An investment professional who stung physicians, dentists and orthodontists for $2.3 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–was sentenced in Santa Ana federal court Monday to nearly five years in prison.
U.S. District Court Judge James Selna also ordered David Rose, who has been in custody since May 2013, to pay full restitution.
The 58-year-old cut a plea deal with federal prosecutors last July that had him pleading guilty to single counts each of wire fraud and mail fraud, which carry maximum sentences of 20 years apiece in federal prison. Rose was originally facing multiple counts of each kind of fraud.
According to the plea agreement, Rose promised huge returns on investments by 45 dentists and orthodontists who contributed $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. But Rose instead used the money for his $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.
Rose also pulled a second scheme involving another one of his Irvine companies, M.D. Venture Partners LP, which had him coaxing 32 physicians to fork over more than $900,000 for more phony medical technology supposedly being developed. 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.