An Orange County man involved in a home flipping investment scam that victimized at least five elderly investors and collected more than $17 million has been sentenced to more than 15 years in prison, federal authorities announced Monday.
In a news release from the U.S. Department of Justice, prosecutors say 45-year-old Brett Barber, of Costa Mesa, along with a co-conspirator, identified as 65-year-old Luis Jimard of Sacramento, sold investors up to 10% off fake real money. A real estate transaction that promised a profit of.
According to authorities, Barber participated in two schemes between May 2019 and October 2021 to steal property and money from victims.
In the first case, a 45-year-old man who was co-owner of a Newport Beach-based company called BNZ Capital One LLC falsely stated that the company bought and sold real estate projects and “flipped” properties. went. Barber, Zimmerle, and other co-conspirators “guaranteed” returns of 8% to 10%, along with potential bonuses, and told victims that their funds were “FDIC-insured” and “secure.” ”.
“Although BNZ Capital purchased some properties, no steps were taken to develop the plots, nor did BNZ sell the properties for profit,” prosecutors said. “Rather, BNZ primarily used investor funds to pay Mr Barber and Mr Zimar and others involved in the scheme, including the purchase of the house in which Mr Barber and Mr Zimar lived. Some of the funds were used to repay previous investors.
Authorities say Mr. Barber, Mr. Zimare and their co-conspirators transferred nearly $14 million of the victims’ funds to BNZ Capital, and the Costa Mesa man transferred nearly $3 million of that money for personal gain. It is said that it was kept in.
“At least five BNZ Capital investors were elderly and vulnerable victims who experienced significant hardship due to the fraud perpetrated against them,” the prosecutor added.
Once Barber learned that BNZ Capital was under investigation, he launched a second scheme involving a company he founded in January 2021 called Nation American Capital (NAC). This company operated in the same way as BNZ.
During a sting operation in October 2021, the 45-year-old unknowingly met with an undercover agent who he believed was a potential investor in NAC. The 45-year-old lied to the agent and said his new company had been in business for more than 20 years, owned 10 lots in Laguna Beach, and had bought property in Newport Beach and turned it into a fourplex. spoke.
Prosecutors say the scheme resulted in $3.5 million in losses and left Barber with almost $400,000.
The 45-year-old was indicted by a federal grand jury in October 2021 and released on bail. In January 2023, he was found to have violated his pretrial release and was ordered to turn himself in by January 13, but he did not appear in court.
He was located in Santa Cruz County in March 2023, taken into custody and transported to Los Angeles, where he remains in jail.
“This defendant amassed wealth through a fraudulent investment scheme that collected millions of dollars from the retirement accounts of his victims, including senior citizens,” said U.S. Attorney Martin Estrada.
Barber pled guilty to two counts of wire fraud and one count of criminal contempt in October 2023 and was sentenced to 181 months in federal prison on December 8, 2024. A restitution hearing is scheduled for January 9, 2025.
“There may not have been any bloodshed, but this was real violence. [Brett Barber] He just accepted everything because he knew these people were in their golden years,” U.S. District Judge Otis Wright said at the sentencing hearing.
Zimel pleaded guilty in January 2022 to one count of wire fraud and was sentenced to five years’ probation, a $10,000 fine, and ordered to pay nearly $700,000 in restitution.
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