Developer of Netflix show to face trial for $11 million spending binge, buying 5 Rolls-Royces, $638,000 worth of mattresses

Carl Erik Rinsch Heads to Trial in Manhattan on Fraud and Money Laundering Charges

Filmmaker Carl Erik Rinsch is set to appear in federal court in Manhattan on Tuesday, facing accusations that he diverted 11 million dollars from Netflix that had been allocated for a sci fi series he never completed. Prosecutors allege that instead of completing the humans versus clones project, Rinsch used the funds to settle personal debts and purchase a range of high end items, including luxury cars, furnishings, and two mattresses valued at a combined 648 thousand dollars.

The trial is expected to open with details of an intense competition among major streaming platforms for the rights to the series, at one point drawing interest from several companies including Amazon. Jurors may also be shown the first public screening of raw footage from the dystopian, AI themed production, originally titled White Horse. According to the New York Times, actor Keanu Reeves had been an early investor in the concept.

Prosecutors intend to outline Rinschs spending patterns, which they say were funded with Netflixs money. Purchases include multiple luxury vehicles, designer goods, high priced rentals, and the two costly mattresses. During a previous civil deposition, Rinsch acknowledged their extravagant cost, saying they were unusual and claimed they could gain value over time.

Charges and Background

Rinsch, age forty eight, faces counts of wire fraud, money laundering, and unlawful monetary transactions, with a potential maximum sentence of ninety years. The case centers on the collapse of a series initially named for the horse of the first apocalyptic horseman, later retitled Conquest.

According to federal filings, Netflix first provided 44 million dollars for the project in 2018 after viewing a trailer and six short segments Rinsch had already produced. Two years later, the company transferred an additional 11 million dollars earmarked for specific production expenses, including wardrobe, editing, and payroll. Prosecutors say Rinsch instead moved the funds through various accounts into a personal brokerage account.

Authorities contend that he then lost more than half of the sum through speculative stock trades while reassuring Netflix executives that progress on the show was excellent. Remaining funds were allegedly placed into cryptocurrency, generating nearly 10 million dollars. Prosecutors assert that these gains were spent on personal expenses such as credit card payments, divorce related legal fees, and luxury goods including five Rolls Royce vehicles that Rinsch has described as props for the series. None of the planned thirteen episodes for the first season were finished.

Witnesses and Defense Strategy

The case will be overseen by US District Judge Jed Rakoff and is expected to run for two weeks. Several former Netflix executives are scheduled to testify, including Cindy Holland, Peter Friedlander, Rochelle Gerson, and Bryan Noon. Rinschs former wife, once a producer on the project, is also expected to appear as a witness.

Defense filings attribute the projects failure to the pandemic and what Rinschs legal team characterizes as Netflixs choice to abandon the series and classify it as a tax loss. Prosecutors dispute this, pointing instead to what executives believed was a significant decline in Rinschs mental health around the time the final transfer was made. While the defense is not pursuing an insanity claim, it argues that his mental state should be considered during trial.

According to court documents, Rinsch is currently described as unemployed and without financial means. Despite the severity of the charges, his attorneys say he refused to consider a plea agreement. His lead lawyer, Daniel Adam McGuinness, has stated that Rinsch is prepared to demonstrate his innocence in court.