Carl Erik Rinsch, the movie director, has been arrested by the federal authorities. Prosecutors claim that he invested $11 million that belonged to a large online streaming company on speculation in the stock market and crypto, as opposed to the production of a science fiction television show.
The officials at the FBI and the U.S. Attorney’s Office announced the indictment. They charged that Rinsch had defrauded the streaming service by agreeing to produce a show entitled “White Horse.” In 2018, the company promised to pay for already-produced episodes and fund the rest of the show. Between the years 2018 and 2019, it wired about $44 million to him.
Federal funds lost in crypto trading
By the latter part of 2019, Rinsch insisted on more money. The company eventually approved another $11 million in March 2020. This money was solely for the completion of “White Horse” production.
Authorities said the cash was shifted through various bank accounts by Rinsch. They entered a personal brokerage account, where he invested the cash in securities. The investments failed, and in less than two months, he had lost over half the cash.
Aside from these expenditures, Rinsch spent the remaining show funds on other expenditures, including on cryptocurrency and other luxurious purchases. Investigators reported that he spent over $1.7 million on credit card purchases. He spent more than $1 million on legal fees, including suing the streaming company for more money. He spent almost $400,000 on lodging at the Four Seasons and other luxury hotels as well.
Federal charges follow lavish spending spree
The majority of his spending involved high-end commodities. He spent almost $3.8 million on antiques and furniture alone. Investigators found that he spent over $600,000 on two beds and almost $300,000 on high-end bedding. He bought five Rolls-Royces, a Ferrari, as well as expensive watches and clothing.
The charges against the 47-year-old Rinsch include one count of wire fraud and one count of money laundering, both carrying a maximum penalty of 20 years. Moreover, he has been charged with illegal monetary transactions on five counts, each punishable with up to 10 years in prison. The authorities stress that the charges are mere accusations.
Rinsch remains innocent until proven guilty in court. The FBI and the IRS investigated the case, and the Complex Frauds and Cybercrime Unit in the U.S. Attorney’s Office is prosecuting the case. If found guilty, a judge will determine the sentence.
