SANTA ANA, CALIFORNIA – An Orange County man who admitted targeting dozens of doctors and others in schemes that promised large returns on investments was sentenced to four years and nine months in prison on Monday.
The victims were told that their investments would be in the medical and fields.
As a result, victims lost more than $2 million, officials said.
U.S. District Judge James V. Selna sentenced defendant David Rose, 58, of Coto de Caza, after Rose plead guilty in July to one count of wire fraud and one count of mail fraud.
In a M.D. Venture Partners scheme, Rose caused approximately 32 victims to lose more than $900,000, according to court documents. In a Technology Innovation Partners, 45 victims lost more than $1.4 million.
Throughout both schemes, investor funds were misused, with Rose using victims’ money for personal expenses. According to a plea agreement filed in court, Rose used investor funds to pay $7,500 monthly rent for a house in Coto de Caza, college tuition, and buy an $80,000 Sea Ray boat and shares in the Green Bay Packers.
The FBI investigation revealed that no money was invested by either Venture Partners or Technology Innovation.
As part of today’s sentencing, Judge Selna ordered Rose to pay a total of $2.3 million as restitution.
“The theft of more than $2 million by fraud is a serious offense, an offense in this case that took place over many years,” prosecutors wrote in a sentencing brief.
According to court documents, over a six-year period that ran through May 2011, Rose solicited physicians to invest in Ventura Partners, an Irvine company that falsely promised lucrative returns on investments in emerging medical technologies.
In a subsequent scheme, Rose used Technology Innovation and Millenium Marketing Partners, both of Irvine, to solicit dentists and orthodontists to invest, claiming funds would be pooled and invested in a company developing ablation technology that would be used to remove wisdom teeth in children without surgery, officials said.