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

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.

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.

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. 

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.