Man Indicted for Real Estate Investment Scam

Allison Tussey —  April 26, 2011 — Leave a comment

Royce Newcomb, 49, Granite Bay, California, was arrested on charges of wire fraud in an investment fraud scheme.

According to the five-count indictment, from January 2009 to February 2010, Newcomb and another individual operated an investment scheme that solicited people to invest in purported purchases of real estate. He promised the investors that he would take care of purchasing the property for them in exchange for a small fee or percentage of the purchase price. In order to make the investment opportunity appear more legitimate, Newcomb told investors that he was using an escrow account at Contour Escrow Services Inc. In fact, Contour was run by a co-schemer who did not have a license to perform escrow services.

The indictment alleges that Newcomb took in hundreds of thousands of dollars from investors, but instead of purchasing real estate, Newcomb used the investors’ money to pay purported returns to earlier investors as part of a “Ponzi” scheme, thus misleading his victims into believing that their investments were profitable. A significant amount of the victims’ money was used for Newcomb‘s personal benefit.

This case is the product of an extensive investigation by the United States Secret Service. Assistant United States Attorneys Matthew Segal and Todd Pickles are prosecuting the case.

United States Attorney Benjamin B. Wagner announced the indictment.

 

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