• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Editor's Pick

LA man found guilty of scamming investors, Hollywood stars out of over $20 million to fuel lavish lifestyle

by April 5, 2025
written by April 5, 2025

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. 

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.

As Fritsch pitched the StarClub offering to investors, he made several false and fraudulent claims, including that his company was on the verge of entering commercial deals with, or obtaining investments and buyout offers from major media companies such as Disney – that StarClub earned $15 million in revenue in 2015.

Instead of using the funds to expand the company or improve its technology, Fritsch purchased luxury cars like a McLaren and a Rolls-Royce, renovated his multimillion-dollar Malibu home and even made costly upgrades to his yacht.

Law enforcement seized the yacht, McLaren and the Rolls-Royce, and they are subject to forfeiture proceedings.

One victim invested more than $20 million in StarClub over the course of two years, based on Fritsch’s false statements, according to the Department of Justice. 

This victim also introduced Fritsch to other victims who invested millions of additional funds in the company. Prosecutors estimate that Fritsch caused at least approximately $25 million in victim losses because of his scheme.

Sources close to Fox News Digital have learned that Hollywood celebrities, including Enrique Iglesias and Tyrese Gibson, may be involved in this high-profile scheme. 

In 2014, singer and actor Tyrese hosted a private party for StarClub Inc. Actresses including Caitlin O’Connor, Elise Neal, rapper Trinidad James and model Khadija Neumann attended the star-studded event.

Meanwhile, Fritsch has been sued in Los Angeles County Superior Court three times over allegations of fraudulent financial schemes. 

Music executive Haqq Islam and his company sued StarClub and Fritsch in 2013, claiming breach of contract and fraud, according to The Los Angeles Times. 

Islam alleged that Fritsch owed him $750,000 for luring Hollywood stars such as Jessica Simpson to meet with Fritsch and consider participating in StarClub’s business ventures, according to reporting by Courthouse News Service.

Reps for Tyrese, Iglesias and Simpson did not immediately respond to Fox News Digital’s request for comment. 

The jury found Fritsch not guilty of a second wire fraud count. He remains free on bond.

A sentencing hearing is scheduled for Fritsch in the upcoming months. Fritsch faces a statutory maximum sentence of 20 years in federal prison.

This post appeared first on FOX NEWS
0 comment
0
FacebookTwitterPinterestEmail

previous post
Buffett denies rumors after Trump shares wild claim that investor backs president crashing market
next post
Speaker Johnson moves on Senate’s Trump budget bill as House GOP rebels threaten to defect

related articles

Iran still wants a nuclear weapon despite ‘serious...

July 6, 2025

Democrats project doom and gloom, not celebration, with...

July 5, 2025

Xi Jinping’s surprise no-show at BRICS Summit fuels...

July 5, 2025

Iran regime escalates repression toward ‘North Korea-style model...

July 4, 2025

This July 4th, a family waits: American hostage’s...

July 4, 2025

President Trump to honor Iran strike flight team...

July 4, 2025

North Korea lashes out after Trump DOJ exposes...

July 4, 2025

Saudi defense minister secretly meets with Trump to...

July 4, 2025

Trump administration swarms SCOTUS with emergency requests and...

July 4, 2025

Trump administration torpedoes SCOTUS with emergency requests and...

July 3, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • The dollar index could soon fall to a new annual low

    August 19, 2024
  • Former high-level United Nations officials to launch ‘DOGE-UN’ to highlight agency inefficiencies

    December 1, 2024
  • Trump’s tariff threats go beyond ‘trade agreement’ to advance American interests: expert

    December 9, 2024
  • Russia sounds off on Trump’s threat to retake the Panama Canal

    January 21, 2025
  • Trump picks Steven Cheung for communications director, Sergio Gor for personnel office director

    November 15, 2024

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 4

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (5,252)
  • Investing (634)
  • Stock (832)

Latest Posts

  • Trump scores major win as Senate installs IRS critic to lead the agency

    June 12, 2025
  • Zelenskyy answers whether he’s willing to cede Crimea, other territory in peace deal

    November 20, 2024
  • House Republican calls for third Trump term over passage of ‘historic’ tax bill

    July 3, 2025

Recent Posts

  • Putin says Trump plans for Greenland ‘has nothing to do’ with Russia

    March 28, 2025
  • Vienna tops Global Livability Index 2024; Damascus, Tripoli, Caracas among worst-performing cities

    July 12, 2024
  • What is the Electoral College? How does it work?

    November 3, 2024

Editor’s Pick

  • House GOP doubts grow as Johnson digs in on funding fight: ‘Playing with a government shutdown’

    September 10, 2024
  • Over-regulation partly to blame for ‘wildly expensive’ research costs, says medical executive

    February 14, 2025
  • Wes Moore, considered a rising star among Democratic governors, endorses Kamala Harris

    July 22, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock