In a stunning turn of events, Hollywood director Carl Erik Rinsch has been arrested and charged with defrauding Netflix of a whopping $11 million. Authorities allege that instead of using studio funds meant to produce his sci-fi series "White Horse," Rinsch funneled the money into an extravagant lifestyle, purchasing luxury cars, high-end cryptocurrency investments, and lavish home furnishings.

Rinsch, 47, who gained notoriety for his film "47 Ronin" in 2013, found himself in a Los Angeles courtroom, where he declined to enter a plea during his arraignment. Although the indictment cleverly avoids naming Netflix, it refers to a "subscription video on-demand streaming service," which has been at the center of a tumultuous conflict regarding Rinsch's failed project, as reported by various media outlets.

Netflix has opted not to comment on the matter following Rinsch's arrest. From 2018 to 2019, the streaming giant allocated an initial budget of $44 million for the series, centered on the intriguing concept of artificial human clones. However, Rinsch reportedly failed to produce a single episode and claimed that the initial budget was inadequate, prompting Netflix to provide an additional $11 million in March 2020.

But what did Rinsch do with the extra funding? According to the U.S. Justice Department, instead of investing in his sci-fi vision, Rinsch allegedly transferred the funds to his own accounts and engaged in high-risk financial maneuvers. Prosecutor Matthew Podolsky stated, “Carl Erik Rinsch orchestrated a scheme to steal millions by soliciting a large investment from a video streaming service, claiming that money would be used to finance a television show that he was creating. But that was fiction.”

Remarkably, just two months after receiving the $11 million, roughly half of the funds had already been misappropriated. During this time, Rinsch reportedly assured Netflix that the production was “awesome and moving forward really well.” Meanwhile, he splurged on luxury items, including a fleet of Rolls-Royces and a Ferrari, racking up debts of $1.8 million on credit cards alone. His lavish spending extended to $3.7 million on furniture and antiques, alongside an astonishing $933,000 on high-end mattresses and bedding.

Adding to the gravity of his legal troubles, Rinsch allegedly directed $1 million towards hiring lawyers, presumably to pursue more funding from Netflix and even to assist in a divorce. Insiders have revealed that his mental state began to deteriorate after signing the Netflix deal, with Rinsch reportedly claiming he could predict natural disasters and had uncovered secrets related to COVID-19 transmission.

Rinsch’s initial appearance in court revealed his nonchalant attitude when asked if he had read the detailed 12-page indictment; he answered, “Not cover to cover.” Released on a $100,000 bail, Rinsch is now awaiting a trial in New York, where he faces a maximum sentence of 20 years behind bars if convicted.

Can this wild Hollywood scandal get any crazier? Be sure to stay tuned as this story unfolds!