Director Carl Erik Rinsch is said to have redirected $4 million from the budget of his Netflix series, Conquest, into Dogecoin (DOGE). This move reportedly led to a substantial $27 million profit, according to a recent report.
Now, Rinsch is allegedly pursuing an extra $14 million from Netflix through a confidential arbitration proceeding. This information was reported by The New York Times on November 22.
The article delves into the backstage developments surrounding Rinsch’s sci-fi show, funded by Netflix with $55 million. However, despite the substantial budget, the series has not released any episodes.
In March 2020, 16 months after Netflix approved Rinsch’s project and initially allocated $44 million, the director requested additional funds. Netflix, responding to the request, provided an extra $11 million. However, this came with the condition that Rinsch would need to complete the series.
Director Allegedly Diverts $10.5M of Netflix Budget into Stock Market and Dogecoin
Financial documents, disclosed to The New York Times, reveal that Rinsch utilized $10.5 million of the supplementary funding. Within a few weeks, he engaged in stock market speculation, incurring losses of nearly $6 million. This was primarily through options trading on pharmaceutical companies and the S&P 500.
Left with just over $4 million, Rinsch transferred the remaining funds to the Kraken crypto exchange and invested the entire amount in DOGE. When he cashed out in May 2021, he reportedly withdrew approximately $27 million, according to an account statement reviewed by The New York Times.
In a conversation with a Kraken representative, Rinsch expressed gratitude, stating, “Thank you and god bless crypto.” Subsequently, he purportedly spent nearly $9 million on opulent furniture, designer apparel, a luxury watch exceeding $380,000 in value, five Rolls Royces, and a Ferrari, as disclosed by a forensic accountant hired by Rinsch’s ex-wife during divorce proceedings.
Allegations of Breach of Contract, Extortion, and a $14 Million Dispute
Rinsch initiated a confidential arbitration against Netflix, alleging a breach of contract and claiming $14 million in damages. Netflix, in turn, denies any owed amount, characterizing Rinsch’s demands as an extortion attempt.
During a deposition, Rinsch argued that the items acquired during his lavish spending spree were props for the Conquest series. Later, in the legal dispute against Netflix, he asserted that the money was rightfully his, contending that an additional $14 million is owed to him.
A ruling on the case is anticipated soon, having been presented before an arbitrator in early November.
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