A Hollywood filmmaker faces serious legal trouble after allegedly misusing $11 million from Netflix, meant for a sci-fi TV series, to gamble on stocks and crypto. The Department of Justice (DOJ) announced on March 18 that filmmaker Carl Erik Rinsch has been indicted on charges of fraud and money laundering, which could land him in prison for up to 20 years.

Prosecutors allege that Netflix, though not named in the indictment, paid Rinsch in March 2020 to finance "White Horse" (later renamed "Conquest"). Instead of using the funds for production, Rinsch reportedly transferred $10.5 million into a brokerage account to make high-risk stock trades, losing over $5.5 million on options tied to a biopharmaceutical company.

While his stock trades flopped, his cryptocurrency investments fared better. In February 2021, Rinsch reportedly made millions trading crypto. However, instead of returning the funds to Netflix or financing the show, he splurged on luxury items, including $3.8 million worth of furniture and antiques, multiple Rolls-Royces, a Ferrari, high-end watches, and designer clothing worth over $3 million.

The New York Times previously reported that Netflix had given Rinsch $55 million before canceling "Conquest" in early 2021 due to his "erratic" behavior. Prosecutors, however, claim he received $44 million in total. In addition to luxury spending, Rinsch allegedly used $1.8 million to pay credit card bills and another $1 million in legal fees—partly to sue Netflix for more money.

Rinsch has been charged with wire fraud, money laundering, and multiple counts of illegal monetary transactions. Each charge carries a potential 10- to 20-year prison sentence. His case is being handled in a New York federal court under Judge Jed Rakoff. His lawyer declined to comment.