A Fresno businessman has pleaded guilty to running a fraud scheme that stole $4.2 million from investors.
Royce Newcomb, the owner of technology startup Strategic Innovations, now awaits his sentencing.
Driving the news: Strategic Innovations made smart home and business products to prevent package theft, weather damage to packages and to make it easier for emergency responders and delivery services to find homes and businesses.
- Newcomb received national media attention for his products but made several false representations to investors to cheat them out of their money.
- One such falsity was telling investors he had been awarded a grant by the National Science Foundation and that he would use money from investors to further develop and bring his products to market, which was not true. Newcomb actually used the money to pay for gambling, a Mercedes, a Jaguar and a mansion, as well as giving refunds to other investors who wanted out.
- Further, Newcomb also received a fraudulent COVID-19 loan for over $70,000 from the Small Business Administration, as well as fraudulent loans of over $190,000 from private lenders. Newcomb lied about his company having millions of dollars in revenue to get the loans.
Flashback: Running a fraud scheme is not new for Newcomb. In 2011, he was convicted in a federal court for running a real estate fraud scheme in Sacramento.
- Newcomb was sentenced to five years in prison for that offense and was on supervised release when he committed these latest crimes.
What we’re watching: Newcomb is scheduled to be sentenced on May 5.
- He faces a maximum of 20 years in prison and a $250,000 fine for the wire fraud charge and 10 years in prison and a $250,000 fine for the money laundering charge.