Royce Newcomb, a 62-year-old resident of Fresno, has been sentenced to five years and ten months in prison. He was found guilty of wire fraud and money laundering charges for orchestrating a scheme that defrauded investors, lenders, and the federal government out of $4.2 million. Acting U.S. Attorney Michele Beckwith made the announcement.
“Fraud schemes like this one are devastating to the victims, and prosecuting the perpetrators is one of our highest priorities,” said 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 commented on Newcomb’s actions: “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.” Patel emphasized the importance of researching individuals and companies before investing.
Court documents revealed that between 2017 and 2022, Newcomb operated Strategic Innovations, a technology startup claiming to develop smart home products. These products were intended to prevent package theft and weather damage while aiding emergency responders. Despite receiving media attention, including being featured in Time Magazine’s Best Inventions of 2021 list, Newcomb misled investors about receiving a National Science Foundation grant and misused their funds for personal expenses such as gambling, luxury cars, and a mansion.
Newcomb also obtained fraudulent loans during this period, including over $70,000 from the Small Business Administration through a COVID-19 relief loan and more than $190,000 from private lenders by falsely inflating his company’s revenue figures.
Previously convicted in 2011 for real estate fraud in Sacramento, Newcomb was on federal supervised release when he committed these offenses. The case was investigated by the Federal Bureau of Investigation with Assistant U.S. Attorneys Joseph Barton and Jeffrey Spivak prosecuting.
This prosecution is part of California’s COVID-19 Fraud Enforcement Strike Force operation aimed at addressing large-scale pandemic relief fraud.
