A Fresno man is heading to prison for stealing millions of dollars in a wire fraud and money laundering scheme.
Royce Newcomb, 62, was sentenced to five years and 10 months in prison for wire fraud and money laundering charges.
The big picture: Newcomb stole $4.2 million from investors, lenders and the federal government through his fraud scheme.
- Newcomb owned technology startup Strategic Innovations from 2017 to 2022. The company purported to make smart home and business products meant to stop package theft, prevent weather damage to packages and make it easier for emergency responders and delivery services to find homes and businesses.
- His business received national media attention, including getting listed in Time Magazine’s Best Inventions of 2021 list.
Zoom in: Despite the popularity, Newcomb lied to investors to cheat them out of their money. He said he had been awarded a grant from the National Science Foundation, which he would use to further develop and bring his products to market. Instead, Newcomb used the money for gambling and purchased a Merced, a Jaguar and a mansion. He also used the money to pay refunds to other investors who wanted out.
- Further, Newcomb received a fraudulent COVID-19 loan from the Small Business Administration worth over $70,000. He also received fraudulent loans worth over $190,000 from private lenders by lying about Strategic Innovations having millions of dollars in revenue.
Flashback: This isn’t Newcomb’s first run-in with the law. He was convicted federally in 2011 for running a real estate fraud scheme in Sacramento and was sentenced to over five years in prison.
- Newcomb was on federal supervised release for the previous offense when he committed these latest offenses.
What they’re saying: “Fraud schemes like this one are devastating to the victims, and prosecuting the perpetrators is one of our highest priorities,” said Acting U.S. Attorney Beckwith. “Our office will continue to work closely with the FBI to root out fraudsters who steal from private victims and from the federal government.”
- Special Agent in Charge Sid Patel of the FBI Sacramento Field Office added, “Royce Newcomb’s greed and disregard for the law while on supervised release adds salt to his victims’ financial wounds and serves as a cautionary tale for would-be investors. He lured his victims into the scheme with slick marketing and false promises to ensure investors trusted him and would be unlikely to question his claims. The FBI encourages all investors to research individuals and companies prior to making a financial commitment. We also encourage anyone who feels they may have invested in a fraud scheme to report their concerns promptly.”
