Funds Diverted to Crypto Trades, Luxury Splurges
Carl Erik Rinsch, known for directing “47 Ronin,” has found himself embroiled in a significant legal scandal after being arrested on March 18 in West Hollywood, California. The charges against him include wire fraud and money laundering, stemming from allegations that he misappropriated $11 million from a popular streaming service intended for his science fiction television series “White Horse.”
### The $11M Fraud
The indictment details how Rinsch entered into an agreement with the streaming platform in 2018 that secured $44 million for the production of “White Horse.” However, things took a troubling turn when Rinsch requested an additional $11 million in 2019 and early 2020, a sum that was subsequently transferred to his company on March 6, 2020.
Acting U.S. Attorney Matthew Podolsky characterized Rinsch’s actions as “orchestrated a scheme to steal millions.” He highlighted the stark contrast between Rinsch’s claims of using the money for his television project and the reality that such intentions were nothing more than a fabrication.
Instead of channeling the funds into the production, Rinsch allegedly funneled the money through various accounts, ultimately transferring it to a personal brokerage account. Once there, he engaged in high-risk securities trading, which led to more than half of the funds disappearing within just two months.
### Extravagant Personal Spending
As if his financial maneuvers weren’t troubling enough, Rinsch’s subsequent choices demonstrate a pattern of extravagant personal expenditure. Prosecutors assert that he diverted the remaining funds into cryptocurrency trading, ignoring the original purpose of the investment entirely. His spending spree reportedly included:
– Nearly $1.8 million on credit card payments.
– $1 million on legal fees stemming from lawsuits related to the streaming service and his divorce.
– $395,000 on luxurious hotel stays and rental properties.
– $3.8 million on furniture and antiques—staggering amounts that included $638,000 for two mattresses and $295,000 on high-end bedding.
– Five Rolls-Royces, a Ferrari, designer watches, and clothing—all culminating in approximately $2.4 million.
### The Charges Against Rinsch
The charges against Rinsch are severe. He faces one count of wire fraud, one count of money laundering, and five counts related to financial transactions involving illegally obtained property. If convicted, his potential sentences could rack up to 20 years for wire fraud and money laundering, alongside 10 years for each financial transaction count.
This isn’t Rinsch’s first brush with controversy. In 2023, it was rumored that he took a substantial portion—$4 million—from the show’s budget to invest in Dogecoin, which reportedly yielded a staggering $27 million in returns. However, this newfound wealth led to yet another lavish spending spree, where he allegedly splurged nearly $9 million on luxury items, including furniture, designer clothes, and high-ticket vehicles.
In light of these developments, Rinsch’s case sheds light on the intersections of the entertainment industry with speculative financial ventures, raising questions about ethical practices within production budgets and management of funds in creative projects.
