Crime & Safety

Coto de Caza Admits to Living Large on Money He Was Supposed to Invest

David Rose's targets were area doctors and dentists. He's facing a maximum statutory sentence of 40 years in federal prison.

A Coto de Caza man was convicted today of masterminding an investment scheme in which 77 physicians and dentists lost nearly $2 million.

David Rose, 57, pleaded guilty today in United States District Court to one count of wire fraud and one count of mail fraud, according to the U.S. Attorney's office.

Rose, the owner of Irvine-based M.D. Venture Partners LP and Technology Innovation Partners LP, was accused of "offering to doctors and dentists phony investments in emerging medical and dental technologies," according to a 2013 indictment. The  two schemes endured six years, ending in May 2011.

The investigation revealed that no money was invested by either company. Instead, Rose lived large, using the money for personal expenses, such as $7,500 a month to rent a house in Coto de Caza, tuition and room and board for his children at the University of Arizona, $65,000 for two new cars, jewelry for his wife, attorneys' fees, groceries, clothing and sporting goods, pet care, orthodontics, utility and credit card bills and restaurant dining.

In the M.D. Venture Partners scheme, Rose caused approximately 32 victims to lose more than $900,000, according to court documents. In the Technology Innovation Partners scheme, 45 victims lost more than $1.4 million. 

Sentencing is scheduled for Nov. 24. Rose is facing a maximum statutory sentence of 40 years in federal prison.



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