“Rich Kids of Beverly Hills” Alum Brendan Fitzpatrick Sued Over Alleged $80 Million Scheme
“Rich Kids of Beverly Hills” Alum Brendan Fitzpatrick Sued Over Alleged $80 Million Scheme
Elizabeth RosnerWed, June 17, 2026 at 11:53 PM UTC
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Credit: Brendan Fitzpatrick/Instagram -
Investors allege Brendan Fitzpatrick and his mining company, Carbonatik, used false promises to secure a $500,000 investment
The lawsuit cites an alleged "guaranteed 120% dividend" and text messages referencing an unfulfilled "$80 million" monetization plan
Fitzpatrick denies the allegations and has countersued, claiming investors failed to pay the full $1 million they agreed to invest and later launched a campaign to damage his reputation
Brendan Fitzpatrick is facing a lawsuit after investors accused the formerRich Kids of Beverly Hillsalum and his mining company, Carbonatik, of participating in what the investors describe as an $80 million scheme that allegedly targeted wealthy businessmen through mining concessions and commodities ventures in Asia and Africa.
According to a complaint obtained by PEOPLE and filed in Florida in November 2025, Heavy Metal Capital principals David Smith and Richard Segerson allege Fitzpatrick, Carbonatik and other business associates "engaged in a systematic scheme to obtain money from multiple victims through fraudulent misrepresentations, omissions, and deception."
The investors claim Carbonatik solicited a $500,000 investment after allegedly representing that it had funded investor facilities and mining concessions capable of immediate production and long-term offtake agreements.
According to the complaint, the investors were promised a "guaranteed 120% dividend" beginning in July 2025 and were told Carbonatik had secured financing and production capacity to support immediate deliveries.
Brendan FitzpatrickCredit: Brendan Fitzpatrick/Instagram
Heavy Metal Capital alleges in the filing the defendants operated the venture as a "Ponzi-style scheme," claiming investors were repeatedly provided misleading information about the company's assets, financing and ability to fulfill promised shipments.
According to the lawsuit, Carbonatik represented that it had already secured the funding and mining concessions necessary to support immediate production.
The investors later learned the company still required an additional $1 million to $2 million for preparatory work and trial shipments, despite earlier representations that it was ready to begin production, the filing alleges.
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Fitzpatrick, 37, rose to fame on E!'s Rich Kids of Beverly Hills, which followed the lives of affluent young adults in Los Angeles. He later married television personality Morgan Stewart, and the pair divorced in 2019.
Brendan Fitzpatrick (L) and ex Morgan Stewart in 2018Credit: Matt Winkelmeyer/Getty
Fitzpatrick, Carbonatik and the other defendants have denied the allegations and asked the court to dismiss the lawsuit, arguing that the investors have not demonstrated legally recognizable damages.
In April 2026, the defendants filed counterclaims of their own against the investors.
According to the counterclaim, Smith and Segerson agreed to invest $1 million in exchange for a 1% ownership stake in Carbonatik Graminet but ultimately paid only $500,000. Fitzpatrick is also suing Smith for defamation, alleging he created a website targeting the reality star and threatened to publicly accuse him of operating a Ponzi scheme.
Representatives for Fitzpatrick did not immediately respond to PEOPLE's request for comment.
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A jury trial is scheduled for May 24, 2027.
on People
Source: “AOL Entertainment”
