Los Angeles Director And Writer Sentenced To Prison For $11 Million Production Fraud

United States Attorney for the Southern District of New York, Jay Clayton, announced that CARL ERIK RINSCH, a Los Angeles-based director and writer, was sentenced today by U.S. District Judge Jed S. Rakoff to 30 months in prison for fraudulently stealing $11 million from a subscription video-on-demand streaming service ("Streaming Company-1") in connection with a planned science-fiction television show called "White Horse," and then laundering that money. RINSCH was convicted following a week-long trial in December 2025 before Judge Rakoff.

"Carl Erik Rinsch orchestrated a scheme to steal millions by seeking $11 million from a subscription streaming service, falsely claiming that money would be used to finance a television show that he was creating," said U.S. Attorney Jay Clayton. "Instead of using the money to make the show, Rinsch made risky bets on highly speculative stock options and cryptocurrency, and spent millions of dollars on luxury goods for himself. Today's sentence sends a deterrent message: fraud will not be tolerated."

As reflected in the Indictment, public filings, and the evidence presented at trial:

RINSCH is a film and television writer and director who partially completed a science-fiction television show called "White Horse." In 2018, RINSCH reached an agreement with Streaming Company-1 in which Streaming Company-1 would both pay RINSCH for the existing episodes of White Horse and also fund completion of the rest of the show. Between 2018 and 2019, Streaming Company-1 paid approximately $44 million for White Horse.

Between late 2019 and early 2020, RINSCH demanded even more money from Streaming Company-1 to complete White Horse. Streaming Company-1 ultimately agreed to pay another $11 million, and transferred those funds to a company RINSCH controlled on or about March 6, 2020. The entirety of those funds was to be spent on the completion of White Horse.

But RINSCH did not use those funds to make the show. Instead, within days, RINSCH began transferring the funds through numerous bank accounts before consolidating them in a personal brokerage account. RINSCH then used those funds to speculate on stock options. His trading was unsuccessful, and in less than two months after receiving $11 million from Streaming Company-1, RINSCH had lost more than half of that money.

Even after losing most of the $11 million, RINSCH still did not spend the remaining funds he had stolen on White Horse. Instead, he used the money to speculate on cryptocurrency, and on personal expenses and luxury items, including at least $1.7 million on credit card bills; at least $3.3 million on furniture, antiques, and mattresses; at least $387,000 on a Swiss watch; and at least $2.4 million on five Rolls Royces and a red Ferrari.

* * *

In addition to the prison term, RINSCH, 48, of Los Angeles, California, was sentenced to three years of supervised release, $11 million in forfeiture, and $700 in mandatory special assessments.

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation.

The case is being prosecuted by the Office's Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Timothy V. Capozzi, Jackie Delligatti, David A. Markewitz, Kevin Mead, and Adam Sowlati are in charge of the prosecution, with the assistance of Paralegal Specialists Maria Larracuente and William Coleman.