Coto Man Given 6 Years for Investment Scheme Targeting Doctors

A Coto de Caza man was sentenced today to nearly five years in federal prison for schemes in which he promised significant returns for investments in the medical and dental industries, but instead caused more than $2 million in losses to his victims.

David Rose, 58, pleaded guilty July 21 to one count each of wire and mail fraud.

Rose’s daughter pleaded for mercy from U.S. District Judge James Selna before he handed down the 57-month prison term for her father.

“I am here today to show my faith and love, and I’m here to support him as he supported me throughout my life,” Melissa Rose told the judge, adding that she believed her father had learned his lesson.

The defendant told Selna he was “embarrassed and ashamed of my actions” and would “dedicate the rest of my life” to paying back his victims.

“I have a moral and legal responsibility to pay restitution,” Rose said, adding he wanted to set an example for his family.

“I’d like to apologize to each and every one of my investors, some of whom I’ve known for 20 years,” he said. “I’d also like to apologize to my family and friends.”

Selna ordered Rose to pay $2.3 million in restitution.

Rose got physicians to invest in an Irvine-based company, M.D. Venture Partners, by promising big returns on emerging medical technology in which he claimed the firm was involved.

He also targeted dentists and orthodontists for their investments in separate entity, Technology Innovation Partners. The money, he told those investors, would be used to develop technology that could remove wisdom teeth from children without surgery.

The investors’ money instead was used to cover the defendant’s expenses, such as a $7,500 per month rent for a Cota de Caza home, college tuition, luxury cars, a Sea Ray boat worth $80,000 and shares in the Green Bay Packers, according to the plea agreement.

Rose ripped off about 32 victims in the M.D. Ventures scheme, causing them to lose more than $900,000, according to the agreement. He ripped off another 45 victims of more than $1.4 million in the scheme involving Technology Innovation Partners.

He operated both schemes over a six-year period ending in May 2011.

Rose was arrested in May 2013 and has remained behind bars since then.

• City News Service