An Orange County man has been handed a sentence exceeding 15 years in federal prison after masterminding a house flipping investment scam, targeting elderly investors among others, and misappropriating more than $17 million, reports KTLA. Brett Barber, 45, along with his associates promised sizable returns of up to 10% on real estate ventures that proved largely nonexistent.
From May 2019 until October 2021, Barber was engaged in fraudulent activities via a Newport Beach-based company, BNZ Capital One LLC, as well as another enterprise formed in January 2021 called National American Capital (NAC), which operated under a similar pretense; meanwhile, Barber's co-conspirator, 65-year-old Louis Zimmerle of Sacramento, was involved only in the first scheme, as detailed in a publication from the U.S. Department of Justice. According to prosecutors, Barber and Zimmerle deceived investors, claiming their funds were "safe" and "FDIC insured," but instead of fulfilling promises, these funds were used to enrich themselves and to maintain the illusion of a functioning business by paying off earlier investors.
In a statement during the sentencing hearing, United States District Judge Otis D. Wright II condemned the actions, saying "There may not have been bloodshed, but this was real violence," according to the Department of Justice. United States Attorney Martin Estrada emphasized the commitment of his office to protect vulnerable communities from such fraudulent schemes, seeking justice for the harmed investors.
Investigations led by the FBI revealed that Barber pursued another deceptive operation with NAC even after becoming aware of the probe into BNZ Capital's affairs; it was during this period he was ensnared by an undercover operation that exposed additional deceptive claims, this scheme causing a loss of at least $3.5 million, as reported by KTLA. Barber's fraudulent conduct went a step further when he violated a court's direction to surrender after pretrial release violations eventually, he was apprehended in Santa Cruz County and transferred back to federal custody in Los Angeles.
Barber owned up to two counts of wire fraud and one count of criminal contempt in October 2023, resulting in his 181-month sentence on December 8, 2024, with restitution discussions set for January 9, 2025, highlights the Department of Justice. Zimmerle pleaded guilty to wire fraud and was sentenced to five years probation, a $10,000 fine, and ordered to pay $684,500 in restitution. Meanwhile, the SEC's civil charges for the trio for fraudulently raising more than $13 million remain in litigation.
