{"id":57994,"date":"2024-12-09T18:20:41","date_gmt":"2024-12-10T02:20:41","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=57994"},"modified":"2024-12-09T18:20:41","modified_gmt":"2024-12-10T02:20:41","slug":"man-sentenced-to-over-15-years-in-prison-for-17-million-house-flipping-investment-scam","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=57994","title":{"rendered":"Man Sentenced to Over 15 Years in Prison for $17 Million House Flipping Investment Scam"},"content":{"rendered":"<p class=\"yiv7876991816MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES <\/strong><\/span><\/p>\n<div class=\"flex max-w-full flex-col flex-grow\" style=\"text-align: left;\">\n<div class=\"min-h-8 text-message flex w-full flex-col items-end gap-2 whitespace-normal break-words text-start [.text-message+&amp;]:mt-5\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"f45073b5-fc34-4078-a750-0faa5c98c39c\" data-message-model-slug=\"gpt-4o\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[3px]\">\n<div class=\"markdown prose w-full break-words dark:prose-invert dark\">\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-6172 alignright\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/09\/FBI-Insider-Trading-300x228.jpg\" alt=\"\" width=\"389\" height=\"296\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/09\/FBI-Insider-Trading-300x228.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/09\/FBI-Insider-Trading-45x35.jpg 45w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/09\/FBI-Insider-Trading.jpg 500w\" sizes=\"auto, (max-width: 389px) 100vw, 389px\" \/>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.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Brett Barber\u00a0 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.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p class=\"yiv7876991816MsoNormal\" style=\"text-align: left;\"><span style=\"font-size: 20px;\">\u00a0Barber, 45, is a former co-owner of the Newport Beach-based BNZ Capital One LLC and National American Capital.<\/span><\/p>\n<p class=\"yiv7876991816MsoNormal\" style=\"text-align: left;\"><span style=\"font-size: 20px;\">U.S. District Judge Otis D. Wright II scheduled a Jan. 9 restitution hearing in this case.<\/span><\/p>\n<p class=\"yiv7876991816MsoNormal\" style=\"text-align: left;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0 <img loading=\"lazy\" decoding=\"async\" class=\"wp-image-39979 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2020\/07\/judge-gavel-300x160.jpg\" alt=\"West Virginia Woman Took Top Secrets, Committed Kidnapping\" width=\"480\" height=\"256\" \/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 At Monday&#8217;s hearing, Judge Wright said, \u201cThere 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.\u201d<\/span><\/p>\n<div class=\"flex-1 overflow-hidden @container\/thread\">\n<div class=\"h-full\">\n<div class=\"react-scroll-to-bottom--css-nbmcx-79elbk h-full\">\n<div class=\"react-scroll-to-bottom--css-nbmcx-1n7m0yu\">\n<div class=\"flex flex-col text-sm md:pb-9\">\n<article class=\"w-full scroll-mb-[var(--thread-trailing-height,150px)] text-token-text-primary focus-visible:outline-2 focus-visible:outline-offset-[-4px]\" dir=\"auto\" data-testid=\"conversation-turn-5\" data-scroll-anchor=\"true\">\n<div class=\"m-auto text-base py-[18px] px-3 md:px-4 w-full md:px-5 lg:px-4 xl:px-5\">\n<div class=\"mx-auto flex flex-1 gap-4 text-base md:gap-5 lg:gap-6 md:max-w-3xl lg:max-w-[40rem] xl:max-w-[48rem]\">\n<div class=\"group\/conversation-turn relative flex w-full min-w-0 flex-col agent-turn\">\n<div class=\"flex-col gap-1 md:gap-3\">\n<div class=\"flex max-w-full flex-col flex-grow\">\n<div class=\"min-h-8 text-message flex w-full flex-col items-end gap-2 whitespace-normal break-words text-start [.text-message+&amp;]:mt-5\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"a7726821-41e5-468e-bf3d-a27cf0a1c4e5\" data-message-model-slug=\"gpt-4o\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[3px]\">\n<div class=\"markdown prose w-full break-words dark:prose-invert dark\">\n<p style=\"text-align: left;\"><span style=\"font-size: 20px;\">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.<\/span><\/p>\n<p style=\"text-align: left;\"><span style=\"font-size: 20px;\">\u201cThis defendant enriched himself through a fraudulent investment scheme that targeted retirement funds and harmed vulnerable communities,\u201d said U.S. Attorney Martin Estrada. \u201cToday\u2019s sentence demonstrates our commitment to fighting for victims and holding fraudsters accountable.\u201d<\/span><\/p>\n<h3 style=\"text-align: left;\"><span style=\"font-size: 20px;\"><strong>Two Fraudulent Schemes<\/strong><\/span><\/h3>\n<h4 style=\"text-align: left;\"><span style=\"font-size: 20px;\"><strong>BNZ Capital Scheme (May 2019 \u2013 October 2021)<\/strong><\/span><\/h4>\n<p style=\"text-align: left;\"><span style=\"font-size: 20px;\">Barber, along with co-conspirator Louis Zimmerle and marketers, falsely claimed that BNZ Capital bought, sold, and flipped real estate. They promised investors \u201cguaranteed\u201d returns of 8%-10% and assured them their funds were \u201csafe\u201d and \u201cFDIC insured.\u201d<\/span><\/p>\n<p style=\"text-align: left;\"><span style=\"font-size: 20px;\">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.<\/span><\/p>\n<ul style=\"text-align: left;\">\n<li><span style=\"font-size: 20px;\"><strong>Total Raised:<\/strong> $13.8 million<\/span><\/li>\n<li><span style=\"font-size: 20px;\"><strong>Estimated Losses:<\/strong> At least $7 million<\/span><\/li>\n<li><span style=\"font-size: 20px;\"><strong>Barber\u2019s Personal Gain:<\/strong> $2.93 million<\/span><\/li>\n<li><span style=\"font-size: 20px;\"><strong>Victims:<\/strong> At least five elderly investors suffered severe financial hardship.<\/span><\/li>\n<\/ul>\n<h4 style=\"text-align: left;\"><span style=\"font-size: 20px;\"><strong>National American Capital (NAC) Scheme (2021)<\/strong><\/span><\/h4>\n<p style=\"text-align: left;\"><span style=\"font-size: 20px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-3918 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice-300x300.png\" alt=\"Two Men Arrested for Allegedly Operating One of the Largest Synthetic Drug Smuggling Rings\" width=\"300\" height=\"300\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice-300x300.png 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice-150x150.png 150w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice.png 350w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>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.<\/span><\/p>\n<p style=\"text-align: left;\"><span style=\"font-size: 20px;\">In October 2021, Barber lied to an undercover agent posing as an investor, falsely stating that NAC:<\/span><\/p>\n<ul style=\"text-align: left;\">\n<li><span style=\"font-size: 20px;\">Had been in business for 20 years.<\/span><\/li>\n<li><span style=\"font-size: 20px;\">Owned 10 properties in Laguna Beach.<\/span><\/li>\n<li><span style=\"font-size: 20px;\">Had developed a four-plex in Newport Beach.<\/span><\/li>\n<li><span style=\"font-size: 20px;\"><strong>Losses from NAC Scheme:<\/strong> $3.5 million<\/span><\/li>\n<li><span style=\"font-size: 20px;\"><strong>Barber\u2019s Personal Gain:<\/strong> $388,669<\/span><\/li>\n<\/ul>\n<p style=\"text-align: left;\"><span style=\"font-size: 20px;\">Barber also failed to disclose that he had been barred by FINRA from acting as a broker-dealer.<\/span><\/p>\n<h3 style=\"text-align: left;\"><span style=\"font-size: 20px;\"><strong>Legal Consequences<\/strong><\/span><\/h3>\n<ul style=\"text-align: left;\">\n<li><span style=\"font-size: 20px;\"><strong>Pretrial Violation:<\/strong> 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.<\/span><\/li>\n<li><span style=\"font-size: 20px;\"><strong>Zimmerle\u2019s Sentence:<\/strong> 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.<\/span><\/li>\n<\/ul>\n<h3 style=\"text-align: left;\"><span style=\"font-size: 20px;\"><strong>Civil and Federal Actions<\/strong><\/span><\/h3>\n<p style=\"text-align: left;\"><span style=\"font-size: 20px;\">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.<\/span><\/p>\n<p style=\"text-align: left;\"><span style=\"font-size: 20px;\">The FBI led the investigation with substantial assistance from the SEC.<\/span><\/p>\n<p style=\"text-align: left;\"><span style=\"font-size: 20px;\"> Assistant U.S. Attorneys Maxwell K. Coll and Anne C. Gannon prosecuted the case.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS 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. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Brett Barber\u00a0 promised investors,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":57995,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-57994","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - 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