House flipping scam in Southern California cons victims out of $17 million 

An Orange County man involved in a house flipping investment scam that victimized at least five elderly investors and raised more than $17 million has been sentenced to more than 15 years in federal prison, officials announced Monday.  

In a U.S. Department of Justice news release, prosecutors say 45-year-old Costa Mesa resident Brett Barber, along with co-conspirators identified as 65-year-old Sacramento resident Louis Zimmerle, promised investors returns of up to 10% from bogus real estate deals.  

Barber participated in two schemes to steal property and money from victims between May 2019 and October 2021, authorities said.  

In the first, the 45-year-old, a co-owner of a Newport Beach-based company called BNZ Capital One LLC, falsely represented that the firm bought and sold real estate projects and “flipped” properties. Barber, Zimmerle and other co-conspirators “guaranteed” returns between 8% and 10% along with potential bonuses and even told victims that their funds were “FDIC insured” and “safe.”  

“While BNZ Capital did purchase some real estate, it did not take any steps to develop parcels, nor did BNZ flip real estate for a profit,” prosecutors said. "Rather, BNZ primarily used investor funds to pay Barber, Zimmerle, and others associated with the scheme, including purchasing residences where Barber and Zimmerle lived. Some of the investors’ money was used to repay earlier investors.” 

Authorities said that Barber, Zimmerle and their co-conspirators transferred nearly $14 million of victims’ funds to BNZ Capital, with the Costa Mesa resident keeping nearly $3 million of that for personal gain.  

“At least five BNZ Capital investors were elderly, vulnerable victims who suffered substantial hardship because of the fraud committed against them,” prosecutors added. 

When Barber learned BNZ Capital was under investigation, he launched the second scheme involving a company he formed in Jan. 2021 called Nation American Capital (NAC), which operated in the same manner as BNZ.  

In an Oct. 2021 sting operation, the 45-year-old unknowingly met with an undercover agent who he believed was a potential investor in NAC. The 45-year-old lied to the agent, saying his new company had been in business for more than 20 years, that they owned 10 parcels of land in Laguna Beach and had purchased a Newport Beach property that they turned into a fourplex.

That scheme, prosecutors said, caused a loss of $3.5 million, with Barber pocketing almost $400,000.  

The 45-year-old was indicted by a federal grand jury in Oct. 2021 and released on bond. In Jan. 2023, after he was found to have violated his pretrial release, he was ordered to surrender by Jan. 13 but never appeared.  

He was located in Santa Cruz County in March 2023, taken into custody and transferred to Los Angeles where he remains behind bars.  

“This defendant enriched himself through a fraudulent investment scheme that solicited millions of dollars from retirement funds belonging to his victims, including older adults,” said United States Attorney Martin Estrada. 

Barber pleaded guilty in Oct. 2023 to two counts of wire fraud and one count of criminal contempt and was sentenced on Dec. 8, 2024, to 181 months in federal prison. A restitution hearing has been scheduled for Jan 9, 2025.  

“There may not have been bloodshed, but this was real violence. [Brett Barber] knew these people were in their golden years, and he just took it all,” U.S. District Judge Otis Wright said during the sentencing hearing.  

Zimmerle pleaded guilty in Jan. 2022 to one count of wire fraud, was sentenced to five years probation, fined $10,000 and ordered to pay nearly $700,000 in restitution.