A San Diego man has admitted in federal court that he took money investors believed was headed for accessory dwelling unit projects and funneled it elsewhere, according to court records. Ethan Joseph Sanchez, 29, pleaded guilty yesterday to a federal wire fraud charge at a change-of-plea hearing following an FBI investigation into loans tied to his company, BSC Equity Ventures.
As reported by 10News, the plea agreement says Sanchez told investors that BSC Equity would finance and build ADUs, including at a property in La Mesa, and even invented an email persona named "Richard Aguilar" to make the deals look legitimate. Prosecutors say the money instead went into risky day trading, repaying earlier investors, and covering Sanchez's personal expenses, with total losses topping $8.2 million.
Prosecutors' original indictment
The criminal case started with an indictment unsealed in October 2025 that charged Sanchez with wire fraud and money laundering after an FBI probe. According to FBI San Diego, accounts controlled by BSC had taken in more than $6 million by February 2025, while less than $1.8 million was returned to investors.
How prosecutors say the scheme worked
Prosecutors say Sanchez leaned on slick paperwork and choreographed email exchanges to give his pitches a veneer of oversight and legitimacy. Earlier Hoodline coverage notes that he sometimes presented himself as a general partner and drafted fake back-and-forth messages to convince lenders that outside parties had vetted the deals.
Court hearing and schedule
The Southern District of California's calendar shows Sanchez appeared at the downtown Schwartz Courthouse yesterday for his change-of-plea hearing. According to 10News, the plea agreement sets his sentencing for September.
Legal implications and victims' options
By pleading guilty to a federal wire fraud count, Sanchez now faces a statutory maximum of 20 years in prison, along with possible restitution or forfeiture, according to the FBI. The bureau is collecting information from potential victims and has posted a questionnaire and contact instructions for anyone who loaned money to BSC Equity Ventures at fbi.gov/BSCEquityVictims.
The guilty plea is a sharp reminder of how fast high-return promises can turn into high-risk trouble. Authorities urge investors to scrutinize offers, keep detailed records, and report suspected fraud. Anyone who believes they were affected in this case can reach out to the U.S. Attorney's Office or the FBI's San Diego field office for guidance.
