A German national who lived in Malibu and fled the country after his conviction for conning investors out of nearly $25 million — by falsely claiming that Disney and other major corporations were interested in buying his tech company — was sentenced Monday in absentia to 15 years behind bars.
Bernhard Fritsch, 64, was convicted in April in downtown Los Angeles of one federal wire fraud count and acquitted on another, according to the U.S. Attorney’s Office.
Court papers show he was allowed to remain free on bond following trial but disappeared ahead of a bond revocation hearing in June. Prosecutors say he fled to Mexico with help from a girlfriend and arrived in Munich, Germany, earlier this month.
Sources said Germany doesn’t extradite its citizens for crimes such as wire fraud.
Evidence presented at a nine-day trial in L.A. federal court showed that Fritsch, founder and chief executive of Santa Monica-based StarClub Inc., made false claims to prospective investors, including that StarClub was on the verge of entering commercial deals with, or obtaining investments and buyout offers from major media companies such as Disney.
From 2014 to 2017, Fritsch raised more than $20 million from investors to build out the company’s app, claiming celebrities and influencers would use the technology to monetize their content posted on Facebook and other social media sites, prosecutors said. At the same time, he claimed, the app would deliver advertising content and share ad revenue with the celebrity poster.
Fritsch also claimed he would use the investors’ money to build out StarClub’s channels and technology and for general corporate purposes. Instead, Fritsch used much of the money to enrich himself and support a flashy lifestyle, including the purchase of luxury cars such as a McLaren and a Rolls-Royce, fixing up his yacht and renovating his Malibu mansion, located near Carbon Beach, evidence showed.
Law enforcement seized the yacht, the McLaren and the Rolls, and they are subject to forfeiture proceedings.
One of the defendant’s victims invested more than $20 million in StarClub over the course of two years, based on Fritsch’s false claims, prosecutors said. The victim also introduced Fritsch to other victims who invested millions of additional funds in the company. Prosecutors estimate that Fritsch caused nearly $25 million in victim losses because of his scheme.
Fritsch was also ordered Monday to pay a $35,000 fine. A Nov. 3 restitution hearing was scheduled.