NEW YORK (AP) — A Hollywood writer-director was apprehended on Tuesday amidst allegations of orchestrating an elaborate scheme that allegedly defrauded Netflix of a staggering $11 million associated with a science fiction series that never materialized. The accused, Carl Erik Rinsch, purportedly diverted these funds toward speculative cryptocurrency investments and a series of extravagant acquisitions, notably encompassing a fleet of Rolls-Royces and a Ferrari.

Rinsch, who garnered some recognition for helming the film “47 Ronin,” faces charges including wire fraud and money laundering as federal prosecutors assert that he engaged in a duplicitous plot to exploit the streaming behemoth. The specific nature of the allegations suggests a calculated breach of trust, wherein Rinsch received an initial payment of approximately $44 million for a half-finished project entitled “White Horse,” subsequently requesting and receiving an additional $11 million under the pretext of needing further funds to finalize production.

In a stark deviation from his stated intentions, Rinsch allegedly appropriated the supplementary financial resources for personal gain, promptly transferring the capital to a private brokerage account. There, he embarked on a series of ill-fated investments, resulting in a loss of nearly 50% of the injected $11 million within a mere two months, as outlined by prosecutors.

Subsequently, the filmmaker reportedly channeled the remaining funds into the cryptocurrency market, a maneuver that fortunately yielded profits, which were later funneled into his personal bank account, as detailed in the indictment.

Following this financial escapade, Rinsch is said to have engaged in an extravagant spending spree totaling approximately $10 million, which encompassed around $1.8 million in credit card payments; $1 million allocated to legal fees in pursuit of additional funds from Netflix; $3.7 million dedicated to furniture and antique acquisitions; $2.4 million expended on luxury vehicles; and $652,000 spent on high-end watches and apparel.

Rinsch, aged 47, was apprehended in West Hollywood and is anticipated to make an appearance in federal court later on Tuesday, with his indictment filed in New York.