Royce Newcomb, a 62-year-old entrepreneur from Fresno, was sentenced to five years and 10 months in prison for running a fraud scheme involving $4.2 million. According to the U.S. Attorney's Office, he defrauded investors, lenders, and the federal government using his company, Strategic Innovations, which claimed to develop smart home products.
Newcomb, who was once mentioned by Time Magazine for an invention, is accused of running a fraudulent business. Court documents say he lied to investors about receiving a grant from the National Science Foundation and got over $260,000 in COVID-19 relief loans by giving false information about his company’s revenue. “Our office will continue to work closely with the FBI to root out fraudsters who steal from private victims and from the federal government,” said Acting U.S. Attorney Michele Beckwith. FBI Special Agent in Charge Sid Patel said, “He lured his victims into the scheme with slick marketing and false promises to ensure investors trusted him and would be unlikely to question his claims,” as reported by the U.S. Attorney's Office.
While on federal supervised release for a 2011 real estate fraud case, Newcomb applied for COVID-19 relief loans using false information. "He lied about Strategic Innovations having hundreds of thousands and even millions in revenue to get these loans," the U.S. Attorney's Office said. The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Joseph Barton and Jeffrey Spivak as part of the California COVID-19 Fraud Enforcement Strike Force.
