The Acting United States Attorney for the Southern District of New York, Matthew Podolsky, alongside Leslie Backschies, Assistant Director in Charge of the FBI's New York Field Office, announced charges against Carl Erik Rinsch. Rinsch is accused of defrauding a subscription video on-demand streaming service, referred to as "Streaming Company-1," out of $11 million in connection with a planned science fiction television show titled "White Horse." He was arrested in West Hollywood and will appear before the Central District of California court.
Matthew Podolsky stated: “As alleged, 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. Rinsch instead allegedly used the funds on personal expenses and investments, including highly speculative options and cryptocurrency trading. Rinsch’s arrest is a reminder that this Office and our partners at the FBI remain vigilant in the fight against fraud and will bring those who cheat and steal to justice.”
Leslie Backschies added: “Carl Rinsch allegedly stole more than $11 million from a prominent streaming platform to finance lavish purchases and personal investments instead of completing a promised television series. The FBI will continue to reel in any individual who seeks to defraud businesses.”
According to allegations within the indictment, Rinsch had an agreement with Streaming Company-1 since 2018 for both payment for existing episodes of "White Horse" and funding for its completion. By 2019-2020, he requested additional funds amounting to $11 million which were intended solely for completing the series.
However, it is alleged that these funds were diverted into various personal accounts before being consolidated into his brokerage account. The money was then spent on securities trading—resulting in significant losses—and further expended on cryptocurrency speculation and luxury items such as cars, furniture, legal fees related to suing Streaming Company-1 and divorce proceedings.
Rinsch faces one count each of wire fraud and money laundering—each carrying up to 20 years imprisonment—and five counts related to engaging in monetary transactions derived from unlawful activity with potential sentences up to 10 years each.
Podolsky commended efforts by both FBI agents involved along with IRS Criminal Investigation officers working collaboratively on this case prosecuted under their Complex Frauds & Cybercrime Unit led by Assistant U.S Attorneys Jackie Delligatti David A Markewitz Kevin Mead
All charges are allegations; defendants remain innocent unless proven guilty beyond reasonable doubt