Hollywood director-writer Carl Erik Rinsch, who worked on 47 Ronin, was arrested for charges of money laundering and wire fraud. The federal prosecutors have charged Rinsch with cheating streaming giant Netflix out of $11 million which was to be spent on producing a science fiction show that never took place.
Lavish Spending Spree Exposed
Rinsch supposedly spent millions on personal indulgences. The prosecutors alleged that, Rinsch instead, channeled the money into investments in cryptocurrency hoping for huge returns but losing huge sums and lavish spending, which involved buying several Rolls-Royces and a Ferrari.
Legal Troubles And Charges
Rinsch has been charged with wire fraud and money laundering , both of which have serious legal consequences. If found guilty, he may be fined a large amount of fine and might even have to serve a long prison sentence. The authorities are in the process of tracking down the misappropriated funds and recovering Netflix’s loss.
As the case develops, it is a stark reminder of the dangers faced by entertainment companies when they spend heavily on production. Netflix has yet to release a public statement about the allegations of fraud, but sources say that the streaming giant is analyzing its financial management processes to ensure that such situations do not occur in the future.
