{"id":54551,"date":"2023-10-30T16:55:20","date_gmt":"2023-10-30T23:55:20","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=54551"},"modified":"2023-10-30T16:55:20","modified_gmt":"2023-10-30T23:55:20","slug":"man-guilty-of-running-house-flipping-investment-scams-that-raised-more-than-17-million","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=54551","title":{"rendered":"Man Guilty of Running House-Flipping Investment Scams That Raised More than $17 Million"},"content":{"rendered":"<p style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\">\u00a0\u00a0\u00a0<strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES<\/strong><\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-5391 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/08\/Securities-and-Exchange-Commission.png\" alt=\"\" width=\"201\" height=\"201\" \/>A Costa Mesa man pleaded guilty Monday to federal criminal charges for running fraudulent investment schemes that raised more than $17 million by promising investors\u2014several of them elderly\u2014returns of up to 10% that would be generated through real estate deals, according to federal officials.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\">The real estate deals turned out to be bogus. He also admitted disobeying a court order to go to jail for violating the terms of his pretrial release, officials stated.<\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\">Brett Barber, 44, a former co-owner of the Newport Beach-based BNZ Capital One LLC and National American Capital, plead guilty to two counts of wire fraud and one count of criminal contempt.<\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\">According to his plea agreement, from May 2019 to October 2021, Barber participated in two schemes to defraud victim investors out of their money and property.<\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-4913 alignright\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/07\/Mortgage-Fraud.jpg\" alt=\"\" width=\"326\" height=\"190\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/07\/Mortgage-Fraud.jpg 182w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/07\/Mortgage-Fraud-180x106.jpg 180w\" sizes=\"auto, (max-width: 326px) 100vw, 326px\" \/>In the first scheme, BNZ Capital, its principals, and several marketers raised money by falsely representing that the firm bought and sold real estate projects and \u201cflipped\u201d real estate. <\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\">Barber, co-conspirator Louis Zimmerle, 64, of Sacramento, and the marketers falsely promised investors a \u201cguaranteed\u201d return of between 8% and 10%, as well as potential bonuses based on successful deals. <\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\">According to court documents, Barber told investors that their funds were \u201csafe\u201d and \u201cFDIC insured.\u201d<\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-14844 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/08\/FBI-Logo-300x225.jpg\" alt=\"\" width=\"300\" height=\"225\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/08\/FBI-Logo-300x225.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/08\/FBI-Logo-45x35.jpg 45w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/08\/FBI-Logo.jpg 640w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>In fact, while BNZ Capital did purchase some real estate, it did not take any substantial steps to develop parcels, nor did BNZ flip real estate for a profit. <\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\">Instead, BNZ primarily used investor funds to pay Barber, Zimmerle, and others associated with the scheme, including purchasing residences where Barber and Zimmerle lived. <\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\">Some of the investors\u2019 money was used to repay earlier investors.<\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\">During this scheme, Barber, Zimmerle, and the marketers solicited or caused to be transferred to BNZ Capital about $13.8 million from victim investors. <\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\">Investigators estimate losses from this scheme are at least $7 million.<\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\">Barber admitted in his plea agreement that he received and kept about $2,933,970 of investor money for his personal gain. At least five BNZ Capital investors were elderly, vulnerable victims who suffered substantial hardship because of the fraud committed against them.<\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\">After Barber learned that federal officials were investigating BNZ Capital, he began a second fraudulent scheme, this time involving a company he formed in January 2021 called National American Capital (NAC). The NAC scheme operated, in substance, the same way as the BNZ Capital fraud. <\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\">That is, Barber and marketers working at his direction lied to investors by saying their money would be used to fund real estate development projects. <\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\">In fact, there were no such projects, and the only way NAC could repay earlier investors was by soliciting money from new investors.<\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\">Specifically, in October 2021, Barber met with a person he believed was a prospective investor but who was an undercover law enforcement official. <\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\">During this meeting, Barber told several lies: that NAC had been in business for 20 years and that it owned ten parcels of land in Laguna Beach. NAC had purchased the property in Newport Beach and turned it into a four-plex. None of these statements was true.<\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\">Barber admitted in his plea agreement that this scheme caused a loss of at least $3.5 million. He further admitted to receiving and keeping at least $388,669 of investor money for his gain.<\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\">During the BNZ Capital and NAC schemes, Barber failed to disclose to investors that he had previously been barred from acting as or associating with a broker-dealer by the Financial Industry Regulatory Authority (FINRA).<\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\">Finally, after a federal grand jury indicted Barber in October 2021, he was released on bond.<\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\"> In January 2023, a court found that Barber violated the terms of his pretrial release and ordered him to surrender to the U.S. Marshals Service by January 13.<\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\"> Barber willfully disobeyed the court\u2019s order and failed to surrender. <\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\">In March 2023, Barber was arrested in Santa Cruz County, California. He eventually was transferred to federal custody in Los Angeles, where he remains.<\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\">United States District Judge Otis D. Wright II scheduled a March 4 sentencing hearing. At that time, Barber faces up to life in prison if convicted of all the charges.<\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\">Zimmerle pleaded guilty in January 2022 to one count of wire fraud. <\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\">In his plea agreement, Zimmerle admitted to participating in the BNZ Capital scam and that he received and kept approximately $582,815 of victim investor money. His sentencing hearing is scheduled for January 22, 2024.<\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\">In October 2021, the United States Securities and Exchange Commission (SEC) <a href=\"https:\/\/www.sec.gov\/news\/press-release\/2021-221\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">filed a civil lawsuit<\/a>\u00a0against Barber, Zimmerle and BNZ Capital for fraudulently raising more than $13 million from over 100 retail investors.<\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The FBI is investigating this matter. The SEC provided substantial assistance.<\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 18px;\">Assistant U.S. Attorney Bradley E. Marrett of the Santa Ana Branch Office is prosecuting this case.<\/span><\/p>\n<p class=\"yiv0679661117MsoNormal\" style=\"text-align: center;\">\n","protected":false},"excerpt":{"rendered":"<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES A Costa Mesa man pleaded guilty Monday to federal criminal charges for running fraudulent investment schemes that raised more than $17 million by promising investors\u2014several of them elderly\u2014returns of up&#8230;<\/p>\n","protected":false},"author":1,"featured_media":54552,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,3],"tags":[],"class_list":["post-54551","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fbi","category-u-s-department-of-justice"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ 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