Netflix director's $11 million fraud case: FBI reveals extravagant spending on Ferrari and takeout orders

Carl Rinsch, the director behind the uncompleted Netflix series "White Horse," is facing trial for allegedly misappropriating $11 million meant for the show's production. FBI testimony revealed Rinsch spent the money on luxury vehicles, furniture, and hundreds of food deliveries.

In March 2020, Netflix provided $11 million to a production company to complete the first season of the sci-fi series "White Horse." The show, envisioned as a 12-episode futuristic saga, was never finished. Instead of funding production, Rinsch diverted funds into personal expenses.

According to court documents, Rinsch spent $9.14 million from a personal bank account originally intended for "White Horse," which was internally referred to as "Conquest." The expenditures included over 480 takeout orders from Postmates and Uber Eats during a six-month period in 2022, sometimes totaling a dozen daily orders.

Furniture was the largest expense category, costing $3.36 million, followed by $2.4 million on luxury cars such as a Ferrari and Rolls-Royces. He also paid $1.8 million on American Express bills and spent additional amounts on hotels, jewelry, and art. FBI agent Michael Naccarelli testified that Rinsch described his Ferrari purchase as "a birthday gift to myself" in a text message to his assistant.

Defense attorneys argue the situation is a civil business dispute, not criminal fraud, claiming that Rinsch, previously known for directing "47 Ronin," was overwhelmed by the responsibilities of writing, directing, and producing the series.

Evidence presented in court shows that shortly after receiving Netflixs funds, Rinsch moved $10.5 million to his personal Wells Fargo account, later transferring portions to a cryptocurrency exchange and other accounts, eventually holding $13.7 million in a Bank of America account. He purchased various cryptocurrencies, including Dogecoin, Ethereum, Bitcoin Cash, and Tether. By April 2022, his Dogecoin holdings were valued at approximately $755,000, with Ethereum at $939,000.

While his stock investments reportedly performed poorly, Rinschs cryptocurrency trades were profitable. FBI testimony highlighted that he referred to himself as "The Dogecoin Whale," claiming substantial earnings from the digital currency during the pandemic.

Rinsch has stated that purchases of four Rolls-Royces were intended for the production, not personal use, and Netflix ultimately wrote off the project as a loss in 2020.

Author's Analysis: The Fallout of "White Horse"

The trial of Carl Rinsch over the alleged misappropriation of $11 million intended for Netflix's "White Horse" highlights a significant breach of trust in film production financing. Court testimony suggests that the funds, originally allocated for completing the series, were largely diverted to personal luxury expenses including vehicles, furniture, and frequent food deliveries.

Evidence shows that Rinsch transferred substantial sums into personal and cryptocurrency accounts, raising questions about financial oversight and accountability in high-budget productions. While defense attorneys frame the case as a civil dispute, the scale and pattern of expenditures point to potential criminal mismanagement.

Rinsch's claims that some purchases were production-related contrast sharply with the detailed FBI testimony describing extravagant personal spending. Netflix’s decision to write off the project in 2020 underscores the financial and reputational impact of the alleged actions. The outcome of this trial may influence how studios monitor large-scale project funding in the future.

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• A Ferrari and over 480 takeout orders: FBI details spending spree of Netflix director in $11 million fraud case