Federal authorities arrested filmmaker Carl Erik Rinsch on Tuesday, charging him with defrauding Netflix out of $11 million for a science fiction series that was never completed. Prosecutors did not name Netflix in the indictment, referring only to “a subscription video on-demand streaming service,” but the case has been widely publicized since The New York Times reported on the allegations in November 2023.

Between 2018 and 2019, Netflix paid Rinsch’s company $44 million for the unproduced series White Horse, later renamed Conquest. In March 2020, the filmmaker secured an additional $11 million after claiming more funds were needed to complete the project. Instead of using the money for production, prosecutors said Rinsch funneled it through multiple accounts, consolidating it into a personal brokerage fund. He then made speculative investments, losing half the funds in two months before spending the rest on cryptocurrency, luxury items, and personal expenses, including legal fees related to his case against Netflix and his divorce. His purchases included $3.8 million on furniture and antiques, $2.4 million on five Rolls-Royces and a Ferrari, and $652,000 on watches and clothing.

Prosecutors allege Rinsch never returned the money, and Netflix canceled the project in early 2021. His arrest follows a legal battle in which an arbitrator ruled against him in May 2024, awarding Netflix $8.8 million after he claimed the company had breached their contract and owed him at least $14 million. The ruling found that none of Rinsch’s expenditures were necessary for production.

Rinsch, who was arrested in West Hollywood, faces multiple charges, including wire fraud, money laundering, and engaging in unlawful monetary transactions. The Complex Frauds and Cybercrime Unit is handling the case. A spokesperson for Netflix declined to comment, and it remains unclear if Rinsch has legal representation.