’s company to cover the remainder of the show’s production costs.
According to the indictment, despite the hefty financial backing, Rinsch did not use the $11 million for its intended purpose. Instead, within days of receiving the funds, he allegedly began moving the money through various bank accounts before consolidating it into a personal brokerage account. There, Rinsch made speculative purchases, trading in securities with the funds. However, his financial ventures proved disastrous, as he lost more than half of the $11 million within just two months.
Even after this significant loss, Rinsch did not return to his work on White Horse. According to reports, the director continued to use the remaining funds for personal expenses, including some extravagant and questionable purchases. These included over $1.7 million spent on credit card bills, approximately $1.1 million on legal fees related to a lawsuit against Streaming Company-1, and another $1.1 million for his divorce lawyers.
What remained was spent on extravagant personal expenses, including:
- $1.78 million on credit card bills
- $1.07 million on legal fees, including lawsuits against the streaming service and his divorce
- $395,000 on luxury hotel stays and rentals
- $3.78 million on furniture and antiques, including $638,000 for two mattresses and $295,000 on high-end bedding
- $2.41 million on five Rolls-Royces and a Ferrari
- $652,000 on designer watches and clothing
Rinsch also reportedly gambled a portion of the funds on cryptocurrency, further depleting the money meant for White Horse.
Acting U.S. Attorney Matthew Podolsky condemned Rinsch’s actions, stating, “Rinsch’s arrest is a reminder that this Office and our partners at the FBI remain vigilant in the fight against fraud and will bring those who cheat and steal to justice.”
FBI Assistant Director Leslie Backschies added, “Rinsch allegedly stole more than $11 million to finance lavish purchases and personal investments instead of completing a promised television series. The FBI will continue to reel in any individual who seeks to defraud businesses.”
The case has sparked outrage and debate, with many questioning how such a significant sum could be misused without oversight. Rinsch’s arrest highlights the darker side of Hollywood, where creative ambition can sometimes collide with financial exploitation.
Rinsch is scheduled to appear in court in the Central District of California, with the case assigned to U.S. District Judge Jed S. Rakoff. If convicted, he could face decades in prison, marking a dramatic fall from grace for the once-promising director.
The charges against Rinsch are allegations, and he is presumed innocent until proven guilty. However, the case serves as a stark reminder of the consequences of betraying trust and abusing creative opportunities for personal gain. Stay tuned as this scandal unfolds, revealing more about the high-stakes world of Hollywood financing and the lengths some will go to maintain a life of luxury.
