Entertainment
Tech CEO Found Guilty After Scamming Celebs Out of $20 Million With Fake App Scheme
A tech company founder with stars in his eyes now faces up to 20 years in federal prison for scamming Hollywood stars into helping him line his pockets with millions by lying about his track record and his celeb app’s prospects, according to the Justice Dept.
Tinseltown stars who fell for the con reportedly may include Jessica Simpson, Enrique Iglesias and Tyrese Gibson. Others who showed up for one of the scam’s promotional events include actresses Caitlin O’Connor and Elise Neal, rapper Trinidad James and model Khadija Neumann.
A jury threw the book at Bernhard Eugen Fritsch, the 63-year-old founder and CEO of Santa Monica-based StarClub Inc., convicting him of one count of wire fraud for luring high-wattage names from the entertainment and social media worlds to help tout his StarSite app, promising that their brand endorsements would lead them to big bucks of their own.
But officials say unwary investors who fell for the glitzy celeb endorsements coughed up millions — and that at least $20 million of their cash went right into Fritsch’s own pocket to pay for luxury cars — including a McLaren and a Rolls-Royce — and to fix his yacht and renovate his multimillion-dollar Malibu mansion.
Law enforcement has now seized most of his ill-gotten goodies.
The Justice Dept. says fraudster Fritsch invented a false narrative about how successful his enterprise was and how celebs would profit by sharing branded content through an app that the grifter never built out.
Prosecutors estimate that Fritsch caused at least $25 million in victim losses.
Fritsch, a German national and green card holder, remains free on bond until sentencing.
