TV director faces charges for $11M fraud in crypto, luxury car spree

The US Department of Justice (DOJ) has charged tv manager Carl Erik Rinsch with defrauding a large streaming institution of $11 million.

In a March 18 statement, Acting US Attorney Matthew Podolsky said:

“Carl Erik Rinsch orchestrated a strategy to bargain millions by soliciting a ample concern from a video streaming service, claiming that wealth would beryllium utilized to concern a tv amusement that helium was creating. But that was fiction. Rinsch alternatively allegedly utilized the funds connected idiosyncratic expenses and investments, including highly speculative options and cryptocurrency trading.”

If convicted, Rinsch faces terrible ineligible penalties. The ligament fraud complaint carries a condemnation of up to 20 years successful prison, portion the wealth laundering complaint could adhd different 20 years.

Additionally, helium faces 5 counts of amerciable monetary transactions, each carrying a maximum condemnation of 10 years.

Production funds misuse

Rinsch initially secured backing from a streaming platform—reportedly Netflix—to nutrient his tv series, White Horse.

Between 2018 and 2019, the institution paid him astir $44 cardinal to screen existing episodes and implicit the project. However, betwixt 2019 and 2020, helium demanded an further $11 million, claiming it was indispensable to decorativeness the series.

Instead of allocating the funds to production, Rinsch funneled the wealth into idiosyncratic investments. He transferred the funds from his institution relationship into a brokerage account, engaging successful speculative securities trading.

His strategy proved disastrous, and implicit fractional of the funds were mislaid successful nether 2 months.

Despite these fiscal setbacks, Rinsch did not redirect the remaining funds toward White Horse. Instead, helium spent the wealth connected lavish purchases, including $1.7 cardinal connected recognition paper payments, $3.7 cardinal connected furnishings and antiques, and $2.4 cardinal connected luxury cars.

He besides allocated astir $1 cardinal to ineligible expenses, including lawsuits against the streaming institution and divorce-related costs.

Additional extravagant purchases included high-end wristwatches, luxury bedding, and extended stays successful five-star hotels.

The station TV manager faces charges for $11M fraud successful crypto, luxury car spree appeared archetypal connected CryptoSlate.