The Malibu native was found guilty of fraudulent investors and Hollywood stars. False claims About business performance of his celebrity apps.
Fox News Digital is Bernhard Eugen Fritsch, CEO of Starclub Inc., the founder and CEO of Starclub Inc., a Santa Monica-based high-tech company, is held responsible for the elaborate scams that promote his luxurious lifestyle.
Fritche, 63, said he was found guilty by a ju-search for one wire fraud on Thursday after it was revealed he lied to investors about the economic success and potential futures of a high-tech company. Ministry of Justice.
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He mistakenly promised that the company’s app Starsite would help celebrities and social media influencers monetize their brand’s support.
On November 11th, 2014, he will be founder and CEO of Starclub Bernhard Fritsch, hosted by Tyrees Gibson. (MikeWindle/Getty Images for Starclub)
Instead of using funds to develop the app, Fritsch spent millions on luxury cars, yachts and multi-million dollar Malibu mansions, the press release said.
From 2014 to 2017, Fritsch raised over $20 million and sold Starclub as a game changer in the entertainment industry. He claimed that the app allows celebrities to easily post branded content on social media, generate revenue from ads, and share profits with influencers.
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When Fritsch pitched Starclub offerings to investors, he made several false and fraudulent claims, including that his company was on the verge of taking part in commercial transactions and getting investment and acquisition offers from major media companies. As Disney -The Starclub earned $15 million in revenue in 2015.
Model Khadija Neumann (L) and Founder and CEO of Starclub Bernhard Fritsch will be taking part in a private party at Starclub Inc. (MikeWindle/Getty Images for Starclub)
Instead of using the funds to expand the company or improve the technology, Fritsch purchased luxury cars like McLaren and Rolls-Royce, renovated multi-million dollar Malibu homes and costly upgrades to the yacht.
Law enforcement agencies seize yachts, McLarens and Rolls-Royces and are subject to forfeiture procedures.
According to the Justice Department, one victim invested more than $20 million in Starclub over two years based on Fritsch’s false statement.
The victim also referred Fritsch to other victims. Other victims invested millions of additional funds in the company. Prosecutors estimate that Fritsch caused at least about $25 million in victim loss due to his plans.
In 2014, singer-actor Tyreese hosted a private party for Starclub Inc. (MikeWindle/Getty Images for Starclub)
Sources close to Fox News Digital know that Hollywood celebrities such as Enrique Iglesias and Tyrese Gibson may be involved in this famous scheme.
In 2014, singer-actor Tyreese hosted a private party with actresses such as Caitlin O’Connor, Elise Neal, rapper Trinidad James and model Kadija Neumann, including Caitlin O’Connor, Elise Neal and rapper Kadija Neumann.
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Meanwhile, Fritsch has been sued three times in Los Angeles County Superior Court for allegations of fraudulent financial schemes.
Music executive HAQQ Islam and his company sued Starclub and Fritsch in 2013, alleging contracts and fraud violations. Los Angeles Times.
Islam is considering meeting with Fritsch and joining a Star Club business venture to seduce Hollywood stars such as Fritsch Simpson, so Fritsch claims he owes $750,000. Court News Service.
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Reps for Tyrese, Iglesias and Simpson did not immediately respond to Fox News Digital’s request for comment.
The ju judge discovered that Fritsch was not a crime of a second wire fraud count. He remains free in bonds.
A ruling hearing is scheduled for Fritsch for the coming months. Fritsch faces a statutory maximum sentence of 20 years in federal prison.
