Carl Erik Rinsch Crypto Bets End With Prison Sentence After $11 Million Fraud

A science-fiction series was supposed to be heading to screens. Instead, it ended with stock options, crypto trades, luxury cars, and eventually a prison sentence.

Director and writer Carl Erik Rinsch was sentenced to 30 months in prison after being convicted of fraudulently diverting $11 million intended for the completion of a television show called White Horse. According to federal prosecutors, the money wasn’t used to finish the project.

White Horse Funding Took A Sharp Detour

Rinsch had previously reached an agreement in 2018 with a subscription streaming service to complete the science-fiction series. Between 2018 and 2019, the company reportedly paid around $44 million for the project.

Then came another request. Between late 2019 and early 2020, Rinsch sought an additional $11 million, claiming the funds were needed to finish production. The streaming company approved the request and transferred the money to a company under his control on March 6, 2020.

Within days, prosecutors say the money began moving through multiple bank accounts before landing in a personal brokerage account.

Stock Options Burned Through Millions Quickly

The first destination for the funds was the stock market. According to court filings, Rinsch used the money for speculative stock options trading. The bets went badly. Less than two months after receiving the funds, more than half of the money had already disappeared. Yet the spending spree wasn’t over.

Cryptocurrency Trades Fueled Luxury Lifestyle

Federal prosecutors stated that the remaining funds were directed toward cryptocurrency investments, personal expenses, and luxury purchases rather than production costs.

The list reads more like an auction catalog than a film budget. Authorities cited at least $1.7 million in credit card bills, $3.3 million on furniture, antiques, and mattresses, $387,000 on a Swiss watch, and $2.4 million spent on five Rolls Royces and a red Ferrari.

In addition to prison time, Rinsch received three years of supervised release, $11 million in forfeiture, and $700 in mandatory special assessments.