Scam promised "safe" investments but left victims out of millions, including retirement savings
A 45-year-old Orange County man has been sentenced to 15 years in federal prison for orchestrating a house-flipping investment scam that swindled over $17 million from investors, including retirees.
Brett Barber, 45, pleaded guilty in October 2023 to two counts of wire fraud and one count of contempt for violating the terms of his pretrial release.
Brett Barber pleaded guilty to charges of wire fraud and contempt for violating the terms of his pretrial release. He admitted to orchestrating a scam that promised lucrative returns but instead funnelled money into his personal accounts and those of his associates.
Operating through two Newport-based companies, BNZ Capital LLC and National American Capital, Barber lured investors with claims of guaranteed 8% to 10% returns and assurances that their funds were "FDIC insured". These promises masked a fraudulent operation where investor money was diverted to pay off Barber and his associates rather than being used to purchase real estate, as advertised.
According to court documents, BNZ Capital alone generated $13.8 million from investors, at least five of whom were elderly. Barber personally pocketed nearly $3 million from the scheme.
"This defendant enriched himself through a fraudulent investment scheme that solicited millions of dollars from retirement funds belonging to his victims, including older adults," said US Attorney Martin Estrada.
As federal investigators began probing BNZ Capital, Barber shifted gears and launched a similar scheme under National American Capital. This second operation caused an additional $3.5 million in investor losses, with Barber personally taking nearly $390,000.
The scheme unraveled in October 2021 when Barber, unaware he was speaking to an undercover federal agent, continued to make false claims about his business. A federal grand jury indicted him later that month.
Released on bond after his indictment, Barber violated the terms of his pretrial release by fleeing authorities. His disappearance prompted a two-month manhunt by the US Marshals Service, which ended with his capture in Santa Cruz County in March 2023.
"There may not have been bloodshed, but this was real violence," US District Judge Otis Wright II said during the sentencing. "[The defendant] knew these people were in their golden years, and he just took it all."
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