A Malibu man faces up to 20 years in federal prison after being convicted of wire fraud and a scheme deceiving investors out of nearly $25 million. 63-year-old Bernhard Eugen Fritsch marketed a tech platform centered on a start-up called StarClub. His pitch for an app, StarSite, he claimed was to help social media influencers better monetize their endorsements. However, the proposed StarSite never materialized as promised. Between 2014 and 2017, Fritsch falsely claimed that StarClub was on the verge of securing major deals and investments from large companies, including Disney—a claim prosecutors say was completely fabricated.
In addition to these misrepresentations, prosecutors stated Fritsch told investors that StarClub had generated $15 million in revenue in 2015, which was untrue. His scheme proved effective: one investor alone contributed over $20 million and introduced Fritsch to others who collectively added millions more. Rather than using the funds to develop the company as promised, Fritsch diverted large portions of the money to fund his extravagant lifestyle. Prosecutors revealed he spent investor funds on luxury vehicles—including a McLaren and a Rolls-Royce—upgrades to his yacht, and lavish renovations to his Malibu mansion near Carbon Beach.
Federal authorities have since seized the vehicles and yacht, which are now subject to forfeiture proceedings. Fritsch was convicted this week in Los Angeles on one count of wire fraud and acquitted on another. A sentencing date has not yet been set.