KELSEY GRAMMER sued by ”Too Close for Comfort” star LYDIA CORNELL who charges he lured her into a Ponzi scheme but Kelsey claims he lost $1 mill on the “venture”.

Kelsey is being sued by actress Lydia Cornell, who alleges he helped lure her into a Ponzi scheme, but Grammer says he was also victimized and lost $1 million in the "venture".

The Frasier star was recently added as a defendant to a $100 million, 27-count lawsuit from Cornell, perhaps best known for playing Ted Knight's ditzy oldest daughter Sarah on Too Close for Comfort, and several other plaintiffs. The suit centers on a website called, and its parent company TODHD reported.

EXCLUSIVE DOCUMENT: Kelsey Grammer Sued – Read The Lawsuit

The allegations by Cornell and her co-plaintiffs include grand theft, fraud and extortion, and the lawsuit depicts Alex Varonos as a driving force behind a scheme that included selling "channels" on, using Grammer's name to convince others to join.

The lawsuit was filed in Los Angeles Superior Court last August and didn’t initially include Kelsey as a defendant at that time. He was added to the suit only weeks ago; the reason for the delay is not clear.

"Any claims filed against Kelsey Grammer concerning Starpoly are absurd and without merit. Kelsey has been substantially damaged in this venture, and in fact lost $1 million of his own money. Kelsey received nothing from the venture, monetarily or otherwise,” Grammer’s lawyer Marty “The Litigator” Singer said.

Staropoly used Grammer's name and likeness and Varonos pitched it as the "first branded social network" and "Kelsey's Network."

 According to the lawsuit, Grammer was prominently featured in advertising and promotional materials and he had a conference call and some personal contact with potential investors.

Four of the plaintiffs are lawyers and one is a self-described entertainment industry consultant. More than 100 defendants are identified in the lawsuit.