SANTA ANA (CNS) - A Coto de Caza man pleaded guilty today in connection with schemes that promised significant returns for investments in the medical and dental industries, but instead caused more than $2 million in losses to his victims.
David Rose, 57, pleaded guilty to one count each of wire and mail fraud.
Over six years until May 2011, Rose got physicians to invest in an Irvine-based company, M.D. Venture Partners. He promised big returns as well to dentists and orthodontists for their investments in Technology Innovation Partners. The money, he told investors, would be used to develop technology that could remove wisdom teeth from children without surgery.
The investors' money instead was used to pay for the defendant's expenses such as a $7,500 per month rent for a Cota de Caza home, college tuition, luxury cars, a Sea Ray boat worth $80,000 and shares in the Green Bay Packers, according to the plea agreement.
Rose ripped off about 32 victims in the M.D. Ventures scheme, causing them to lose more than $900,000, according to the agreement. He allegedly ripped off another 45 victims of more than $1.4 million in the scheme involving Technology Innovation Partners.
Rose, who was arrested in May 2013, has remained behind bars since then.
Rose is scheduled to be sentenced Nov. 24. He could face up to 40 years in federal prison.