A Los Angeles-based film director and writer, Carl Erik Rinsch, has been convicted for his involvement in an $11 million fraud scheme targeting a subscription video on-demand streaming service. The conviction was announced by Jay Clayton, United States Attorney for the Southern District of New York. Rinsch’s fraudulent activities were connected to a planned science fiction television show called “White Horse.” He is scheduled to be sentenced on April 17, 2026.
“Carl Erik Rinsch took $11 million meant for a TV show and gambled it on speculative stock options and crypto transactions,” said U.S. Attorney Jay Clayton. “Today’s conviction shows that when someone steals from investors, we will follow the money and hold them accountable.”
According to court documents and evidence presented during the one-week trial before U.S. District Judge Jed S. Rakoff, Rinsch entered into an agreement with the streaming company in 2018. Under this agreement, he was paid for completed episodes of “White Horse” and received additional funding to finish the series. Between 2018 and 2019, the company paid approximately $44 million toward the project.
In late 2019 through early 2020, Rinsch requested more funds from the streaming service to complete “White Horse.” On March 6, 2020, he received an additional $11 million intended solely for production costs.
Instead of using these funds as agreed, Rinsch transferred them through several bank accounts before moving them into his personal brokerage account. He then used the money to make personal investments in securities and cryptocurrency. Within two months of receiving the funds, he had lost over half through unsuccessful trading.
Rinsch continued to use remaining funds for personal expenses rather than completing “White Horse.” Purchases included at least $1.7 million toward credit card bills; at least $3.3 million on furniture, antiques, and mattresses; about $387,000 on a Swiss watch; and around $2.4 million on luxury cars such as five Rolls Royces and a red Ferrari.
Rinsch was found guilty of one count of wire fraud (maximum sentence: 20 years), one count of money laundering (maximum sentence: 20 years), and five counts of engaging in monetary transactions involving property derived from unlawful activity (each carrying up to 10 years). Sentencing guidelines are determined by Congress but will ultimately be set by a judge.
Jay Clayton commended the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation for their efforts in this case.
The prosecution is being handled by members of the Office’s Complex Frauds and Cybercrime Unit: Assistant U.S. Attorneys Timothy V. Capozzi, Jackie Delligatti, David A. Markewitz, Kevin Mead, Adam Sowlati—with support from Paralegal Specialists Maria Larracuente and William Coleman.
