A Costa Mesa man’s fraudulent real estate scheme targeting elderly investors ends with a 15-year federal prison sentence, leaving victims devastated and millions lost.
At a Glance
- Brett Barber sentenced to over 15 years for $17 million real estate fraud scheme
- Elderly investors targeted with false promises of 8-10% returns
- Fraudulent activities conducted under BNZ Capital and National American Capital
- Barber personally gained nearly $3 million from investor funds
- SEC filed civil charges; restitution hearing scheduled for January 2025
Elderly Investors Duped in Massive Real Estate Scam
Brett Barber, a Costa Mesa resident, has been sentenced to over 15 years in federal prison for orchestrating a fraudulent real estate investment scheme that swindled investors out of $17 million. The scam, which primarily targeted elderly individuals, promised returns of 8 to 10 percent through bogus real estate deals. Barber, along with his co-conspirator Louis Zimmerle, operated under the guise of legitimate businesses such as BNZ Capital One LLC and National American Capital.
The fraudulent activities took place from May 2019 to October 2021, during which time BNZ Capital raised approximately $13.8 million, resulting in actual losses estimated at $7 million. Barber personally pocketed nearly $3 million from investor funds, using the money for his own benefit rather than legitimate real estate investments. While some properties were purchased, none were developed or benefited investors financially.
Newport Beach investor faces criminal probe for alleged house-flipping fraud https://t.co/ZaySM8L6wl
— The Real Deal California (@trdsocal) August 7, 2024
Deceptive Practices and False Promises
Barber’s schemes involved a web of lies and deception. BNZ Capital falsely claimed that investor funds were “FDIC insured” and promised “guaranteed” returns, neither of which was true. The company also misrepresented its business activities, claiming to buy, sell, and flip real estate when in reality, no such profitable transactions were taking place.
“There may not have been bloodshed, but this was real violence. [The defendant] knew these people were in their golden years, and he just took it all,” said Judge Otis D. Wright II.
Adding to the severity of his crimes, Barber failed to disclose his previous barring by FINRA from acting as a broker-dealer, a crucial piece of information that would have alerted potential investors to his questionable past. The second scheme involving National American Capital caused an additional loss of at least $3.5 million to unsuspecting investors.
Legal Consequences and Ongoing Investigations
Barber pleaded guilty to two counts of wire fraud and one count of criminal contempt. His legal troubles didn’t end with the initial indictment; after violating the terms of his pretrial release, he was re-arrested in March 2023 and has remained in federal custody since. A restitution hearing is scheduled for January 9, 2025, to address the financial damages inflicted on the victims.
The case, investigated by the FBI with assistance from the SEC, has also triggered civil actions. The SEC has filed charges against Barber, Zimmerle, and BNZ Capital, with litigation still pending. This multi-pronged approach demonstrates the seriousness with which federal authorities are treating financial crimes that target vulnerable populations.
Orange County Man Pleads Guilty to Running Investment Scams That Raised More Than $17 Million Via False Promises of House Flipping Profits @FBILosAngeleshttps://t.co/SUnpFBhIWz
— FBI (@FBI) November 2, 2023
A Warning to Potential Fraudsters and Investors Alike
The case shows the need for increased vigilance among investors, especially those approaching or in retirement. The hefty sentence handed down to Barber sends a clear message that white-collar crimes, particularly those targeting the elderly, will be met with severe consequences.
