Businessman accused of using doctors’ investments on cars, boats
An Orange County businessman has been indicted by a federal grand jury on charges of defrauding dozens of doctors and dentists out of money to fund his own powerboats, luxury cars and stock in the Green Bay Packers.
David Rose, 56, of Coto de Caza, was indicted Wednesday in Santa Ana on multiple counts of mail and wire fraud. A federal warrant for his arrest was issued.
FBI spokesman Laura Eimiller said the agency has been informed that he is traveling in Asia.
Rose is accused of running two schemes beginning in March 2005, using companies called M.D. Venture Partners LP and Technology Innovation Partners LP.
He solicited physicians to invest in MDVP and falsely represented lucrative investment opportunities in emerging medical technologies, according to the indictment.
Prosecutors allege that Rose used investor funds for personal expenses, including $7,500 a month to rent a house in Coto de Caza; tuition and other college fees for his children; $65,000 for vehicles used by himself and his family; jewelry; attorney’s fees and other expenses.
An FBI investigation revealed no money was ever invested in companies developing new medical technology, according to the indictment, which also said Rose caused about 32 victims to lose more than $800,000 in the scheme.
In a subsequent scheme, the indictment said, the defendant solicited dentists and orthodontists to invest money in TIP, claiming the money would be pooled and invested in a company developing technology for the removal of wisdom teeth in children without surgery.
During their investigation, it said, FBI agents determined that none of the money was used for that purpose and that Rose allegedly used it to pay $5,000 a month rent for another house in Coto de Caza; tuition and other college fees for his children; $80,000 for a Sea Ray boat; $40,000 for a GMC Acadia; and a stock offering in the Green Bay Packers.
In that case, he is alleged to have defrauded 45 victims of more $1 million. Rose’s multiple bank accounts, vehicles and the powerboat were seized Monday by the FBI, according to Eimiller.
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