Netflix is pursuing legal action to recover $11 million from director Carl Erik Rinsch, who allegedly misused funds intended for a sci-fi series that never materialized. The 47-year-old director was arrested last week on fraud and money laundering charges.
According to prosecutors, Rinsch received the funds from Netflix to complete a series titled "Conquest" but instead spent the money on extravagant purchases and speculative investments. The alleged spending included multiple Rolls Royce vehicles, ultra-luxury furniture, and two custom Hästens mattresses costing over $650,000 combined.
Court documents reveal Rinsch purchased a $28,000 sofa among other high-end furniture pieces totaling $5.4 million. He also allegedly spent $1.8 million on credit cards and $1 million on legal fees.
The director, who previously helmed "47 Ronin" starring Keanu Reeves, claims he is now in "severe financial distress" with zero monthly income. However, Netflix's attorneys note he continues residing in an "ultra-luxury" apartment building in West Hollywood.
Netflix has obtained an $11.8 million judgment against Rinsch and is actively working with private investigators to locate seizable assets. The streaming giant told the court they needed to move swiftly given "Mr. Rinsch's propensity to go on spending sprees."
The director is currently free on $100,000 bond and scheduled for federal court arraignment in New York on April 3. He faces additional court appearances in Los Angeles where Netflix's lawyers will conduct a debtor's examination.
When Netflix ultimately terminated the $55 million project in late 2020, Rinsch allegedly responded with hostile emails to executives. He later attributed his behavior to autism spectrum disorder rather than mental illness or substance use.
The case highlights questions about financial oversight of production funds, as prosecutors allege Rinsch transferred the money to personal accounts rather than maintaining separate business entities as is standard industry practice.
Rinsch's legal team has not responded to requests for comment, while Netflix has declined to comment on the ongoing litigation.