LOS ANGELES
A Costa Mesa man was sentenced Monday to 17 years in federal prison for running fraudulent investment schemes that raised over $17 million, officials stated.
Brett Barber promised investors, including several elderly individuals, returns of up to 10% from fake real estate deals. He was also sentenced for defying a court order to surrender to federal authorities after violating his pretrial release terms.
Barber, 45, is a former co-owner of the Newport Beach-based BNZ Capital One LLC and National American Capital.
U.S. District Judge Otis D. Wright II scheduled a Jan. 9 restitution hearing in this case.
At Monday’s hearing, Judge Wright said, “There may not have been bloodshed, but this was real violence. [The defendant] knew these people were in their golden years, and he just took it all.”
In October 2023, Richard Barber pleaded guilty to two counts of wire fraud and one count of criminal contempt for defrauding investors, including older adults, out of millions of dollars.
“This defendant enriched himself through a fraudulent investment scheme that targeted retirement funds and harmed vulnerable communities,” said U.S. Attorney Martin Estrada. “Today’s sentence demonstrates our commitment to fighting for victims and holding fraudsters accountable.”
Two Fraudulent Schemes
BNZ Capital Scheme (May 2019 – October 2021)
Barber, along with co-conspirator Louis Zimmerle and marketers, falsely claimed that BNZ Capital bought, sold, and flipped real estate. They promised investors “guaranteed” returns of 8%-10% and assured them their funds were “safe” and “FDIC insured.”
In reality, BNZ Capital made minimal real estate investments and did not flip properties for profit. Instead, investor funds were used to pay Barber, Zimmerle, and others, as well as to purchase homes for their personal use. Some funds were used to repay earlier investors.
- Total Raised: $13.8 million
- Estimated Losses: At least $7 million
- Barber’s Personal Gain: $2.93 million
- Victims: At least five elderly investors suffered severe financial hardship.
National American Capital (NAC) Scheme (2021)
After learning of federal investigations into BNZ Capital, Barber launched NAC in January 2021. He falsely claimed the company would fund real estate development projects, but there were no such projects. NAC operated as a Ponzi scheme, using new investor funds to repay earlier investors.
In October 2021, Barber lied to an undercover agent posing as an investor, falsely stating that NAC:
- Had been in business for 20 years.
- Owned 10 properties in Laguna Beach.
- Had developed a four-plex in Newport Beach.
- Losses from NAC Scheme: $3.5 million
- Barber’s Personal Gain: $388,669
Barber also failed to disclose that he had been barred by FINRA from acting as a broker-dealer.
Legal Consequences
- Pretrial Violation: After his October 2021 indictment, Barber violated his pretrial release and failed to surrender in January 2023. He was arrested in March 2023 and remains in federal custody.
- Zimmerle’s Sentence: In January 2022, Zimmerle pleaded guilty to wire fraud. In June 2022, he was sentenced to five years of probation, fined $10,000, and ordered to pay $684,500 in restitution.
Civil and Federal Actions
In October 2021, the SEC filed civil charges against Barber, Zimmerle, and BNZ Capital for raising over $13 million from more than 100 investors. That case is ongoing.
The FBI led the investigation with substantial assistance from the SEC.
Assistant U.S. Attorneys Maxwell K. Coll and Anne C. Gannon prosecuted the case.