New Lawsuits Accuse Brendan Fitzpatrick of Ponzi Scheme

Former Douglas Elliman broker and “Rich Kids of Beverly Hills” star Brendan Fitzpatrick is accused of running a more than $80 million Ponzi scheme.

Fitzpatrick, now based in Palm Beach, has been named in a series of lawsuits tied to Carbonatik, his company that marketed itself as a mining and commodities business with interests in graphite, copper and rare-earth minerals across Sri Lanka, Tanzania and India, the California Post reported.

Investors allege Carbonatik promised returns as high as 120 percent while backing those claims with fabricated financial statements, appraisals and letters of intent. Fitzpatrick and Carbonatik denied the allegations in court documents and have filed counterclaims in several cases, including claims for defamation and breach of contract.

Among the plaintiffs are Palm Beach businessman Richard Segerson and entrepreneur Gary Smith, who claim they invested $500,000 in Carbonatik after being presented with extensive documentation and introductions to high-profile contacts. According to court filings cited by the Post, the pair later alleged that promised returns, mining operations and inventory never materialized. A court-appointed receiver has since been installed over Carbonatik as litigation continues.

The legal troubles extend beyond the mining venture. In February, four Belgian investors filed suit in London seeking roughly €64 million (about $74.2 million), over the Varko Bay hotel development in Greece. The plaintiffs allege they were not fully paid after selling interests in entities tied to the project and claim guarantees connected to the transaction were not honored. Carbonatik and affiliated entities are named as defendants.

Additional claims have piled up from creditors and vendors, including a prior Florida judgment exceeding $4 million in favor of an investor that alleged Carbonatik defaulted on loans. Other lawsuits involve unpaid service contracts, furniture purchases and $300,000 in credit card debt.

Fitzpatrick parlayed reality TV fame into a luxury real estate career in Los Angeles with The Agency and later Douglas Elliman, and went on to cultivate an image of affluence in Palm Beach and beyond. With the latest wave of legal action, that appearance has been effectively shattered.

“He’s faked it his whole life,” Smith told the Post. “He’s fake it till you make it.”

— Chris Malone Méndez