A Malibu man has been found guilty of wire fraud after a jury determined he misled investors out of approximately $25 million. Bernhard Eugen Fritsch, 63, was convicted following a nine-day trial. He faces a potential prison sentence of up to 20 years. The U.S. Department of Justice announced the verdict, noting that the jury acquitted him on a second charge of wire fraud.
Fritsch allegedly raised funds for his tech company, StarClub, claiming he was developing an app called StarSite. This app was meant to help celebrities and influencers earn money through sponsored social media posts. To attract investors, he falsely asserted that major media companies and a global investment bank had invested in his company and claimed it had generated $15 million in revenue in 2015. He even suggested he was close to securing a deal with Disney.
Prosecutors argued that Fritsch never intended to use the investors’ money for the promised tech project. Instead, he spent the funds on a lavish lifestyle, which included luxury cars like a McLaren and a Rolls-Royce, as well as renovations to his Malibu mansion located near Carbon Beach.
The fallout from Fritsch’s actions has been significant. Authorities believe that around $25 million was lost by investors, with one individual alone contributing over $20 million. Law enforcement has seized his yacht and luxury vehicles as part of the investigation.
In addition to the criminal case, Fritsch has faced multiple civil lawsuits in Los Angeles County related to allegations of fraudulent financial schemes. These lawsuits include claims from record industry executive Haqq Islam, who accused Fritsch of fraud and breach of contract in a deal involving celebrity endorsements.
Fritsch remains free on bond and is scheduled for a sentencing hearing in the coming months. His attorney has not yet commented on the case.