Hollywood director Karl Erich Reinsch was found guilty in federal court in Manhattan of defrauding Netflix of $11 million intended for a sci-fi television series that was never made.
A federal jury found the 48-year-old manager guilty of multiple counts of wire fraud and money laundering, after prosecutors said he stole money for personal use, including high-risk stock trades, cryptocurrency investments, luxury cars, watches, and stays at five-star hotels in California and Spain.
The series, originally titled “White Horse” and later renamed “Conquest,” has already received nearly $44 million in pre-funding. Wrench began filming six short episodes with the support of his mentor, Keanu Reeves, before pitching the project to studios.
Between late 2019 and early 2020, he requested an additional $11 million to finish production. He transferred the money to personal accounts, lost about half of it through risky investments, then used the remaining money on cryptocurrencies and lavish spending, prosecutors said.
Court documents displays He bought five Rolls Royces, a Ferrari, watches, high-end clothing, luxury mattresses and bedding, and paid off $1.8 million in personal credit card debt, all with money Netflix thought was earmarked for the series. Wrench argued at trial that the dispute was contractual and that he viewed the payments as compensation for work already performed.
US Attorney for the Southern District of New York Jay Clayton said the conviction comes after a week-long trial before US District Judge Jed S. Rakov. He added,
“Karl-Erik Reinsch took $11 million intended for a TV show and gambled it on speculative stock options and cryptocurrency transactions. Today’s conviction shows that when someone steals from investors, we will track the money and hold them accountable.”
The charges carry maximum penalties of 90 years in prison, although the actual sentence is expected to be shorter. Rensch is scheduled to be sentenced on April 17, 2026.
Rinse something Arrested In March of this year in West Hollywood, California. Previous reports suggests He invested in the popular meme currency Dogecoin (DOGE) and made $27 million in profits.
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