by Reza Ali
Los Angeles filmmaker Carl Erik Rinsch, famous for leading the Keanu Reeves vehicle 47 Ronin, was arrested tuesday in West Hollywood on fraud and money laundering charges. Officials charge Rinsch took $11 million from the television series by using it for personal costs and high-risk investment games instead of the intended plan.
According to Acting U.S. Attorney Matthew Podolsky and FBI New York Field Office Assistant Director Leslie Backschies they made public a seven-count criminal indictment against Rinsch.
The indictment states that Rinsch tricked Netflix into giving him money to make White Horse but he never created the science fiction project.
Rinsch’s $44 Million Deal with Streaming Service in 2018
Records show Rinsch and the streaming provider created their deal in 2018 to give $44 million for White Horse development including payment for completed episodes and new series production costs.
After producing the project for several months in late 2019 Rinsch asked for an extra $11 million because the project required more money to reach completion. Under his control the money went to a business entity owned by Rinsch after receiving the funds from the studio.
The court charges that instead of supporting White Horse development Rinsch shifted money between accounts before putting it into a personal stock market account. After funding two months the man utilized his trading skills to lose half of the money in stock market speculation.
Rinsch took the investment funds to pay for excessive personal needs that included $1.79 million credit card purchases and $2.4 million for five Rolls-Royces and a Ferrari.
Corey Rinsch developed a fraudulent scheme by requesting millions from a video streaming service to fund his TV production project but spent the money on himself. That was made-up according to Podolsky in his official statement. He invested all the money in both personal expenses and risky options and cryptocurrency deals.
Rinsch Turns Initial Loss into $27 Million Dogecoin Profit
As shown by the official charges Rinsch turned an unsuccessful start into winning blockchain trades. The New York Times showed that the executive invested $4 million in Dogecoin and reached $27 million profit by May 2021. Although he was not a Kraken exchange employee he bought and sold digital coins through this platform from Schwab Bank transfers.
Rinsch faces an indictment with one wire fraud count that holds a maximum 20-year prison sentence plus one money laundering count with the same possible sentence. He is charged with five counts of money transaction using illegally obtained funds which could result in ten years of imprisonment each.
On Tuesday Judge Pedro V. Castillo of a federal Los Angeles courtroom approved Rinsch’s release under a $100,000 bond. The court will schedule an appearance for the director at its facilities in New York City but has yet to announce dates.
The ongoing court action brings attention to money management problems in Hollywood entertainment funds and shows how public figures must be held responsible for big investment decisions.
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