A Malibu man, Bernhard Eugen Fritsch, age 63, has been found guilty of wire fraud after duping investors with his technology company’s app called StarSite, which was pitched as a platform to aid celebrities and social media influencers in monetizing their endorsements. The conviction came after Fritsch lied to raise over $20 million for the app, elaborating that the funds would go to build out the company's technology and general corporate purposes, according to a KTLA news release. Instead, he spent a significant portion of that capital to sustain his luxurious lifestyle, including on luxury cars and home renovations.
During the period between 2014 to 2017, Fritsch claimed that his company, StarClub Inc., was on the cusp of securing deals with major entities such as Disney and was raking in millions in revenue. Raising more than $20 million from investors, he made several fraudulent statements about the app's performance and potential, snagging one investor who alone poured more than $20 million into his scheme, as reflected in the Justice Department's announcement. This individual also led other victims to add millions more to Fritsch's illusory enterprise.
According to evidence from a nine-day trial, Fritsch egregiously misrepresented StarClub's financial state and falsely claimed involvement of significant investors and partners. Officials put the total speculation at about $25 million lost to Fritsch's deception. The discovery of this fraud led to the seizure of his assets, including high-value items such as a yacht and luxury vehicles like a McLaren and a Rolls-Royce, which are now "subject to forfeiture proceedings," according to the KTLA report. The court acquitted Fritsch on a second count of wire fraud.
While remaining free on bond, Fritsch will soon face sentencing, which could amount to a maximum of 20 years in federal prison. The case was managed by Assistant United States Attorneys Monica E. Tait, Sarah S. Lee, and Joseph L. De Leon, under the direction of the FBI. The date for Fritsch's sentencing hearing is anticipated to be scheduled in the coming months, as outlined by the U.S. Attorney’s Office.
