Netflix Wants $11 Million Back From Director Carl Rinsch, Who Allegedly Spent Lavishly on Cars, Bedding and a $28,000 Sofa

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Netflix wants its money back.

Five years following the transfer of $11 million to director Carl Erik Rinsch for an unproduced sci-fi series, the streaming platform now seeks repayment of these funds.

47-year-old Rinsch was detained recently over allegations of fraud and money laundering. It’s claimed he used the funds for extravagant shopping sprees, risky investments, and lawsuits against Netflix. Currently out on a $100,000 bail, he is scheduled to appear in court in New York on April 3 for his arraignment.

In the latter part of April, Rinsch will reappear in a civil court in Los Angeles for an examination by Netflix’s legal team regarding his debts. The company has already won a $11.8 million lawsuit and is currently searching for assets that could be confiscated.

As a movie enthusiast, I’ve got to share my insights about a not-so-happy chapter in the life of director, Rinsch. In recent legal documents, his wife’s lawyers have disclosed that Rinsch is currently in a tough spot, owing over $420,000 in spousal support. This debt has been accumulated due to ongoing court-ordered payments to his spouse, Gabriela. To add to the strain, Rinsch himself confessed earlier this year (January 2024) that he’s grappling with severe financial hardship.

For the past four years, instead of receiving a salary, he’s had to utilize the company’s funds for living expenses due to financial hardship,” he explained. He added that the company’s income had significantly decreased and left him with no choice but to sell assets and borrow $150,000 from his family to keep going.

He stated, “My monthly earnings are nonexistent as I’ve had to dedicate all my energy towards becoming a full-time litigator.

Originally hailing from Los Angeles, Rinsch was previously a promising commercial director, supported by two influential mentors. Under the guidance of Ridley Scott, he created futuristic advertisements for Heineken, BMW, and Mercedes. This opportunity then paved the way for him landing the role of director for “47 Ronin,” a samurai movie featuring Keanu Reeves.

Following a turbulent period of creative struggle, the movie failed spectacularly, leading to a significant loss of around $120 million for Universal. However, Rinsch found a crucial supporter in this challenging time. Later on, Reeves decided to financially back “White Horse,” a mini-series exploring humanoid AI characters, which was one of Rinsch’s projects.

Based on court records, the project underwent various changes. It initially began at Annapurna, later drawing attention from director Rian Johnson, who assumed an executive producer role. A total of six episodes were filmed, each between four and ten minutes long, with intentions to add seven more. In early 2018, Netflix executives visited Reeves’ residence to review the script, eventually deciding to invest $44 million to finish the project (renamed “Conquest”) while purchasing out previous investors.

Upon the commencement of filming in Brazil, as per an arbitrator’s decision, Rinsch exceeded the budget. The ruling pointed out multiple problems, such as casting complications and accusations of misconduct and abusive behavior on set. Following additional shooting in Uruguay and Hungary, production concluded in December 2019.

It’s claimed that Rinsch requested an extra $11 million for completing the initial season, but instead of utilizing it for its intended purpose, he reportedly invested the funds in stocks and cryptocurrencies. Additionally, he allegedly spent the money on a Rolls Royce fleet, high-end items, and antique furnishings.

Towards the end of 2020, Netflix opted to forfeit their $55 million investment. When informed that the streaming service would no longer finance the project, Rinsch did not respond positively. As per an arbitration decision, he wrote a scathing email to a Netflix executive starting with “Dear Coward,” stating “It’s time to come clean.” He continued in a similar vein, leading some to speculate that he may have been experiencing a mental breakdown, according to the ruling.

During an arbitration proceeding, Rinsch stated that the observed conduct stemmed from his unique brain functioning, more precisely, Autism Spectrum Disorder.

He stated clearly that whatever is happening over there isn’t due to drugs nor mental illness. Instead, it appears to be intensifying a unique neurological condition that many people may struggle to comprehend.

By the month of May 2021, Rinsch’s cryptocurrency investments had accumulated approximately $26.7 million within his Kraken account, as stated in legal documents.

That year in September, he splurged on two luxurious mattresses from Hästens – the Grand Vividus in black, a renowned and costly model crafted in Sweden, priced at approximately $439,900, and a white Vividus King for about $210,400. These were tailored to special, broad dimensions, nearly seven feet square.

Rinsch received a mattress that was too short for his needs, prompting him to express dissatisfaction. He subsequently attempted to cancel his order, citing ethical concerns and allergies related to horsehair materials used in the product. The company, Hästens, aimed to charge him a $100,000 fee for returning the mattress. (The majority of his lawsuit was dismissed by the judge, and the case was eventually dropped.)

In dispute with Netflix, director Rinsch stated he intended to incorporate mattresses into the second season of “Conquest” – a decision Netflix had not approved. The arbitrator pointed out that it’s common practice in such cases to rent props or find less costly alternatives for high-end items. Furthermore, she remarked that the purchase was “unnecessarily extravagant” since in Rinsch’s own storyboards for a “palace scene,” the mattress would not have been noticeable.

At approximately the same period, as per the arbitrator’s decision, Rinsch additionally invested $5.4 million in purchasing furniture. In one particular case, he consented to acquire 14 items designed by Art Deco creator Jacques Adnet, which included a desk and cabinet priced at $48,000, a sofa costing $28,000, and several armchairs. Following an indication of a more substantial purchase, he reduced the order due to “financial difficulties.

“Instead of sharing my frustrations from various film industries around the globe, let me assure you that my experiences have been equally disheartening everywhere,” I penned to the distributor in January 2022. [This maintains the first-person perspective and rephrases the original sentence for a more natural, conversational tone.]

Later on, he demanded the reimbursement of a $200,000 down payment, asserting that his project had been hindered by a studio’s catastrophic failure. The dealer filed a lawsuit, and following a jury trial in Philadelphia in 2023, Rinsch was instructed to repay an outstanding amount of $68,200.

By April 2022, Rinsch’s Kraken account was reportedly between $1.5 million and $1.8 million, as stated during the divorce proceedings. During a court hearing in May, a judge expressed doubt: “Were the cryptocurrencies you acquired, sir, derived from your production funds?

“Yes, sir,” Rinsch said.

The judge seemed alarmed.

Let me just pause here for a moment,” I expressed. “Hang on, take a beat. In the real-world scenario for professionals like you, it’s common to establish an LLC (Limited Liability Company), a loan-out corporation, or even a close corporation. The purpose of this entity is production-related. All income flows into an account belonging to that entity, keeping business transactions and expenses distinct from personal finances – essentially running the business side of things.

Rinsch replied: “That’s correct.”

As a passionate cinephile, I find myself compelled to share some troubling news about one of our industry’s directors – Rinsch. Reportedly, he is facing allegations that he moved Netflix’s funds into his own account and splurged it at an alarming rate. Here’s a breakdown:

– He charged around $1.8 million on credit cards.
– Spent roughly $1 million on legal fees for suing Netflix and handling his divorce case.
– Dropped a significant sum of $652,000 on luxury watches and fashion items.

These claims are based on the indictment that has been made public.

By May 2023, I held approximately $482,000 in my checking account, while my Kraken balance was reduced to around $68,000. My monthly outgoings included a substantial $16,500 for rent and $3,500 for dining out. The judge mandated that I should cover my wife’s legal fees to the tune of $275,000 and also pay for her forensic accountant.

In the courtroom, I found myself in a predicament. “Regrettably,” I explained, “my financial resources are limited at this time.” I was alone, without an attorney to guide me through the proceedings. Surviving day by day was all I could manage. The law is complex and unfamiliar to me; I didn’t know what my options were. A question crossed my mind: Could I possibly write a letter of apology, including my financial accounts, as a means of transparency and goodwill?

Instead of saying “As the judge was attempting to clarify that he couldn’t offer legal advice, Rinsch interrupted with ‘Nobody should mock me.'”, you could also say “While the judge made it clear he couldn’t provide legal guidance, Rinsch countered by stating ‘No one should ridicule me.'” or simply “As the judge clarified he couldn’t offer legal counsel, Rinsch countered, stating ‘I shouldn’t be mocked.'” Both versions maintain the original meaning but are written in a more natural and easy-to-read manner.

The judge observed that he had been bearing substantial legal costs. “It appears you understand the situation,” he commented.

“There is no money,” Rinsch repeated.

In January 2024, he declared that the legal expenses had left him nearly penniless. He stated that his possessions were limited to some household appliances, $5,000 in cash, $3,900 in a stock trading account, and a pension worth $110,000 from the Directors Guild of America, which he cannot access yet. Additionally, California had imposed tax debts on him amounting to $68,000.

His lawyers pointed out that by April 2024, he was residing at The Laurel, a high-end apartment complex in West Hollywood, marketed as an “extravagant” dwelling. This, they argued, demonstrated that he was continuing to uphold his prior level of affluence.

Rinsch did not respond to a phone call and email seeking comment. Netflix declined to comment.

After securing a $11.8 million court ruling in August, Netflix’s legal team enlisted the help of private investigators to locate any remaining assets belonging to the defendant. Netflix emphasized to the judge that prompt action was necessary due to reports suggesting that Mr. Rinsch has a tendency to indulge in extravagant spending.

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2025-03-24 19:49