Santa Ana, California - A Yorba Linda chiropractor who solicited more than $2 million from investors in a real estate scam has been sentenced to four years in federal prison.
Bobby Hamby, 56, of Yorba Linda, was sentenced Monday afternoon by United States District Judge Cormac J. Carney, who also ordered the defendant to pay $1,257,628 in restitution.
Hamby pleaded guilty in May 2015 to two counts of wire fraud in connection with a real estate investment scheme he operated while doing business as B+E Family Investments LLC.
Hamby told investors that he would use the money invested in B+E to purchase and improve properties, resell the properties at a profit, and then share the profits with investors. Hamby falsely assured victims that their investments would be secure because he would put their names on the property deeds. At least 22 victims – some of whom were elderly – invested nearly $2.5 million with B+E during the scheme that ran from May 2008 through December 2011.
According to a plea agreement filed in this case, Hamby did not invest the victims’ money as promised. Instead, he spent the majority of his victims’ money to pay for personal expenses. Among other things, Hamby used the money to pay his mortgage, dues at the Yorba Linda Country Club, car payments, attorney fees, medical and dental bills, and expenses incurred at restaurants and several retail stores.
“As a result of Mr. Hamby’s scheme, a number of victims will live out their lives under a dark cloud of financial uncertainty,” said United States Attorney Eileen M. Decker. “Mr. Hamby must now trade the comfortable life that he financed with his victims’ money for this federal prison sentence.”
In addition to the real estate scheme, Hamby also fraudulently solicited investors to finance laser equipment for his chiropractic office. In this separate scheme, Hamby collected approximately $150,000 from November 2010 through May 2011, but used only about $5,000 on laser equipment, spending most of the money on personal expenses that including mortgage payments and private school tuition for his children.
After returning some of the investor’s money in Ponzi-style payments, the total loss for both schemes totaled approximately $1.25 million.
This case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney Gregory W. Staples.