Carl Rinsch embezzled millions from Netflix, didn't make single episode, bought stocks, crypto, 5 Rolls-Royces, Ferrari

[BusSport]

This story is wild. The audacity of this guy is incredible:

- gets tens of millions of dollars from Netflix for a TV series
- spends the money on stocks (lost $6 million), crypto ($23 million profit on Dogecoin!), 5 Rolls-Royces, and a Ferrari
- claims in his divorce papers that those purchases were for TV production so his ex-wife can't touch them
- claims in his arbitration papers that those purchases were personal so Netflix can't touch them
- never actually makes a single episode of the TV series
- is now suing Netflix for more millions

"Netflix director embezzled show budget to buy and sell stocks and cryptocurrencies":

Carl Erik Rinsch, the director of the Netflix series Conquest, misappropriated $4 million of the show's budget to bet on DOGE and made a profit of $27 million. Netflix spent $55 million on Conquest, but has yet to release a single episode. In March 2020, after Netflix purchased Rinsch's concept and provided a budget of US$44 million, the director requested additional funds 16 months later, and Netflix agreed to an additional US$11 million after the series was completed. Rinsch used $10.5 million of the new money to trade the stock market, losing nearly $6 million through options bets on pharmaceutical companies and the S&P 500. He invested the remaining more than 4 million US dollars in DOGE. He allegedly withdrew approximately $27 million in liquidation in May 2021. Rinsch has filed a confidential arbitration proceeding against Netflix, claiming breach of contract and seeking $14 million.

 

[BusSport]

"Netflix Pays Filmmaker $55M For Sci-Fi Project, But He Gambles Away At Least $11M On Trading Stocks, Buying Dogecoin":

While it's not uncommon for Hollywood productions to go haywire, Netflix Inc. (NASDAQ:NFLX) has reportedly invested $55 million on a project that may never see the light of day. Of which, $11 million was invested in stocks and cryptocurrency by a filmmaker who is now at odds with the streaming giant.

What Happened: Netflix is currently engaged in a "confidential arbitration" process initiated by the filmmaker Carl Erik Rinsch, claiming that the company breached the contract and owed him at least $14 million in damages. Netflix has denied such claims, reported The New York Times.

It all started when Cindy Holland, Netflix's VP of original content at the time, decided to win the auction for Rinsch's proposed project -- a science fiction series based on artificial humans. This TV series named "Conquest" has resulted in a massive loss of money, time, and energy for Netflix because, to date, the streaming giant hasn't received a single finished episode. It is also at the center of this dispute.

As per the report, Netflix had already paid $44 million to Rinsch when he requested additional funds from the company in March 2020. While Netflix was reluctant to provide more funding, they agreed after the filmmaker suggested that the entire project might collapse without the additional cash injection.

However, instead of putting the money into production, Rinsch transferred $10.5 million of the $11 million that Netflix wired into his brokerage account at Charles Schwab and placed bets on the stock market, the report noted, citing copies of his bank and brokerage statements presented during his divorce case.

And, within weeks, he lost $5.9 million.

In March 2021, after Holland's exit and management overhaul at Netflix, the streaming platform informed the filmmaker about their decision to stop funding "Conquest."

They also told him he could take the project elsewhere, but the acquirer must reimburse the company investment. Rinsch wasn't happy, to say the least.

Interestingly, he started using what remained of the $11 million that Netflix paid him to buy cryptocurrencies.

He bought Dogecoin (CRYPTO: DOGE) for more than $4 million -- but unlike his luck with stocks, by May 2021, his Dogecoin investment resulted in nearly $27 million, the report noted.

Rinsch then bought five Rolls-Royces, a Ferrari, a Vacheron Constantin watch, expensive, high-end furniture, and designer clothes. The filmmaker claimed later during his divorce proceedings that this shopping was for the production of "Conquest" and was done with the money Netflix wired. However, during the arbitration case with Netflix, he changed his positioning and claimed that the money was contractually his.

Notably, Netflix won the deal to produce Rinsch's science fiction project after beating rival Amazon Inc., which had already reached an informal eight-figure agreement with the filmmaker. Now, it appears Amazon might have dodged a bullet without even realizing it.

 

[eaglesnut]

Love it. Good for him.

 

[foster4prez]

Absolute legend.

 

[redskinsfan1963]

netflix must have shitty bookkeepers.