US prosecutors have charged filmmaker Carl Erik Rinsch with fraud and money laundering, alleging he misused$11 million of Netflix's funds on risky investments instead of producing a sci-fi series.

The US Department of Justice (DOJ) unsealed the indictment on 18 March, stating that Rinsch could face up to 20 years in prison.

Authorities claim Netflix provided the filmmaker with funds in 2020 to finance the production of Conquest, originally titled White Horse. Instead of completing the project, he reportedly used$10.5 million to make speculative trades, losing over$5.5 million on share options.

However, he made significant gains in cryptocurrency, later purchasing luxury items, including five Rolls-Royces, a Ferrari, and high-end watches.

Prosecutors also allege that Rinsch used nearly$1.8 million to pay off credit card bills and$1 million for legal fees in his lawsuit against Netflix.

The streaming giant cancelled Conquest in early 2021, citing concerns over his erratic behaviour. Despite receiving at least$44 million for the show, no episodes have aired.

Rinsch now faces multiple charges, including one count of wire fraud and one count of money laundering, each carrying a maximum sentence of 20 years.

He was arrested on 18 March, with the case assigned to New York federal Judge Jed Rakoff. His lawyer has declined to comment on the matter.

For more information on these topics, visit diplomacy.edu.