A man from Malibu has been convicted of more than $20 million for cheating investors and Hollywood stars False claims About his celebrity app’s business performance.
Fox News Digital learned that Bernhard Eugen Fritsch, founder and CEO of Santa Monica-based tech company Starclub Inc., was responsible for elaborate fraud, which intensified his luxurious lifestyle.
According to the company Ministry of Justice.
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He wrongly promised that the company’s app Starsite will help celebrities and social media influencers profit from its brand recognition.
Host Tyrese Gibson (L) and Starclub Bernhard Fritsch founder and CEO attended Starclub Inc.’s private gathering on November 11, 2014 by Tyrese Gibson. (Mike Windle/Getty images are used for StarClub)
Instead of using the funds for application development, Fritsch spent millions of dollars on luxury cars, yachts and millions of dollars on Malibu building, the release said.
From 2014 to 2017, Fritsch raised more than $20 million to market Starclub as a game rule for the entertainment industry. He claims the app will allow celebrities to easily post branded content on social media, earn revenue from advertising, and share profits with influencers.
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When Fritsch offered investors a STARCLUB application, he filed several false and fraudulent claims, including his company’s impending entry into a commercial deal or obtaining investment and acquisition offers from similar major media companies. As Disney – The Starclub revenue in 2015 was $15 million.
Model Khadija Neumann (L) and the founder and CEO of Starclub Bernhard Fritsch attended a private gathering at Starclub Inc. (Mike Windle/Getty images are used for StarClub)
Rather than using the funds to expand the company or improve its technology, Fritsch bought luxury cars like McLaren and Rolls-Royce, renovated his multi-million-dollar Malibu home and even made expensive upgrades to his yacht.
Law enforcement occupied the yacht, McLaren and Rolls-Royce, and they were subject to the confiscation process.
According to Fridge’s false statement, a victim invested more than $20 million in Starclub over two years.
The victim also introduced the victim to other victims who have invested millions of dollars in the company. Prosecutors estimate that Fridge caused at least about $25 million in victim losses due to the plan.
In 2014, singer and actor Tyrese held a private party for Starclub Inc. (Mike Windle/Getty images are used for StarClub)
Sources close to Fox News Digital learned that Hollywood celebrities, including Enrique Iglesias and Tyrese Gibson, may be involved in the high-profile program.
In 2014, singer and actor Tyrese held a private party for Starclub Inc. Including Caitlin O’Connor, Elise Neal, rapper Trinidad James and model Khadija Neumann participated in the Star event.
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Meanwhile, Fritsch was sued in Los Angeles County Superior Court for allegations of fraudulent financial plans.
According to reports Los Angeles Times.
Islam says Fritsch owe him $750,000 because they attracted Hollywood stars such as Jessica Simpson to meet with Fritsch and consider participating in the Starclub business. Court News Service.
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Representatives of Tyrese, Iglesias and Simpson did not immediately respond to a request for comment from Fox News Digital.
The jury found Fridge had no second wire fraud charge. He is still free on Bond.
In the coming months, Fridge is scheduled for a sentencing hearing. Fritsch faces a statutory maximum sentence of 20 years in federal prison.
