A man from Malibu has been convicted of scamming investors and Hollywood stars out of more than $20 million through false claims about his celebrity app’s business performance.
Bernhard Eugen Fritsch, the founder and CEO of StarClub Inc., a Santa Monica-based tech company, was held accountable for an elaborate fraud that fueled his lavish lifestyle, Fox News Digital has learned.
Fritsch, 63, was found guilty by a jury on Thursday of one count of wire fraud after it was revealed that he lied to investors about the financial success and future potential of his tech company, according to the Department of Justice.
HOLLYWOOD DIRECTOR ARRESTED FOR ALLEGEDLY CHEATING NETFLIX OUT OF $11M
He falsely promised that the company’s app, StarSite, would help celebrities and social media influencers monetize their brand endorsements.
Instead of using the funds for the app’s development, Fritsch spent millions on luxury cars, yachts, and a multimillion-dollar Malibu mansion, the press release stated.
From 2014 to 2017, Fritsch raised over $20 million, pitching StarClub as a game-changer for the entertainment industry. He claimed the app would allow celebrities to easily post branded content on social media, generate revenue from advertising and share profits with influencers.
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