Netflix Filmmaker Loses $11 Million in Stock Trading Misadventure

• Netflix's $11 Million Investment Wasted by Filmmaker Carl Erik Rinsch
• From Screenplay to Stock Trading
• Dispute Between Netflix and Rinsch
• The COVID-19 pandemic and High-Risk Investments
• Rinsch's Erratic Behavior and the Downfall of the Show
• A Rare Occurrence in Big Hollywood Productions

Netflix's $11 Million Investment Wasted by Filmmaker Carl Erik Rinsch

Netflix, the streaming powerhouse, had invested $11 million in a sci-fi show to be produced by filmmaker Carl Erik Rinsch. However, instead of creating the anticipated show, Rinsch reportedly squandered the investment in risky stock trading.

From Screenplay to Stock Trading

According to reports, Netflix had initially given a company $11 million to create a movie, but the funds were eventually depleted through stock options trading. Despite spending over $40 million on Rinsch's show and providing him with almost complete budgetary and creative control, Netflix never received a single finished episode.

Dispute Between Netflix and Rinsch

Currently, Rinsch and Netflix are engaged in a confidential arbitration process started by Rinsch. He alleges a breach of contract by the company and is demanding at least $14 million in damages. Netflix, on the other hand, denies owing anything to Rinsch. It is claimed that the company even transferred an additional $11 million to the filmmaker's production company, escalating its total expenditure to over $55 million.

The COVID-19 pandemic and High-Risk Investments

Reports indicate that during the COVID-19 pandemic, Rinsch transferred $10.5 million of the $11 million to his personal brokerage account at Charles Schwab. He reportedly placed risky bets on the stock market using options.

Rinsch's Erratic Behavior and the Downfall of the Show

Members of the cast and crew of the Conquest series report that Rinsch began acting erratically shortly after signing the production contract with Netflix. The global pandemic seemed to exacerbate this behavior, contributing to the ultimate halt of the show's production.

A Rare Occurrence in Big Hollywood Productions

While issues during large Hollywood productions are not unheard of, this particular situation is unusual due to the sizeable investment and the complete absence of a delivered show. Netflix's spokesperson, Thomas Cherian, indicated that the company had provided significant funding and other support to Rinsch's series. Eventually, however, it was clear that Rinsch was not going to complete the agreed project, leading the company to write off the project.

Edited by Jonathan Stoker