A California man at the center of a real estate scam that raised $13.8 million by falsely promising investors returns of up to 10% was sentenced to 15 years and one month in prison.
The Orange County Register reported Brett Barber, who was a co-owner of Newport Beach-based BNZ Capital One, pleaded guilty in October 2023 to two counts of wire fraud and one count of criminal contempt. Barber and his BNZ Capital One partner, Louis Zimmerle, raised $6.9 million from investors between June 2019 and February 2020, but only invested $2.7 million and generated less than $5,000 in profits; an additional $6 million was raised since March 2020.
By the time the duo’s scheme ran its course, their company invested $6.4 million of the total $13.5 million raised in real estate and alternative investment funds but barely generated $300,000 in profits. According to the charges against them, roughly $1.7 million was made in “Ponzi-like” payments to investors, while the pair also pocketed the investors’ funds. Investigators estimated the scheme totaled more than $9 million in losses.
The Securities and Exchange Commission launched a civil case in 2021 naming Barber, Zimmerle and their company as defendants. Barber was indicted and released on an $800,000 bond in October 2021, and but in January 2023 a Los Angeles federal judge revoked his bond and ordered him detained pending trial. Barber disappeared but was located and placed in custody four months later.
Zimmerle pleaded guilty to one count of wire fraud and was sentenced in June to five years’ probation and fined $10,000. He was ordered to pay restitution of $684,500. Barber’s restitution hearing is slated for next month.
Doesn’t seem to be much of a punishment so far. I guess Zimmerle wasn’t the main thief in this story.
It never pays to be a thief. Restitution amounts are a joke. They can never repay what they owe, and probably won’t be able to find jobs. Such a stupid way to live.
All that money Zimmerle and Barber stole and Zimmerle doesn’t spend any time in jail is just wrong!!! At the very least, they will never get a license to sell real estate or originate loans!
There was a Bret Barber here in the KC MO area that was charged with real estate fraud in the late 2000’s hum?
hmm is right!
Now that loan originators need to take a test to get their license and every year afterwards, sure hope something like this doesn’t happen again.