Netflix is demanding a return of $11 million from director Carl Erik Rinsch, five years after the streaming giant invested in his sci-fi series that never saw the light of day. The company alleges that Rinsch misused the funds for lavish purchases, speculative investments, and legal fees to sue Netflix.
Rinsch, 47, was arrested last week on charges of fraud and money laundering for allegedly diverting the $11 million into personal expenses and investments, including luxury items and cryptocurrency. He was released on a $100,000 bond and is scheduled to appear in federal court in New York on April 3. Later in April, Rinsch will return to civil court in Los Angeles, where Netflix’s lawyers are pursuing a debtor’s examination to recover the funds. The company has already secured an $11.8 million judgment against him.
The Conquest Project and Netflix’s Investment
The saga began in 2018 when Netflix agreed to invest in Rinsch’s ambitious sci-fi series, initially called White Horse. The project, which featured humanoid AI beings, had been developed with help from actor Keanu Reeves, who had previously worked with Rinsch on the 2013 film 47 Ronin. Initially, White Horse drew interest from other prominent Hollywood figures, including director Rian Johnson, who was brought on to executive produce.
By early 2018, Netflix executives met with Reeves to review the project’s script, and the company decided to back the series with a $44 million investment. This included buying out previous investors to take full control. Production began in Brazil, but issues quickly emerged. According to an arbitration ruling, Rinsch went over budget, and the production faced various problems, including casting issues and allegations of harassment on set. Despite these setbacks, the project continued, with additional filming in Uruguay and Hungary, wrapping up in December 2019.
However, things took a turn when Rinsch sought an additional $11 million to complete the first season. Instead of using the funds for production, Rinsch allegedly gambled the money on speculative investments, including the stock market and cryptocurrency. He is also accused of using the funds to indulge in luxury items, such as a fleet of Rolls-Royce cars and expensive antique furniture.
Lavish Purchases and Legal Battles
One of the most notable purchases Rinsch allegedly made with Netflix’s funds was a pair of extremely expensive mattresses. In 2021, he spent $650,000 on two Hästens Grand Vividus mattresses, purportedly the most expensive mattresses in the world. He later attempted to cancel the orders, citing concerns about the materials used in the mattresses. However, the lawsuit he filed against the manufacturer was largely dismissed, and the case was dropped.
Rinsch also spent significant amounts on luxury furniture, including $5.4 million worth of items, and engaged in a legal battle with an Art Deco furniture dealer over a $200,000 deposit. These expenditures raised eyebrows, especially considering that the series was far from finished. At the time, Rinsch had already been informed that Netflix would no longer continue funding the project.
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In a 2020 email to a Netflix executive, Rinsch allegedly lashed out, writing, “Dear Coward,” and demanding accountability for the project’s stalled progress. Arbitration hearings later revealed that Rinsch’s behavior may have been influenced by his neurodiversity, specifically autism spectrum disorder. Rinsch testified that his actions were not due to drug use or mental illness but were exacerbated by his condition.
Financial Woes and Legal Troubles
As Rinsch’s financial troubles mounted, he claimed in court filings that he was in “severe financial distress.” In January 2024, Rinsch stated that he had been forced to rely on company funds for personal expenses after his company’s revenue dwindled. He had liquidated assets and borrowed $150,000 from family members to stay afloat. He also noted that his monthly income had dropped to zero, and he had been forced to focus all his efforts on litigation rather than his career.
Rinsch’s financial troubles were compounded by his divorce from Gabriela Rinsch. In recent court filings, Rinsch was shown to owe $420,000 in spousal support. His legal expenses, including fees for the ongoing lawsuit with Netflix and his divorce case, have added to his financial woes.
In a 2023 court hearing, Rinsch testified that his only remaining assets were a few kitchen appliances, $5,000 in cash, and a $3,900 brokerage account. He also listed a $110,000 pension with the Directors Guild of America, though he was not yet eligible to access it. Meanwhile, Rinsch was living at the ultra-luxury Laurel apartment building in West Hollywood, prompting accusations from his wife’s attorneys that he was maintaining a lavish lifestyle despite his claims of financial hardship.
Netflix’s Pursuit of Assets
With the $11.8 million judgment in hand, Netflix is actively seeking to recover its investment. The company has enlisted private investigators to track down Rinsch’s remaining assets, as it suspects he may still have funds hidden away. Netflix has expressed urgency in locating these assets, citing Rinsch’s history of spending sprees.
Rinsch’s legal battles are far from over. In addition to the ongoing civil case in Los Angeles, he faces federal charges related to fraud and money laundering. His next appearance in federal court is scheduled for April 3, where he will face further scrutiny over his alleged misuse of Netflix’s funds.
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As the case unfolds, Netflix is determined to recover its investment, while Rinsch’s once-promising career seems to be unraveling amid the financial and legal troubles surrounding the Conquest project.
Netflix declined to comment on the ongoing legal proceedings, and Rinsch did not respond to requests for comment. The case continues to develop, with both sides preparing for additional court hearings in the coming months.
