Filmmaker Carl Erik Rinsch Arrested for $11M Fraud, Loses $5.5M on Stock Trades

Filmmaker Carl Erik Rinsch was arrested on March 18, 2025, on charges of fraud and money laundering. The charges stem from allegations that Rinsch misused $11 million in funds provided by a major streaming service for the production of a science fiction TV series that was never completed. The series, initially titled “White Horse” and later renamed “Conquest,” was intended to be a groundbreaking project for the streaming service.

Prosecutors allege that Rinsch diverted $10.5 million of the funds to a personal brokerage account, where he engaged in what they describe as “extremely risky” stock trades. Within less than two months of receiving the funds, Rinsch lost over $5.5 million on call options for a biopharmaceutical company. Despite this financial setback, Rinsch reportedly made several million dollars trading cryptocurrency in February 2021.

The filmmaker allegedly spent his profits on a variety of luxury items, including nearly $3.8 million on furniture and antiques, $2.4 million on five Rolls-Royces and a Ferrari, and over $650,000 on watches and luxury clothing. Additionally, Rinsch reportedly spent $1.8 million on credit card bills and $1 million in legal fees for a lawsuit against the streaming service and for his divorce proceedings.

The series had a troubled history, with the streaming service having previously invested $44 million in the project before providing the additional $11 million in March 2020. Rinsch had assured the streaming service that “Conquest” was “moving forward really well” even while losing their money on risky trades. The streaming service eventually canceled the show in early 2021 when Rinsch’s behavior reportedly turned “erratic.”

The case highlights the risks associated with large-scale investments in entertainment projects and the potential for fraud when funds are misused. The streaming service’s decision to invest in Rinsch’s project, despite his relatively unknown status as a filmmaker, underscores the competitive nature of the entertainment industry and the high stakes involved in securing rights to promising projects.

Rinsch faces serious legal consequences, with the wire fraud and money laundering charges each carrying a maximum sentence of 20 years. The five counts of engaging in monetary transactions in property derived from specified unlawful activity each carry a maximum sentence of 10 years. The case is being prosecuted by the Complex Frauds and Cybercrime Unit, with Acting U.S. Attorney Matthew Podolsky stating that “Rinsch’s arrest is a reminder that this Office and our partners at the FBI remain vigilant in the fight against fraud.”

FBI Assistant Director Leslie Backschies added that “the FBI will continue to reel in any individual who seeks to defraud businesses.” The investigation revealed detailed records of how Rinsch allegedly spent the misappropriated funds, including extravagant items such as $638,000 for two mattresses and $295,000 for luxury bedding and linens. He also reportedly spent $395,000 on stays at the Four Seasons hotel and various luxury rental properties.

Last year, an arbitrator awarded the streaming service $8.8 million in damages after Rinsch initiated arbitration claiming the streaming giant had breached their contract. The arbitrator, former Los Angeles Superior Court Judge Rita Miller, ruled that none of Rinsch’s purchases were necessary for the production. Rinsch’s lawyer, Annie Carney, declined to comment when approached outside the court. Representatives of the streaming service also declined to comment on the indictment when contacted by reporters.

The case has been assigned to New York federal court Judge Jed Rakoff. Rinsch was arrested in West Hollywood, California, and appeared in court on the day of his arrest. The outcome of this case will serve as a cautionary tale for the entertainment industry, highlighting the importance of due diligence and oversight in managing large-scale investments.