NEW YORK – A Los Angeles-based director and writer, Carl Erik Rinsch, has been formally charged with orchestrating a scheme to defraud a major subscription video on-demand streaming service, referred to in court documents as “Streaming Company-1.” The charges, contained within a seven-count Indictment unsealed in the Southern District of New York, allege that Rinsch misappropriated over $11 million intended for the production of a planned science fiction television show titled “White Horse.”
According to the indictment, instead of applying the substantial funds towards the development and production of the series, Rinsch allegedly diverted the money for his personal enrichment and highly speculative financial ventures. These included significant expenditures on personal items and investments in volatile markets, specifically naming highly speculative options and cryptocurrency trading.
Rinsch was apprehended on March 18, 2025, in West Hollywood, California. Following his arrest, he was scheduled for presentation in the Central District of California later that same day to face the federal charges.
Allegations of Misappropriation of Production Funds
The indictment provides a detailed account of the alleged scheme. Funds totaling over $11 million were provided by “Streaming Company-1” with the specific purpose of financing the science fiction television show, “White Horse.” This type of upfront financing is common in the entertainment industry, allowing producers and directors to cover pre-production, production, and post-production costs necessary to bring a project to fruition.
Prosecutors contend that Rinsch failed to use these funds as stipulated. The core allegation is that he engaged in a deliberate scheme to defraud the streaming service by diverting the project’s budget into his personal control and deploying it for purposes entirely unrelated to the television show. The specific mention of personal expenses and speculative trading underscores the nature of the alleged misuse.
Investments in highly speculative options and cryptocurrency markets are inherently risky and stand in stark contrast to the intended use of funds allocated for a television production budget, which are typically earmarked for crew salaries, equipment rentals, location fees, visual effects, and other direct production costs. The indictment suggests a clear breach of fiduciary duty and an alleged intent to deceive the funding entity.
The “White Horse” Project Context
The planned science fiction series “White Horse” served as the vehicle through which the alleged fraud was conducted. While details about the specific creative vision or scope of the series were not the focus of the indictment’s public summary, its existence as a funded project is central to the charges. The multi-million dollar allocation by “Streaming Company-1” indicates a significant investment and commitment by the streaming service to Rinsch’s project, a commitment that was allegedly exploited.
Such cases can have broader implications for the entertainment industry, highlighting the financial risks involved in financing large-scale productions and the importance of stringent oversight and accountability for production budgets.
Legal Proceedings Underway
The case against Carl Erik Rinsch has been assigned to U.S. District Judge Jed S. Rakoff in the Southern District of New York. Judge Rakoff is a highly respected jurist known for presiding over complex financial and white-collar crime cases.
The filing of a seven-count Indictment signifies that a grand jury has found sufficient evidence to bring formal charges against Rinsch. The specific counts within the indictment were not fully detailed in the public announcement but typically relate to various forms of wire fraud or other financial crimes associated with the alleged scheme to defraud the streaming service of its production funds.
Rinsch’s arrest in West Hollywood, California, on March 18, 2025, marked a significant step in the legal process. His scheduled appearance in the Central District of California that same day was likely for initial processing and arraignment, where he would formally hear the charges against him and enter a preliminary plea.
Officials Announce Charges
The charges and arrest were jointly announced by Acting U.S. Attorney Matthew Podolsky of the Southern District of New York and FBI Assistant Director in Charge of the New York Field Office, Leslie Backschies. This joint announcement underscores the collaborative effort between federal prosecutors and law enforcement in investigating and prosecuting complex financial crimes.
Acting U.S. Attorney Podolsky’s office is leading the prosecution, while the FBI’s New York Field Office conducted the investigation that led to the indictment and arrest. The involvement of these high-level officials highlights the seriousness with which the federal government views the alleged offense.
As with all criminal cases, an indictment contains allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. The legal process is now set to unfold in the Southern District of New York federal court, where Rinsch will have the opportunity to defend against the charges.
Federal authorities have not released further details regarding the ongoing investigation or the specific nature of the personal expenses or investments Rinsch allegedly made with the misappropriated funds.
