In an indictment unsealed by the Southern District of New York, Carl Erik Rinsch, a Los Angeles director and writer, is facing severe charges for defrauding a streaming service out of $11 million, allegedly repurposing the funds for personal indulgence and speculative ventures. Rinsch, known for his work on the unfinished science fiction television show "White Horse," was arrested in West Hollywood and is accused of freewheeling the generous funds meant for the show's production into the whirlwind of the stock market and cryptocurrency trading, as per the U.S. Attorney's Office.
According to a statement obtained by the U.S. Attorney's Office, Rinsch’s maneuvers resulted in a loss of over half of the appropriated sum within two months of receipt. Originally, Streaming Company-1 had already sunk $44 million into "White Horse" before agreeing to the additional $11 million that Rinsch had requested to finalize the production. The indictment alleges that instead of directing these funds toward completing the show, Rinsch channeled them through various accounts, eventually pouring them into personal and speculative transactions.
Acting U.S. Attorney Matthew Podolsky detailed the deception, declaring “As alleged, Carl Erik Rinsch orchestrated a scheme to steal millions by soliciting a large investment from a video streaming service, claiming that money would be used to finance a television show that he was creating. But that was fiction. Rinsch instead allegedly used the funds on personal expenses and investments, including highly speculative options and cryptocurrency trading. Rinsch’s arrest is a reminder that this Office and our partners at the FBI remain vigilant in the fight against fraud and will bring those who cheat and steal to justice,” as noted by the U.S. Attorney's Office. This betrayal of trust manifests in a litany of lavish expenditures including, but not limited to, $1,787,000 on credit card bills, approximately $3,787,000 on furniture and antiques, and a sum of $652,000 squandered on watches and clothing.
Rinsch faces one count of wire fraud, which could entail a maximum sentence of 20 years in prison, and one count of money laundering along with five counts of engaging in monetary transactions in property derived from specified unlawful activity, all of which carry serious prison terms. These charges, outlined by the federal prosecutors, still brand Rinsch as innocent until proven guilty. The U.S. Attorney's Office praised the FBI and the IRS - Criminal Investigation for their diligent work in unraveling this web of deceit and expressed their commitment to prosecuting the case through the Complex Frauds and Cybercrime Unit.
