Fresno tech magnate Royce Newcomb has been handed a heavy penalty for orchestrating a $4.2 million fraud scheme through his technology startup, Strategic Innovations. The 62-year-old was sentenced today to five years and ten months in prison by Acting U.S. Attorney Michele Beckwith for wire fraud and money laundering charges.
Newcomb’s fraudulent enterprise spanned from 2017 to 2022, during which he used deceptive tactics to siphon funds from investors, lenders, and the federal government. The cunning scam involved false claims of grant funding from the National Science Foundation and promises to develop innovative smart home products.
According to court documents, Newcomb exploited his victims by spending their money on personal luxuries such as a Mercedes, Jaguar, and a mansion, while also refunding other investors under false pretenses. He even misused funds for unrelated projects without authorization. The FBI Sacramento Field Office’s Special Agent in Charge Sid Patel emphasized the gravity of Newcomb’s actions, highlighting that his behavior on supervised release after a previous fraud conviction was a betrayal to both victims and justice.
Adding insult to injury, Newcomb also defrauded the Small Business Administration and private lenders out of more than $260,000 through false claims about Strategic Innovations’ revenue. His previous conviction for real estate fraud in 2011 and subsequent supervised release only emboldened his latest criminal endeavors.
This investigation was a collaboration between the FBI and Assistant U.S. Attorneys Joseph Barton and Jeffrey Spivak. The case is part of the California COVID-19 Fraud Enforcement Strike Force, which combats large-scale pandemic relief fraud. The strike force’s efforts are crucial in identifying and bringing justice to those who have stolen pandemic relief funds.
For investors looking to avoid falling prey to such schemes, Patel’s advice to research thoroughly before committing financial resources is a stark reminder of the importance of due diligence in today’s complex market.
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- Sacramento Con Man Gets 4+ Years for $1.1M Tax Heist · California
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Cybercrime|Public Corruption
- Source: Official Source ↗
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