OAN Staff Abril Elfi
12:59 PM – Sunday, April 6, 2025
A man from Malibu has been convicted after scamming over $20 million from investors and Hollywood stars.
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According to the Department of Justice (DOJ), Bernhard Eugen Fritsch, 63, was found guilty of one count of wire fraud after defrauding investors out of more than $20 million by lying to them about his technology company’s financial performance.
Fritsch, the founder and CEO of StarClub Inc., had falsely promised that his app would help celebrities and social media influencers monetize their brand endorsements.
“From 2014 to 2017, Fritsch raised more than $20 million from investors to build out the company’s app, also known as StarSite, claiming celebrities and influencers would use the technology to post content on social media sites such as Facebook. At the same time, the app would deliver advertising content and share ad revenue with the celebrity poster,” the DOJ stated.
“While pitching the StarClub offering to investors, Fritsch made several false and fraudulent claims, including that StarClub was on the verge of entering commercial deals with, or obtaining investments and buyout offers from major media companies such as Disney; that StarClub had earned $15 million in revenue in 2015; and that StarClub’s current investors included major media companies and a global investment banking firm,” they continued.
Instead of using the money to develop the software, Fritsch spent millions of dollars on luxury cars, yachts, and a multimillion-dollar Malibu estate according to the statement.
Law enforcement confiscated his yacht, McLaren, and Rolls-Royce, which are now subject to forfeiture proceedings.
According to the Department of Justice, one victim invested more than $20 million in StarClub over two years as a result of Fritsch’s misleading statements. This victim also promoted Fritsch to other victims, who invested millions more in the company.
Prosecutors estimate that Fritsch’s fraud cost victims at least $25 million and he has been sued in Los Angeles County Superior Court three times over allegations of fraudulent financial schemes.
A sentencing hearing is scheduled for Fritsch in the upcoming months. If convicted, he faces a statutory maximum sentence of 20 years in federal prison.
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