Hollywood writer and director Carl Erik Rinsch has been arrested for allegedly cheating Netflix out of $11 million.
Rinsch was arrested in West Hollywood, California, on Tuesday on wire fraud and money laundering charges for allegedly running a scheme to defraud the streaming service, according to The Associated Press.
He is being accused of spending the money on cryptocurrency investments, Rolls-Royces and a Ferrari.
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Prosecutors have said that Rinsch was originally paid $44 million by Netflix for his unfinished show, “White Horse,” but the director requested an additional $11 million to complete it.
Rinsch allegedly transferred the $11 million to his personal accounts and made investments that lost him half of that in two months, according to prosecutors.
The indictment showed that Rinsch transferred the remaining money from the $11 million Netflix gave him into the cryptocurrency market, which gave him a profit that he then transferred to his personal account.
Prosecutors stated that Rinsch spent $10 million on personal items, including $1.8 million on credit card bills, $1 million on lawyers to sue the streaming service for “more money,” $3.8 million on furniture and antiques, $2.4 million for five Rolls-Royces and one Ferrari and finally, $652,000 on watches and clothes.
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Rinsch was in court on Tuesday in a turtleneck sweater and jeans with shackles on his hands and ankles. U.S. Magistrate Judge Pedro V. Castillo agreed to let Rinsch go on $100,000 bond on Tuesday.
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Annie Carney, Rincsh’s attorney, said during the hearing that the allegations against her client are “purely financial” and declined to comment outside the courtroom.
Rinsch’s next court hearing in New York, where the indictment was filed, does not have a date set.
The Associated Press contributed to this report.
