A man from Malibu has been found guilty of defrauding investors and famous Hollywood figures out of over $20 million by making false claims about his celebrity app’s success.
Bernhard Eugen Fritsch, who is the CEO and founder of StarClub Inc., has been held accountable for a complex scheme that financed his extravagant lifestyle. According to reports, the 63-year-old was convicted of wire fraud by a jury, as it came to light that he misled investors regarding the financial stability and future opportunities of his tech company.
Fritsch promised that his app, StarSite, would enable celebrities and social media influencers to profit from their brand endorsements. However, instead of directing the investments toward building the app, he lavishly spent millions on luxury cars, yachts, and a multimillion-dollar mansion in Malibu.
From 2014 to 2017, he raised more than $20 million, marketing StarClub as a revolutionary platform for the entertainment sector. He claimed that the app would allow celebrities to easily create branded content for social media, earn advertising revenue, and share profits with the influencers involved.
While courting investors, Fritsch made numerous false statements, including claims that his company was nearing substantial deals with major media players, including Disney, and that StarClub had generated $15 million in revenue in 2015.
Instead of investing in his company, Fritsch indulged in a life of luxury, acquiring high-end cars like a McLaren and a Rolls-Royce, renovating his upscale Malibu home, and upgrading his yacht. Law enforcement took possession of the luxury items, which are now involved in forfeiture proceedings.
One investor reportedly sunk more than $20 million into StarClub based on Fritsch’s deceptive claims. This investor also introduced others who collectively lost millions due to Fritsch’s fraudulent activities. Prosecutors estimate that his actions resulted in around $25 million in losses for the victims.
It has been reported that notable celebrities, including Enrique Iglesias and Tyrese Gibson, may have connections to this high-stakes scheme. In fact, Fritsch was once celebrated at a private event hosted by Tyrese, drawing a crowd of Hollywood personalities.
Fritsch has a history of legal troubles, having faced three lawsuits in Los Angeles County Superior Court over accusations of fraud. A prominent music executive claimed that Fritsch owed him money for bringing notable stars like Jessica Simpson into StarClub’s orbit.
After the trial, the jury acquitted Fritsch of a second wire fraud charge, and he is currently out on bond. A sentencing hearing is set for the coming months, where he could face up to 20 years behind bars for his fraudulent actions.
