Crime & Safety

Coto Man Accused of Swindling Doctors to Fund Lavish Lifestyle

FBI agents raided the accounts and property of a Coto de Caza man indicted in an alleged scheme to bilk $2 million from doctors and dentists with phony investments.

A Coto de Caza man accused of masterminding an investment scheme in which 77 physicians and dentists lost nearly $2 million is expected to surrender soon to face federal charges, authorities said today.

An indictment returned by a federal grand jury on Wednesday against 56- year-old David William Rose charges him with mail and wire fraud and money laundering dating back eight years.

Rose, the owner of Irvine-based M.D. Venture Partners LP and Technology Innovation Partners LP, is accused of "offering to doctors and dentists phony investments in emerging medical and dental technologies," according to the indictment.

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From March 2005 to about May 2011, Rose solicited doctors to invest money in M.D. Venture Partners, with the defendant receiving a 2.5 percent management fee, according to the indictment.

The indictment alleges that instead of investing the money in emerging medical technology, Rose used it 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.

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"No money was ever invested in companies developing new medical technology," the indictment alleges.

The M.D. Venture Partners scheme caused about 32 doctors to lose more than $800,000, according to the indictment.

The indictment further alleges that from June 2011 to the present, Rose solicited about 45 dentists and orthodontists to hire Technology Innovation Partners to invest money in a company they were told was developing ablation technology for wisdom teeth removal in children without surgery.

Investors were told they would pay a 10 percent management fee to Rose, the indictment alleges.

Instead of investing the money on the dental technology, Rose is accused of spending $5,000 a month to rent a house in Coto de Caza, paying college tuition for his children, sorority dues for his daughter, $80,000 for a Sea Ray boat, $40,000 for a GMC Acadia, a stock offering in the Green Bay Packers and other personal expenses, such as life insurance premiums and credit card bills.

The indictment alleges the dentists and orthodontists lost more than $1 million.

FBI agents on Monday executed warrants and seized multiple bank accounts and the boat.

Rose was traveling somewhere in Asia when the indictment was filed, but authorities have been in touch with his attorney and are arranging for the defendant to surrender, said FBI spokeswoman Laura Eimiller.

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- City News Service


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