3 hours ago
1
FRESNO, Calif. (KSEE/KGPE) - The proprietor of a exertion startup was sentenced aft stealing millions of dollars from investors, lenders, and the national government, according to the Department of Justice.
Royce Newcomb, a 62-year-old from Fresno, was sentenced connected Monday to 5 years and 10 months successful situation for ligament fraud and wealth laundering charges successful a long-running fraud scheme, wherever helium stole $4.2 cardinal from investors, lenders and the national government, according to the DOJ
Newcomb was besides the proprietor of Strategic Innovations betwixt 2017 done 2022, a startup that tribunal documents authorities was intended to make astute location and concern products meant to halt bundle theft, forestall upwind harm to packages, and marque it easier for exigency responders and transportation services to find homes and businesses.
The DOJ said it developed prototypes of his products that received section and nationalist media attraction for them - 1 of them was included connected Time Magazine's Best Inventions of 2021 list.
The DOJ says Newcomb made respective mendacious representations to his inventors to deceive them retired of their money, including saying that the National Science Foundation awarded him a assistance that helium would usage the investors' wealth to further make and bring his products to the marketplace - instead, helium utilized the funds for gambling and wage for a Mercedes, a Jaguar and a mansion.
Court documents besides study that helium utilized the wealth to wage for refunds to different investors who wanted retired and to wage for new, unrelated projects without the investors' authorization. Additionally, the DOJ said helium besides received a fraudulent COVID-19 indebtedness for much than $190,000 from backstage lenders, aft lying astir the startup having adjacent millions successful gross to get the loans.
Newcomb was antecedently convicted federally successful 2011 for moving a existent property fraud strategy successful Sacramento. Back then, helium was sentenced to much than 5 years successful prison, and helium was connected national supervised merchandise for that discourtesy erstwhile helium committed the offenses charged successful this case.
