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Hollywood filmmaker charged with defrauding Netflix of $11 million
Carl Erik Rinsch at an event in Los Angeles in 2015.
John Sciulli/Getty Images
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John Sciulli/Getty Images
Hollywood filmmaker Carl Erik Rinsch has been charged with defrauding Netflix to the tune of $11 million. He had been working on a TV series for the streamer that was never completed. Instead, according to prosecutors, the 47-year-old director spent the streamer’s funds to speculate on cryptocurrency, stay in high-end hotels and rentals and buy luxury cars.
Police in West Hollywood arrested him this week. The FBI’s New York Field Office and the Acting U.S. Attorney of the Southern District of New York indicted Rinsch on charges of wire fraud, money laundering and unlawful monetary transactions. Those charges could land him in prison for decades.
The saga began in 2018, when Netflix agreed to pay Rinsch to make White Horse — later named Conquest — a science fiction TV series about an artificial, humanlike species called the “Organic Intelligent.” The series was reportedly a passion project for Rinsch and his then-wife Gabriela Roses Bentancor, and was already underway. According to a 2023 New York Times investigation, the streamer gave Rinsch a coveted “final cut” deal to make decisions about the project. Before that, Rinsch had only made one big budget feature — 47 Ronin, a samurai story starring Keanu Reeves that bombed at the box office.
Between 2018 and 2019, Netflix paid $44 million for the series. Rinsch resumed shooting episodes in Brazil, Uruguay and Budapest. Then, according to prosecutors, he asked the streamer for another $11 million to complete the production.
That never came to be.
The New York Times reported that during production, Rinsch’s behavior grew more and more “erratic”; crew members complained about his onset behavior, and privately, his wife filed for divorce in 2020.
The FBI and the Acting U.S. Attorney of the Southern District of New York say that instead of completing the promised television series, Rinsch spent that extra $11 million on himself — speculating on securities and cryptocurrency and living the high life. FBI assistant director Leslie Backschies said in a statement that Rinsch used the money “to finance lavish purchases and personal investments.” According to the indictment, which identifies Netflix as “Streaming Company-1,” that included staying in luxury hotels, and buying millions of dollars worth of high-end furniture and antiques and hundreds of thousands in a watch and high-end clothing, along with five Rolls-Royces and a Ferrari.
Even after losing money on the stock market, Rinsch told Netflix that his series was “awesome and moving forward really well,” according to the indictment.
Though Rinsch claimed that the streamer owed him money after Netflix cancelled the show, an arbitrator ruled in Netflix’s favor last year, requiring the director to pay the company $11.8 million. The streamer declined to comment to NPR about Rinsch. His attorney Anne Carney told NPR she can’t discuss the case. According to the Associated Press, Rinsch appeared in federal court in Los Angeles with shackles on his arms and legs and agreed to post a $100,000 bond. The Associated Press reports that his attorney Carney said at that hearing that she had not yet seen the prosecution’s evidence against Rinsch and “the allegations in this case are purely financial.”


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Pentagon says Navy secretary is leaving, the latest departure of a top defense leader
Secretary of the Navy John Phelan speaks, as President Trump listens, at Trump’s Mar-a-Lago club on Dec. 22 in Palm Beach, Fla.
Alex Brandon/AP
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WASHINGTON — Navy Secretary John Phelan is leaving his job, the Pentagon abruptly announced Wednesday, the first head of a military service to depart during President Trump’s second term but just the latest top defense leader to step down or be ousted.
No reason was given for the unexpected departure of the Navy’s top civilian official, coming as the sea service has imposed a blockade of Iranian ports and is targeting ships linked to Tehran around the world during a tenuous ceasefire in the war. Another Trump loyalist is taking over as acting head of the Navy: Undersecretary Hung Cao, a 25-year Navy combat veteran who ran unsuccessful campaigns for the U.S. Senate and House in Virginia.


Phelan’s departure is the latest in a series of shakeups of top leadership at the Pentagon, coming just weeks after Defense Secretary Pete Hegseth fired the Army’s top uniformed officer, Gen. Randy George. Hegseth also has fired several other top generals, admirals and defense leaders since taking office last year.
The firings began in February 2025, when Hegseth removed military leaders, including Adm. Lisa Franchetti, the Navy’s top uniformed officer, and Gen. Jim Slife, the No. 2 leader at the Air Force. Trump also fired Gen. Charles “CQ” Brown Jr. as chairman of the Joint Chiefs of Staff.
Showing how sudden the latest move was, Phelan had addressed a large crowd of sailors and industry professionals on Tuesday at the Navy’s annual conference in Washington and spoke with reporters about his agenda. He also hosted the leaders of the House Armed Services Committee to discuss the Navy’s budget request and efforts to build more ships, according to a social media post from his office.
Pentagon spokesman Sean Parnell said in a post on X that Phelan was “departing the administration, effective immediately.”
Phelan had been a major Trump donor
Phelan had not served in the military or had a civilian leadership role in the service before Trump nominated him for secretary in late 2024. He was seen as an outsider being brought in to shake up the Navy.
Hung Cao speaks during the Republican National Convention on July 16, 2024, in Milwaukee.
Matt Rourke/AP
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Phelan was a major donor to Trump’s campaign and had founded the private investment firm Rugger Management LLC. According to his biography, Phelan’s primary exposure to the military came from an advisory position he held on the Spirit of America, a nonprofit that supported the defense of Ukraine and the defense of Taiwan.
The Associated Press could not immediately reach Phelan’s office for comment. The White House did not answer questions and instead responded by sending a link to Parnell’s statement.
Phelan is leaving during a busy time for the Navy. It has three aircraft carriers deployed in or heading to the Middle East, while the Trump administration says all the armed forces are poised to resume combat operations against Iran should the ceasefire expire.
The Navy also has maintained a heavy presence in the Caribbean, where it has been part of a campaign of strikes against alleged drug boats. It also played a major role in the capture of Venezuelan leader Nicolás Maduro in January.
New acting Navy secretary ran unsuccessful bids for Congress
Taking over as acting secretary is Cao, who ran a failed U.S. Senate bid in Virginia to try to unseat Democratic Sen. Tim Kaine in 2024. He had Trump’s endorsement in the crowded Republican primary and gave a speech at the 2024 Republican National Convention.
Cao’s biography includes fleeing Vietnam with his family as a child in the 1970s. In a campaign video for his Senate bid, he compared Vietnam’s communist regime during the Cold War to the administration of Democratic President Joe Biden.
During his one debate with Kaine, Cao criticized COVID-19 vaccine mandates for service members as well as the military’s diversity, equity and inclusion efforts.
“When you’re using a drag queen to recruit for the Navy, that’s not the people we want,” Cao said from the debate stage. “What we need is alpha males and alpha females who are going to rip out their own guts, eat them and ask for seconds. Those are the young men and women that are going to win wars.”
Trump and Hegseth have railed against DEI in the military, banning the efforts and firing people accused of supporting such programs.
When he ran for Congress in Virginia in 2022, Cao expressed opposition to aid for Ukraine during a debate against his Democratic opponent.
“My heart goes out to the Ukrainian people. … But right now we’re borrowing $55 billion from China to pay for the war in Ukraine. Not only that, we’re depleting our national strategic reserves,” Cao said.
Cao graduated from the prestigious Thomas Jefferson High School for Science and Technology in Alexandria, Virginia, before attending the U.S. Naval Academy.
He was commissioned as a special operations officer and went on to serve with SEAL teams and special forces in Iraq, Afghanistan and Somalia before retiring at the rank of captain, according to his Senate campaign biography.
Cao also earned a master’s degree in physics and had fellowships at the Massachusetts Institute of Technology and Harvard University.
Since becoming Navy undersecretary, Cao has championed returning to duty service members that refused a Biden-era mandate to take the COVID-19 vaccine.
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California Candidates to Appear in First Major Debate After Swalwell
Candidates in California’s volatile race for governor will meet Wednesday night for the first televised debate since Eric Swalwell dropped out, each looking to seize momentum in the tight contest.
The debate, being held at the television studio of KRON4 in San Francisco, will include four Democrats and two Republicans who are tightly bunched in recent polls, with many voters still undecided less than six weeks before the June 2 primary.
Mr. Swalwell, a Democrat, had just begun to emerge as a Democratic front-runner when his campaign swiftly collapsed after he was accused of sexual assault in news reports on April 10.
Candidates have taken relatively few risks so far in debates around the state, but every candidate is now eyeing a chance to jump to the front of the pack.
“Even though we have seen some movement in the last couple of weeks, it continues to be a fairly crowded, fractured field,” said Sara Sadhwani, an assistant professor of politics at Pomona College. “So candidates need to be able to grab attention in a debate like this.”
The debate comes as Xavier Becerra, a Democrat and former California attorney general, has enjoyed a surge of support in polls since Mr. Swalwell dropped out of the race.
Mr. Becerra and Matt Mahan, the mayor of San Jose, did not originally meet the threshold to participate in Wednesday’s debate when Mr. Swalwell was running. But they both qualified after receiving enough support in a follow-up poll that debate organizers commissioned once Mr. Swalwell had dropped out.
The other Democrats scheduled to participate are Tom Steyer, a former hedge fund manager, and Katie Porter, a former congresswoman, each of whom have been polling near the top of the Democratic field for several weeks. The Republicans in the debate are Steve Hilton, a former Fox News host who has been endorsed by President Trump, and Chad Bianco, the sheriff of Riverside County.
All candidates run on the same ballot in California’s nonpartisan primary, with the two who receive the most votes advancing to the general election, regardless of their party affiliation. The large number of Democratic candidates has created fear among state party leaders that their voters could splinter, potentially allowing two Republicans to sweep the primary in this heavily Democratic state.
The odds of that happening have decreased since Mr. Swalwell dropped out and another Democrat, Betty Yee, withdrew on Monday. But Rusty Hicks, the chairman of the California Democratic Party, still believes there are too many Democrats in the race and has urged those lagging in polls to end their campaigns. (The actual ballot will include 61 candidates for governor, most of whom are completely unknown to voters.)
The messy race to succeed Gov. Gavin Newsom, who cannot run for re-election because of term limits, has played out as the most unpredictable contest California has seen in a generation. It has attracted a sprawling field but no one with the star power of former Gov. Arnold Schwarzenegger or the political might of Mr. Newsom or former Gov. Jerry Brown.
Much of California’s Democratic establishment is still figuring out whom to back in the turbulent race.
Mr. Newsom has not endorsed anyone, saying he trusts voters to elect someone “who reflects the values and direction Californians believe in.” Representative Nancy Pelosi, the influential former House speaker from San Francisco, and Senator Alex Padilla also have not announced their favorites. Senator Adam Schiff endorsed Mr. Swalwell earlier this year but quickly withdrew his support after the accusations against him were published.
On Tuesday, Ms. Yee endorsed Mr. Steyer, praising his work to fight climate change and engage young voters. Mr. Steyer has swamped his competitors with a raft of advertising by pouring $134 million from his personal fortune into his campaign.
Also on Tuesday, Mr. Becerra, whose campaign had appeared to be flailing until Mr. Swalwell dropped out, received the endorsement of Robert Rivas, the Democratic speaker of the California State Assembly. Mr. Rivas said he had encouraged Mr. Becerra to run for governor because he was impressed by his work as California’s attorney general during President Trump’s first term.
“He understands both the policy and the politics,” Mr. Rivas said in an interview. “And he has a track record, in my opinion, of delivering results under pressure.”
The 90-minute debate on Wednesday begins at 7 p.m. PT and will be broadcast and streamed by KRON and other California stations.
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Here’s What the New Virginia House Map Looks Like
Virginians approved a new congressional map on Tuesday that would aggressively gerrymander the state in the Democrats’ favor, giving the party as many as four more U.S. House seats.
The new map draws eight safely Democratic districts and two competitive districts that lean Democratic, according to a New York Times analysis of 2024 presidential results. It leaves just one safe Republican seat, compared with the five seats the G.O.P. holds on the current map.
The proposed map was drawn by Democratic state legislators and approved by Gov. Abigail Spanberger, a Democrat. It eliminates three Republican-held seats in part by slicing the densely populated suburbs in Arlington and Fairfax Counties and reallocating their overwhelmingly Democratic voters into five congressional districts, some stretching more than a hundred miles into Republican areas.
Perhaps the most extreme new district is the Seventh, which begins at the Potomac River and stretches to the west and south in a manner that resembles a pair of lobster claws. Several well-known Virginia Democrats have already announced their candidacies and begun campaigning in the district.
Reid J. Epstein contributed reporting.
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