David Rose, of Coto de Caza man was sentenced to 57 months in federal prison for defrauding physicians and others out of more than $2 million in a phony investment in medical technology companies.
In addition to the 57 months of incarceration, U.S. District Court Judge James V. Selna ordered David Rose to pay $2.3 million in restitution for the more than 75 doctors and dentists he defrauded.
In 2013, a federal grand jury indicted Rose on fraud and money laundering charges. The charges were tied to M.D. Venture Partners LP and Technology Innovation Partners LP, both Irvine-based businesses Rose owned and operated.
Authorities alleged, Rose promised investors he would pool their money and invest it in companies that were developing new medical technology, including a technique to remove childrens wisdom teeth without surgery. Rather than invest their money, he spent it on a variety of personal expenses, including renting a Coto de Caza home, college tuition and related expenses for his children, new cars, jewelry and a variety of household expenses. None of the investment money was ever spent on actual investments.
M.D. Venture was the vehicle that Rose used to solicit money from doctors between 2005 and 2011 and Technology innovation was used to get money from dentists and orthodontists from 2011 to 2013.
Rose was arrested in May 2013 following an FBI investigation.