Carl Erik Rinsch Arrested for Fraud

Carl Erik Rinsch, director of 47 Ronin, was arrested on March 18 in West Hollywood, California, after being indicted for wire fraud and money laundering.

The $11M Fraud

Prosecutors allege that he misused $11 million from a major streaming service, intended for his science fiction television series White Horse, for crypto trading.

According to the indictment, Rinsch secured $44 million from the streaming platform in 2018 to complete White Horse. In 2019 and early 2020, he asked for an additional $11 million, which was transferred to his company on March 6, 2020.

Acting U.S. Attorney Matthew Podolsky stated:
> “As alleged, Carl Erik Rinsch orchestrated a scheme to steal millions by soliciting a large investment from a video streaming service, claiming that money would be used to finance a television show that he was creating. But that was fiction.”

Instead of using the funds as intended, Rinsch allegedly moved them through various accounts to a personal brokerage account, where he lost more than half of the funds in two months through speculative trading. Rather than rerouting the remaining money back into the show, he pivoted to crypto trading and made extravagant personal purchases.

Prosecutors assert he spent nearly $1.8 million on credit card payments, $1 million on legal fees related to lawsuits against the streaming service and his divorce, and $395,000 on luxury hotels and rental properties. Purchases also included $3.8 million on furniture and antiques, $638,000 on two mattresses, $295,000 on luxury bedding, five Rolls-Royces, a Ferrari totaling $2.4 million, and $652,000 on designer watches and clothing.

The Charges Against Rinsch

Rinsch, 47, was indicted on one count of wire fraud, one count of money laundering, and five counts of engaging in financial transactions involving criminally obtained property. If convicted, he faces up to 20 years in prison for wire fraud, 20 years for money laundering, and 10 years for each financial transaction charge.

This is not Rinsch’s first controversy; in 2023, he reportedly took $4 million from a TV show budget to invest in Dogecoin, earning a $27 million return, followed by a lavish spending spree of nearly $9 million on luxury items including high-end furniture, designer clothing, a $380,000 watch, and luxury vehicles.