Carl Erik Rinsch, a director with a single feature film credit, has been charged with wire fraud, money laundering, and other financial crimes by prosecutors in the Southern District of New York. The charges stem from an alleged $11 million fraud scheme involving Netflix, which had commissioned Rinsch to produce a 13-episode sci-fi series.

According to the indictment, Netflix paid Rinsch $44 million between 2018 and 2019 to produce the show, originally titled "White Horse" before being renamed "Conquest." However, when Rinsch claimed he needed an additional $11 million to complete the series, Netflix obliged, only to discover that Rinsch had misappropriated the funds for personal use.

Rinsch allegedly deposited $10.5 million of the money into a brokerage account, where he lost more than half of it in less than two months. Meanwhile, he told Netflix that work on the show was progressing well, despite having no intention of completing the project. The remaining funds were invested in cryptocurrency, which eventually proved profitable.

The director's lavish spending spree included purchasing five Rolls-Royces, one Ferrari, and nearly a million dollars' worth of mattresses, bedding, and linens, which he claimed were props for the show. A mediator later ruled that none of these items were necessary for the production, and Rinsch was ordered to pay Netflix $12 million.

Rinsch's behavior became increasingly erratic, with reports of him sending emails to Netflix executives claiming he could map the "coronavirus signal emanating from within the earth" and predicting earthquakes. The project was eventually canceled in 2021, leaving the series unfinished.

This case highlights the risks involved in investing large sums of money in creative projects, particularly when dealing with individuals with a history of questionable behavior. It also raises questions about the due diligence and oversight mechanisms in place at Netflix and other streaming companies to prevent such fraud.

The consequences of Rinsch's actions will likely have far-reaching implications for the entertainment industry, serving as a cautionary tale for producers, directors, and streaming platforms alike. As the case unfolds, it will be interesting to see how the industry responds to this high-profile example of fraud and deception.