The director of Hollywood accused of fraying $ 11 million from Netflix

A Hollywood director was arrested and accused of using funds in the studio intended to complete a series of science fiction to buy luxury cars, cryptocurrency and elegant bed linen for himself.

Carl Erik Rissch, 47, is accused of federal fraud and money laundering relating to $ 11 million (£ 8.5 million) which was given by Netflix to create a series called White Horse.

Mr. Rissch, who is known above all for the film 47 Ronin of 2013, refused to participate in an appeal when he appeared in a court of Los Angeles Tuesday.

The accusation does not name Netflix, referring to a “streaming service at the request of subscription videos”, but the long -standing dispute of Rinscch with Netflix on the failed series has previously been advertised in relations in the US media.

Netflix refused to comment on his arrest.

Between 2018 and 2019, the streaming giant gave Rissch an initial budget of $ 44 million to film the show, which depicts artificial human clones, but presumably has never completed a single episode.

In March 2020, Netflix sent him more $ 11 million after arguing that the initial budget was not “sufficient”, according to the ministries.

But instead of using the funds for the series, presumably transferred them to his personal bank accounts and used it to invest in various risky financial initiatives, said the United States Department of Justice.

“Carl Erik Rissch has orchestrated a scheme to steal millions by soliciting a great investment from a video streaming service, claiming that the money would be used to finance a television show that was creating,” said Prosecutor Matthew Podolsky in a statement Tuesday.

“But that was fiction.”

Only two months after receiving $ 11 million, about half had already been spent, says the accusation.

While “he was losing” the money, Rissch would inforce Netflix that the show was “fantastic and go ahead really well”, according to the accusation.

Presumably he used the remaining funds to speculate on cryptocurrency and on personal expenses and luxury objects for himself, including a Rolls-Royces fleet and a Ferrari, affirm the court documents.

The folly of expenditure also included $ 1.8 million for credit cards invoices, $ 3.7 million on antiques and $ 933,000 furniture and luxury bed linen, says the Justice Department.

The accusation also maintains that $ 1 million money was sent to lawyers to report Netflix in the hope of receiving more funds and divorce.

A profile of the dispute published by the New York Times in 2023 reported that friends and colleagues had described Mr. Ringsch to grow more and more irregular shortly after signing the Netflix agreement.

The newspaper reports that he believed he could predict lightning and volcanic eruptions and knew of a “secret transmission mechanism” for Covid-19.

According to the Associated Press, Mr. Rinscch made an initial court appearance on Tuesday. When he was asked by the judge if he had read the accusation of 12 pages, according to what reported he replied: “Do not cover to cover”.

It has been released on a deposit of $ 100,000 and should participate in a process in New York later. If considered guilty, he faces 20 years in prison. [BBC]