Netflix has filed charges against director Carl Erik Rinsch after providing him with $55 million to develop a sci-fi series that was never delivered. Federal prosecutors have charged Rinsch with wire fraud and money laundering, alleging he diverted production funds toward personal purchases including luxury vehicles, stock market investments, and cryptocurrency.
The case represents the latest in a series of high-profile financial missteps for the streaming giant. Court documents indicate Rinsch received multiple payments between 2018 and 2020 for a project initially titled “White Horse” and later renamed “Conquest.”
Instead of producing the contracted series, Rinsch allegedly redirected the funds to personal investments and purchases. He now faces up to 90 years in prison if convicted on all charges.
This incident follows several other costly productions that have failed to deliver returns proportionate to their budgets. “The Electric State” reportedly cost the platform $320 million but underperformed upon release.
Similarly, “Red Notice” — with its $200 million budget — and “The Gray Man” represent additional instances where hundreds of millions were allocated to projects that critics argue didn’t justify their substantial price tags.
The Rinsch situation differs notably as the platform received no finished product despite the substantial investment. According to CBS News, prosecutors allege Rinsch used production funds to finance personal stock market and cryptocurrency ventures.
These financial decisions come amid Netflix’s recent subscription price increases, raising questions about fiscal management at the company. While the platform continues to emphasize its market position in the streaming landscape, these high-cost productions — and in this case, an apparent fraud — highlight ongoing concerns about spending oversight.
The streaming service has not issued a statement regarding potential changes to its project funding protocols following the incident.
