Malibu Man Found Guilty of Defrauding Investors Out of Over $20 Million Via False Claims About Celebrity App’s Business Performance

Source: US FBI

LOS ANGELES – A Malibu man has been found guilty by a jury of defrauding investors out of more than $20 million by lying to them about his technology company’s financial performance related to a software application designed to help celebrities and social media influencers monetize their brand endorsements, the Justice Department announced today.

Bernhard Eugen Fritsch, 63, was found guilty late Thursday of one count of wire fraud.

According to evidence presented at a nine-day trial, Fritsch was the founder and CEO of StarClub Inc., a Santa Monica-based tech company. From 2014 to 2017, Fritsch raised more than $20 million from investors to build out the company’s app, also known as StarSite, claiming celebrities and influencers would use the technology to post content on social media sites such as Facebook. At the same time, the app would deliver advertising content and share ad revenue with the celebrity poster.

While pitching the StarClub offering to investors, Fritsch made several false and fraudulent claims, 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; that StarClub had earned $15 million in revenue in 2015; and that StarClub’s current investors included major media companies and a global investment banking firm. 

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 investor money to enrich himself and support his luxurious lifestyle, including by purchasing luxury cars such as a McLaren and a Rolls-Royce, fixing up his yacht, and renovating his Malibu mansion, located near Carbon Beach. 

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. 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.

The jury found Fritsch not guilty of a second wire fraud count. He remains free on bond.

United States District Judge Dale S. Fischer is expected to schedule a sentencing hearing to occur in the coming months. Fritsch faces a statutory maximum sentence of 20 years in federal prison.

The FBI investigated this matter.

Assistant United States Attorneys Monica E. Tait, Sarah S. Lee, and Joseph L. De Leon of the Major Frauds Section are prosecuting this case.

Duncan Man Pleads Guilty after Fatal Shooting in Indian Country

Source: US FBI

OKLAHOMA CITY – JESSE WAYNE JAMES KEENAN, 18, of Duncan, has pleaded guilty to voluntary manslaughter and discharging a firearm during and in relation to a crime of violence, announced U.S. Attorney Robert J. Troester.

According to public record, on July 19, 2024, officers with the Duncan Police Department (“DPD”) responded to a Duncan apartment complex on a reported shooting. At the apartment, DPD located a male victim who had been shot and attempted to provide medical care, but the victim died on scene. Witnesses at the complex identified Keenan as the person who shot the weapon.  He was located and arrested a short time later. After speaking with Keenan, FBI agents learned Keenan went to the apartment complex after an argument between Keenan and his girlfriend. After Keenan arrived, a fist fight ensued between Keenan and the victim. During the altercation, Keenan shot the victim with a pistol and fled from the scene. The pistol was later recovered by the FBI.

On April 7, 2025, Keenan was charged by Superseding Information with voluntary manslaughter and discharging a firearm during and in relation to a crime of violence.

On May 1, 2025, Keenan pleaded guilty to the Superseding Information, and admitted that during a quarrel, he intentionally and unlawfully shot the victim, while intending to cause serious bodily injury, which resulted in the victim’s death. At sentencing, he faces no less than 10 years and up to life in federal prison, and a fine of up to $500,000.

This case is in federal court because Keenan is a member of the Choctaw Nation, and the crime occurred within the boundaries of the Chickasaw Nation.

This case is the result of an investigation by the FBI Oklahoma City Field Office and the Duncan Police Department. Assistant U.S. Attorneys Tiffany Edgmon and Bow Bottomly are prosecuting the case.

Reference is made to public filings for additional information.

Claremore Man Sentenced for Involuntary Manslaughter and Assault

Source: US FBI

TULSA, Okla. – A Claremore man was sentenced today for involuntary manslaughter and assault that resulted in serious bodily injury, announced U.S. Attorney Clint Johnson.

U.S. District Judge John D. Russell sentenced Jerry Dean Luton, III, 35, for Involuntary Manslaughter in Indian Country and Assault Resulting in Serious Bodily Injury in Indian Country. Judge Russell ordered Luton to serve 84 months’ imprisonment, followed by three years of supervised release.

Court records show that in August 2023, Timothy Austin was driving with his wife when Luton crossed the center line, hitting the Austins’ vehicle head-on, killing Timothy and injuring his wife of more than 51 years. The investigation revealed that Luton was driving without a license and impaired by alcohol, methamphetamine, and marijuana in his system.

Luton is a citizen of the Cherokee Nation and was permitted to remain on bond and voluntarily surrender to the U.S. Bureau of Prisons.

The FBI and the Oklahoma Highway Patrol investigated the case. Assistant U.S. Attorney Matthew P. Cyran prosecuted the case.

Long Beach Man Sentenced to Seven Years in Federal Prison for Smash-and-Grab Robbery of Jewelry Worth $2.6 Million

Source: US FBI

LOS ANGELES – A Long Beach man was sentenced today to 84 months in federal prison for his role in a smash-and-grab robbery of a Beverly Hills jewelry store in 2022 in which more than $2.6 million in merchandise was stolen – and the proceeds of which he later displayed on his Instagram account.

Ladell Tharpe, 39, was sentenced by United States District Judge George H. Wu, who also ordered him to pay $2,674,600 in restitution.  

Tharpe pleaded guilty in September 2024 to one count of interference with commerce by robbery (Hobbs Act).

“Brazen criminal action that directly targets our small businesses in Los Angeles County will not be tolerated,” said Acting United States Attorney Joseph McNally. “The consequences for such action are severe and penalized accordingly, and I want to thank our law enforcement partners for their exceptional and dutiful work during this investigation.”

“Mr. Tharpe terrified his victims during this violent robbery carried out in broad daylight, then shamelessly boasted about it online,” said Akil Davis, the Assistant Director of the FBI’s Los Angeles Field Office. “The FBI will continue to work with our counterparts at local police departments to address violent crime and pursue justice at the federal level where appropriate.” 

“The Beverly Hills Police Department is committed to protecting our community and ensuring justice,” said Beverly Hills Police Chief Mark G. Stainbrook. “We value our partnership with the FBI and the U.S. Attorney’s Office and appreciate the investigators who relentlessly pursued and prosecuted those responsible for this crime. As a reminder, crime will not be tolerated in Beverly Hills.” 

In March 2022, Tharpe and his accomplices, Deshon Bell, 22, Jimmy Lee Vernon III, 33, both from Long Beach, as well as an unnamed minor drove three vehicles to a jewelry store in Beverly Hills and used sledgehammers and crow bars to break the glass surrounding the merchandise while employees and customers were present.

One of the vehicles driven to the jewelry store had been reported stolen four days prior to the robbery and was left in front of the victim store.

The thieves removed from the store’s display cases at least 19 bracelets, seven pairs of earrings, four necklaces, a pair of obelisks, eight rings, and 20 watches, all of which was valued at approximately $2,674,600. The robbers then returned to the car in which Bell was waiting and then fled the scene.

Two days after the heist, Tharpe posted images of large amounts of cash on his Instagram with the text “Robbery Gang.”

Tharpe has been in federal custody since March 2023.

Bell and Vernon each pleaded guilty to one count of Hobbs Act robbery. Judge Wu sentenced Bell to one year and one day in federal prison in February 2024, as well as ordering him to pay $2,674,000 in restitution.

Vernon, whose cellphone fell out of his sweatpants pocket during the conduct of the robbery and was recovered by investigators, was sentenced last month to 80 months in prison and was also ordered to repay $2,674,000 in restitution.

The FBI and the Beverly Hills Police Department investigated this matter.

Assistant United States Attorneys Kevin J. Butler of the Violent and Organized Crime Section and Kevin B. Reidy of the Major Frauds Section prosecuted the case.

Sapulpa Woman Sentenced for Second-Degree Murder

Source: US FBI

TULSA, Okla. – A Sapulpa woman was sentenced today for Second Degree Murder in Indian Country, announced U.S. Attorney Clint Johnson.

U.S. District Judge John D. Russell sentenced Christin Brianna Kelley, 35, to 240 months imprisonment, followed by five years of supervised release.

Shortly after 4:00 a.m. on the morning of January 9th, 2024, Kelley and the victim, Isaac Smith, were sitting in a car in the parking lot of a gas station in Sand Springs. Kelley shot Isaac Smith several times, killing him. Law enforcement recovered the loaded pistol Kelley used in a trash can near the car.

Kelley is a citizen of the Muscogee (Creek) Nation and will remain in custody pending transfer to the U.S. Bureau of Prisons.

The FBI, the Sand Springs Police Department, and the Oklahoma State Bureau of Investigations investigated the case, and Assistant U.S. Attorneys Eric O. Johnston and Stephen Flynn prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.

Father Sentenced to Life Plus 10 Years for First-Degree Murder and Assault; Sons Sentenced for Their Involvement

Source: US FBI

TULSA, Okla. – A father was sentenced after being convicted by a jury of first-degree murder and assault, announced U.S. Attorney Clint Johnson.

U.S. District Judge Gregory K. Frizzell sentenced James William Buzzard, 52, to life imprisonment, plus 10 years, after a jury convicted Buzzard of First Degree Murder in Indian Country, Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian County, and Carrying, Using, or Discharging a Firearm During and in Relation to a Crime of Violence.

Before the trial began, James Buzzard’s co-defendants and sons pleaded guilty to their involvement in the murder of Jerry Tapp.

Cody Dwayne Buzzard, 31, pled guilty to Second Degree Murder in Indian Country, and Carrying, Using, Brandishing, and Discharging a Firearm During and in Relation to a Crime of Violence. Judge Frizzell ordered Cody Buzzard to serve 300 months’ imprisonment, followed by five years of supervised release.

Dakota Chase Buzzard, 23, pled guilty to Conspiracy to Carry, Use, Brandish, and Discharge a Firearm During and in Relation to a Crime of Violence. Judge Frizzell ordered Dakota Buzzard to serve 78 months’ imprisonment, followed by three years of supervised release.

In August 2019, the Delaware County Sheriff’s Office responded to a 911 call about a shooting. Upon arrival, deputies discovered Jerry Tapp deceased in his front yard with multiple gunshot wounds. Deputies found a second victim alive, who was shot in the arm. 

Witness interviews led law enforcement to Dakota Buzzard, who was driving a white, 4-door Altima, matching the description of the vehicle seen leaving. Law enforcement found spent casings in the yard, driveway, and roadway. They also found additional casings in the vehicle and the rifle used in the shooting.

Court documents showed that the defendants waited for Jerry Tapp to return home from work. Once Jerry Tapp exited the vehicle, James Buzzard shot at Jerry, and handed the gun to Cody Buzzard, who continued shooting.

The FBI, the Oklahoma State Bureau of Investigation, and the Delaware County Sheriff’s Office investigated the case, and Assistant U.S. Attorneys Reagan Reininger and Eric O. Johnston prosecuted the case.

Cherokee County Resident Sentenced to Life in Prison for Murder in Indian Country

Source: US FBI

MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Steven DeWayne Beard, age 51, of Stilwell, Oklahoma, was sentenced to life imprisonment for First Degree Murder in Indian Country and to a consecutive sentence of 120 months for Discharging a Firearm During a Crime of Violence.

On September 14, 2024, a federal jury convicted Beard on both counts.   According to investigators, on March 29, 2023, Beard, who was a romantic rival for a woman’s affections, became angry and ordered the woman to remove her property from his residence while he was away.  Knowing that the victim was the woman’s only ride and would accompany her to remove her items, Beard hid his vehicle from view, then waited inside his residence for the pair to arrive.  When the woman arrived with Beard’s intended target, Beard shot the victim in the chest with a shotgun.  The victim fell to the ground and Beard shot the victim in the chest again at pointblank range.  The crimes occurred in Cherokee County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.

The charges arose from investigations by the Cherokee County Sheriff’s Office, the Cherokee Nation Marshal Service, and the Federal Bureau of Investigation.

The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing.  Beard will remain in the custody of the U.S. Marshals Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.

Assistant U.S. Attorneys Kevin Gross and T. Cameron McEwen represented the United States.

Iranian National Indicted for Operating Online Marketplace Offering Fentanyl, Other Drugs, and Money Laundering Services

Source: US FBI

CLEVELAND – A federal grand jury has charged Behrouz Parsarad, an Iranian national, for his role as the creator and operator of Nemesis Market, a dark web marketplace designed to enable users to buy and sell illegal drugs and other illicit goods. The market also sold criminal cyber-services such as obtaining stolen financial information, fraudulent identification documents, counterfeit currencies, and computer malware.

According to the indictment, Parsarad, 36, of Tehran, Iran, launched Nemesis Market in or around March 2021. Nemesis Market operated on the dark web, a network that uses The Onion Router (TOR) to encrypt traffic and hide users’ Internet Protocol (IP) address. At its peak, Nemesis Market had over 150,000 users and more than 1,100 vendor accounts registered worldwide. Between 2021 and 2024, Nemesis Market processed more than 400,000 orders, including more than 60,000 orders in 2022 and more than 250,000 orders in 2023. Of these, more than 55,000 orders were categorized as stimulants, which included sub-categories for methamphetamine, cocaine, cocaine base (crack), and other controlled substances. More than 17,000 orders were categorized as opioids, which included sub-categories for fentanyl, heroin, and oxycodone. All of the substances covertly purchased by the government and marketed on Nemesis as “isotonitazene,” “M30s” (purporting to be oxycodone), and “Percs” (purporting to be Percocet) were confirmed by laboratory reports to be mixtures and substances containing fentanyl, a Schedule II controlled substance and/or acetylfentanyl, heroin, and/or protonitazene, each a Schedule I controlled substance.

“The allegations in this indictment span over four hundred thousand transactions involving fentanyl, other dangerous drugs, and a wide range of contraband made accessible on the darknet for more than three years,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “Through cooperation with German and Lithuanian partners, the alleged administrator of this marketplace has been charged, servers and other infrastructure have been seized, and dangerous drugs and other contraband have been stopped from entering the United States. This case demonstrates the Department’s tireless commitment to protecting U.S. communities from the harms caused by fentanyl and darknet marketplaces and pursuing accountability for those who would endanger our communities no matter where they are located.”

“Anyone who tries to profit from the sale of illegal drugs – whether it’s on the streets or online – will face consequences. Whether you sell or help others sell these dangerous drugs, you will be held accountable,” said Acting U.S. Attorney Carol M. Skutnik for the Northern District of Ohio. “I want to acknowledge the excellent investigative work of our federal agency partners here in Ohio who helped us to bring the charges in this case. Together, we remain committed to keeping our neighborhoods safe and our streets free from illegal narcotics.”

“This indictment, made possible by the assistance of our German and Lithuanian allies, underscores the importance of global partnerships and international collaboration,” said FBI Cleveland Acting Special Agent in Charge Charles Johnston. “Nemesis Market, through the darknet, was a borderless powerhouse of criminal activity that not only fueled the drug epidemic, but also a multitude of illegal acts with the capacity to harm our citizens and destroy our communities. The FBI stands firm in its commitment to identify and investigate unlawful individuals and dismantle their networks operating with criminal intent.”

Parsarad is charged with conspiracy to distribute controlled substances and distribution of controlled substances in the Northern District of Ohio and elsewhere. In addition, Parsarad is also charged with money laundering conspiracy for both using proceeds to promote illegal drug dealing and for offering money laundering services through Nemesis Market by mixing cryptocurrencies used to pay for goods and services to obscure their origins. Nemesis users were not allowed to conduct transactions in official, government-backed currencies.

On March 20, 2024, U.S. law enforcement, in cooperation with German and Lithuanian authorities, seized Nemesis Market and stemmed the flow of these drugs into the United States and elsewhere. In March 2025, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced sanctions against Parsarad for his role as the administrator of Nemesis Market. According to OFAC, Nemesis Market facilitated the sale of nearly $30 million worth of drugs between 2021 and 2024.

If convicted, Parsarad faces a mandatory minimum of 10 years in federal prison and a maximum penalty of life.

The FBI Cleveland Division is investigating the case with assistance from the DEA and IRS-Criminal Investigations Chicago. The Justice Department’s Office of International Affairs and Cybercrime Liaison Prosecutor to Eurojust provided significant assistance.

Assistant U.S. Attorney Segev Phillips for the Northern District of Ohio and Trial Attorney Gaelin Bernstein of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case, with substantial assistance from the U.S. Attorneys Offices for the Northern District of Illinois and District of Massachusetts.

This case was investigated as part of an FBI-led interagency Joint Criminal Opioid and Darknet Enforcement (J-CODE) operation. J-CODE brings together experts from the DEA, the Postal Inspection Service, Homeland Security Investigations, as well as the Department of Defense and the Customs and Border Protection, along with the FBI. The Justice Department appreciates the cooperation and significant assistance provided by law enforcement partners in the British Virgin Islands, Germany, Lithuania, and Türkiye.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

North Ridgeville Doctor Pleads Guilty to Health Care Fraud Conspiracy

Source: US FBI

Scheme billed Medicare more than $14M for unnecessary medical equipment and lab tests

CLEVELAND – An Ohio doctor has pleaded guilty to his role in a conspiracy that prescribed medical equipment and lab tests for patients who did not need them and then submitted claims to Medicare to receive payment. Medicare is a federal health benefit program administered under the U.S. Department of Health and Human Services (HHS) and most notably covers beneficiaries aged 65 and older.

According to court documents, Timothy Sutton, 43, of North Ridgeville, Ohio, admitted that he and other co-conspirators engaged in a scheme to fraudulently bill more than $14.5 million in payments from Medicare. Sutton was employed by two telemedicine companies; Real Time Physicians, LLC, based in Nevada, and 24 Hour Virtual MD, LLC, based in Florida. The companies provided Sutton with pre-completed orders for durable medical equipment (DME), such as braces, and/or cancer genetic testing (CGX) for him to approve and digitally sign. In doing so, he affirmed that he had examined patients using a telemedicine platform and determined that they needed DME or that CGX testing was necessary. In truth, he never examined any of the patients who resided throughout Ohio and Florida.

Once Sutton prescribed the equipment or ordered testing, Real Time Physicians and 24 Hour Virtual MD furthered the conspiracy by forwarding the orders to companies under their control or sold the orders to other medical entities to provide DME or conduct the lab testing. Sutton defrauded Medicare by submitting claims that were not reasonable and necessary for medical treatment and did not comply with Medicare rules and regulations or applicable federal laws.

On April 4, 2025, Sutton pleaded guilty to attempt and conspiracy to commit wire fraud and bank fraud, false statements related to health care matters, and aggravated identity theft. He faces a maximum penalty of 27 years in prison. Sentencing is scheduled for July 26, 2025.  A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

This case was investigated by the U.S. Department of Health and Human Services-Office of the Inspector General, and the FBI Cleveland Division. In the Northern District of Ohio, Assistant U.S. Attorneys Om Kakani and Rebecca Lutzko are prosecuting the case.

About the Northern District of Ohio

The U.S. Attorney’s Office for the Northern District of Ohio covers the 40 northern-most counties in the state of Ohio, which is home to nearly six million people. The office operates from its main headquarters in Cleveland, with additional branches in Akron, Toledo, and Youngstown. The U.S. Attorney serves as the chief federal law enforcement officer in the District and oversees the prosecution of federal crimes and protect victims’ rights. 

Former Fifth-Grade Teacher at San Gabriel Valley School Sentenced to Four Years in Federal Prison for Possession of Child Pornography

Source: US FBI

RIVERSIDE, California – A former elementary school teacher who worked at a school district in the San Gabriel Valley was sentenced today to 48 months in federal prison for possessing more than 400 videos containing child sexual abuse material (CSAM).

Steven Pilar, 47, of Las Vegas, was sentenced by United States District Judge Sunshine S. Sykes, who also ordered him to pay $115,000 in restitution.

Pilar pleaded guilty in December 2024 to one count of possession of child pornography. He has been in federal custody since August 2024.

In February and April of 2020, Pilar used his computer and a peer-to-peer file-sharing program called BitTorrent to download videos and images containing CSAM via the internet. Specifically, Pilar – at his then-home in Victorville – knowingly received and downloaded approximately 444 videos containing CSAM, and knowingly possessed the videos for a time before deleting them. 

At the time of download and possession, Pilar knew these videos and images contained visual depictions of actual children engaging in sexually explicit conduct. 

Many of the videos and images that Pilar knowingly downloaded involved a pre-pubescent minor and a minor who had not attained 12 years of age, sadistic and masochistic conduct, and sexual abuse and exploitation of an infant and toddler.

Pilar was employed as a fifth-grade teacher working in the Hacienda La Puente Unified School District at the time of the offense. He no longer works at the school.

In April 2020, Pilar was arrested on state charges, which were later dropped so a federal case could be pursued.

“His actions caused direct and significant harm to the victims in this case, and his offense is aggravated by fact that he was teaching young children at the time,” prosecutors argued in a sentencing memorandum. “In fact, when [Pilar] downloaded and viewed the CSAM, he took part of a perpetual re-victimization of the victims.”

The FBI and the San Bernardino County Sheriff’s Department investigated this matter.

Assistant United States Attorney Joshua J. Lee of the General Crimes Section prosecuted this case.