- Created on Tuesday, 22 July 2014 21:58
- Written by IVN
Santa Ana, California - An Orange County man pleaded guilty to defrauding dozens of doctors and others of more than $2 million in separate schemes that promised large returns on investments in the medical and dental fields.
David Rose, 57, of Coto de Caza, pleaded guilty today in United States District Court to one count of wire fraud and one count of mail fraud.
According to court documents, over a six-year period that ran through May 2011, Rose solicited physicians to invest in an Irvine company he called M.D. Venture Partners (MDVP) and falsely promised lucrative returns on investments in emerging medical technologies.
In a subsequent scheme, Rose used Technology Innovation Partners (TIP) 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.
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-a-month rent for a house in Coto de Caza, college tuition, luxury vehicles, an $80,000 Sea Ray boat and shares in the Green Bay Packers.
The investigation revealed that no money was invested by either MDVP or TIP.
In the MDVP scheme, Rose caused approximately 32 victims to lose more than $900,000, according to court documents. In the TIP scheme, 45 victims lost more than $1.4 million.
Rose was arrested in May 2013 and has remained in custody since that time.
Rose pleaded guilty before United States District Judge James V. Selna, who is scheduled to sentence the defendant on November 24. At sentencing Rose faces a maximum statutory sentence of 40 years in federal prison.
The case against Rose is the product of an ongoing investigation by the Federal Bureau of Investigation.