A Costa Mesa man has been taken down by federal authorities for allegedly running a massive Ponzi scheme that swindled investors out of nearly $14 million. Brett Barber, 42, was arrested Thursday morning by FBI special agents and charged with four counts of wire fraud and two counts of money laundering.
According to court documents, since the spring of 2019, Barber and his accomplices raised money by falsely representing that their firm, BNZ Capital One, LLC, bought and sold real estate projects and "flipped" real estate for a profit. However, in reality, BNZ Capital did not take any substantial steps to develop the parcels, nor did they flip real estate for a profit. Instead, they primarily used investor funds to pay themselves, purchase residences, and repay earlier investors.
Barber, a co-owner of BNZ Capital, allegedly promised investors a guaranteed return of between 8 percent and 10 percent, as well as potential bonuses based on successful deals. He also falsely told investors that their funds were "safe" and "FDIC insured." In fact, Barber had previously been barred from acting as or associating with a broker-dealer by the Financial Industry Regulatory Authority (FINRA).
During the scheme, Barber, his accomplices, and marketers solicited or caused to be transferred to BNZ Capital approximately $13.8 million from victim investors. Investigators estimate that actual losses resulting from this alleged scheme are more than $9 million.
Barber’s accomplice, Louis Zimmerle, 62, of Sacramento, was charged with one count of wire fraud. Zimmerle agreed to plead guilty to the felony offense as part of a plea agreement.
The United States Securities and Exchange Commission filed a parallel civil lawsuit naming Barber, Zimmerle, and BNZ Capital. Barber is currently being held on a $800,000 bond and is expected to be released later today. A trial in this case has been scheduled for December 21.
Barber is facing up to 20 years in federal prison for the wire fraud charges and up to 10 years for the money laundering offense. The FBI is investigating this matter with the assistance of the SEC.
Defendant: Brett Barber
Criminal Charges: Four counts of wire fraud and two counts of money laundering
City and State: Santa Ana, California
Arrest Date: Thursday, [current date]
Sentence: Currently being held on a $800,000 bond, facing up to 30 years in federal prison
Dollar Amount: $13.8 million raised, over $9 million in actual losses
Key Facts
- State: California
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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