'47 Ronin' Director Accused of Defrauding Netflix, Spending $11 Million on Cryptocurrency and Luxury Goods
Carl Rinsch, the director of the hit film "47 Ronin" starring Keanu Reeves, is facing fraud and money laundering charges and could face up to 90 years in prison after allegedly embezzling $11 million from a streaming platform, identified by multiple sources as Netflix.
According to prosecutors, Rinsch requested additional funds from the platform to complete the sci-fi series "White Horse" in 2020, but instead of using the money for production, he transferred the funds to his personal account and began investing them in risky stock deals.
Before asking for additional funding, Rinsch's production company had received $44 million. Prosecutors allege the additional funds were not used for their intended purposes and were instead spent on cryptocurrency transactions and luxury goods.
"Rinsch orchestrated a scheme to steal millions of dollars from a major streaming platform, claiming the money would be used to produce television programming. However, it was all a sham," Acting U.S. Attorney Matthew Podolsky said in a press release.
Heather Morgan, also known by her stage name Razzlekhan. Image: Vimeo / Razzlekhan
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According to reports, in April 2020, Rinsch lost more than half of his Netflix earnings through risky investments like options and cryptocurrency trading, and investing in ETFs that tracked the S&P 500 index. Notably, he "speculated on cryptocurrencies — and ultimately made a profit," according to the indictment.
Rinsch reportedly used the profits from the investments to spend $2.4 million on five Rolls-Royces and a Ferrari, $3.7 million on furniture and antiques, $652,000 on luxury watches and clothing, along with $638,000 on two luxury mattresses and $295,000 on bedding and linens.
The indictment also alleges that in 2023, Rinsch sold his Dogecoin positions, initially worth $4 million and converted to $27 million by May 2021. He allegedly used the Kraken platform to make cryptocurrency transactions through Schwab Bank.
Rinsch failed to complete the TV show as promised and failed to return the money he was paid, despite only producing six short episodes.
He also allegedly spent $1.1 million to hire lawyers to sue the streaming platform for more money and for personal divorce proceedings.
If convicted of wire fraud, Rinsch could face a maximum sentence of 20 years. The money laundering charge carries an additional 20 years, and the five counts of dealing in money from criminal proceeds carry up to 10 years each. In total, Rinsch could face a maximum sentence of 90 years in prison if convicted on all charges.