An investment professional who stung physicians, dentists and orthodontists for more than $2 million–and spent the money he received on a Cota de Caza home, college tuition, luxury cars, shares in the Green Bay Packers and the $80,000 boat shown above, cut a plea deal with federal prosecutors this week.
David Rose, 57, copped to single counts each of wire fraud and mail fraud, which carry maximum sentences of 20 years apiece in federal prison, according to the plea agreement read Monday. He was originally facing multiple counts of each kind of fraud.
According to the plea agreement, with promises of huge returns on investments, Rose convinced 45 dentists and orthodontists to contribute a total of $1.4 million in his company Technology Innovation Partners LP, which was said to be providing seed money for technology that would remove wisdom teeth from children without surgery. And this is true, if Rose was the only child served and "wisdom teeth" is how one refers to $5,000 monthly rent on a Coto de Caza house, the $80,000 Sea Ray boat, a $40,000 GMC Acadia and a stock offering in the Green Bay Packers.
(We wondered when the indictment has handed down in April 2013 if the assets seizure means the government now owns a piece of the Packers.)
Rose's second scheme involved his company M.D. Venture Partners LP, which had him coaxing 32 physicians to fork over a total of more than $900,000 in more phony medical technology supposedly being developed. But Rose instead spent that money on $7,500 monthly rent on another Coto de Caza house, $65,000 worth of vehicles for himself and family members, college tuition for his kids, and much more.
Rose, who has been behind bars since his May 2013 arrest, is scheduled to be sentenced Nov. 24.