A man from Orange County in California who bilked dozens of doctors out of more than $2 million in schemes that promised large returns on investments in the medical and dental fields was sentenced to 57 months in federal prison.
David Rose, 58, of Coto de Caza, CA, was sentenced January 12 by U.S. District Judge James V. Selna, according to a statement from the U.S. Attorney's office.
Rose pleaded guilty in July to one count of wire fraud and one count of mail fraud.
Rose solicited practitioners over a six-year period to invest in an Irvine, CA, company he called M.D. Venture Partners (MDVP), promising lucrative returns on investments in emerging medical technologies. According to court documents, this solicitation ran through May 2011.
Rose then used Technology Innovation Partners (TIP) 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.
Throughout both schemes, investor funds were misused, with Rose using the money for personal expenses. He used investor funds to pay $7,500 monthly rent for a house in Coto de Caza, college tuition, an $80,000 Sea Ray boat, and shares in the Green Bay Packers, according to the plea agreement.
The investigation revealed that no money was invested by either MDVP or TIP.
Rose caused approximately 32 victims to lose more than $900,000 in the MDVP scheme, the U.S. Attorney's office said. In the TIP scheme, 45 victims lost more than $1.4 million. Judge Selna also ordered Rose to pay more than $2.3 million in restitution.
Rose was arrested in May 2013 and has remained in custody since that time.
"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 said.
The case followed an investigation by the FBI.