The man found guilty of fraud used investments for a sumptuous lifestyle, say the federals

A man from Malibu was found guilty of having fraudulently obtained around $ 25 million in investments in his technological business and using funds to finance a sumptuous lifestyle that included a Rolls-Royce, Mansion of Carbon Beach and Yacht, the authorities announced.

After a nine -day trial, Bernhard Eugen Fritsch, 63, was found guilty of a thread -of -threaded charge and faces a sentence of up to 20 years in prison, according to the United States Ministry of Justice. The jury recognized him not guilty of a second count of fraud by wire.

Fritsch remains free on Bond and should appear during a conviction in the coming months. A lawyer for him did not immediately respond to a request for comments on Friday.

From 2014 to 2017, according to prosecutors, Fritsch raised more than $ 20 million from investors for its technology technology company based in Santa Monica. He said that money was to build a request called starsite that would help celebrities and influencers monetize their fame thanks to advertisements sponsored on social networks.

Prosecutors say they have attracted investors by telling them that major media companies and a global investment bank company had already invested money in his business, which he said had $ 15 million in 2015. He also said he was about to conclude a trade agreement with Disney.

However, none of these statements were true, prosecutors said – and his promise to put their money in his technological business.

“Instead, Fritsch used a large part of investors’ money to get rich and support his luxurious lifestyle, including buying luxury cars such as a McLaren and a Rolls-Royce, fixing his yacht and renovating his Malibu manor, located near Carbon Beach,” said the Ministry of Justice in a press release.

Prosecutors believe that those taken in the program have lost about 25 million dollars. A potential investor contributed more than $ 20 million and introduced Fritsch to others who have given more millions, prosecutors said.

The police have seized the yacht and the luxury vehicles.

In addition to the federal trial, Fritsch was prosecuted three times before the County Court of the county of the allegations of fraudulent financial regimes.

Haqq Islam, director of the record industry, and his company continued StarClub and Fritsch in 2013, affirming a violation of contact and fraud. Islam allegedly alleged that Fritsch owed him $ 750,000 for helping to obtain celebrities such as Jessica Simpson to meet Fritsch and consider participating in Starclub Business Ventures, according to the report by Courthouse News Service.

Then, in 2017, Eugene McBurney and the hedge funds based in Bermuda Harrington Global Opportunities, both investors in Starclub, continued Fritsch on complaints to violate contract and fraud, according to the judicial archives.

This trial alleys that StarClub employees “have obtained more than $ 35 million in cash from investors on the basis of false performances, presenting their social media company as” the next great thing “.” A trial conference for this trial is scheduled for June 25.

Fritsch was continued last year by Marc Montgomery, who alleges that Fritsch – his cousin – owes him more than $ 593,000 in loans and interests that Fritsch used to cover his mortgage, car payments and public services, according to the complaint. This case is still pending.