SANTA ANA, CALIFORNIA – An Orange County man pleaded guilty to defrauding dozens of doctors and others of more than $2 million in separate schemes that promised large returns on investments in the medical and dental fields, officials said.
David Rose, 57, of Coto de Caza, plead guilty Monday in U.S.District Court to one count of wire fraud and one count of mail fraud.
He will be sentenced in November and is facing up to 40 years behind bars.
According to court documents, over a six-year period that ran through May 2011, Rose solicited physicians to invest in an Irvine company he called M.D. Venture Partners and falsely promised lucrative returns on investments in emerging medical technologies.
In a subsequent scheme, court documents state that Rose used Technology Innovation Partners to solicit dentists and orthodontists to invest, claiming funds would be pooled and invested in a company developing ablation or the surgical removal of body issue technology that would be used to remove wisdom teeth in children without surgery.
In the M.D. Ventura Partners scheme, Rose caused approximately 32 victims to lose more than $900,000, according to court documents. In the Technology Innovation scheme, 45 victims lost more than $1.4 million, according to officials.
Throughout both schemes, investor funds were misused, with Rose using victims’ money for personal expenses, officials said.
According to a plea agreement filed in court, Rose used investor funds to pay $7,500-a-month rent for a house in Coto de Caza, college tuition, luxury vehicles, an $80,000 Sea Ray boat and shares in the Green Bay Packers.
The investigation revealed that no money was invested by either M.D. Venture Partners or Technology Innovation.
Rose was arrested in May 2013 and has remained in custody since that time.