A California man convinced dozens of investors to pour millions of dollars into a real estate venture he claimed would deliver big returns through the construction of backyard homes.
But the 30-year-old accountant lost more than $8.2 million of their money in risky stock market trades and not a single accessory dwelling unit (ADU) was built, prosecutors said.
Ethan Joseph Sanchez, of San Diego, was sentenced to 63 months in federal prison after admitting to orchestrating the investment fraudscheme, the U.S. Attorney’s Office for the Southern District of California announced Friday.
“Ethan Sanchez exploited the trust of hardworking people and stole their savings through lies and fabricated investments,” U.S. Attorney Adam Gordon said in a statement. “This sentence reflects the profound harm he caused.”
Sanchez, who was a certified public accountant at the time and operated through his business, BSC Equity Ventures LLC., repeatedly lied to his victims as to how their investment funds would be used, according to prosecutors.
The scheme began back in 2022 when Sanchez allegedly began soliciting loans from investors, falsely claiming the money would fund real estate ventures, including the construction and renovation of ADUs.
He promised the investors they would receive their principal back as soon as possible, with an above-average return of interest, in some cases as much as 25%.
Sanchez also allegedly used a fictitious identity, Richard “Rick” Aguilar, to make the investment opportunities appear more legitimate.
But prosecutors say Sanchez used the investors’ funds for day trading and in most cases lost the money. He did not fund the real estate transactions he said the investors were financing nor did he build any of the ADUs he said would be financed with the investors’ money.
The FBI reported in February 2025 that BSC Equity Ventures had received over $6 million in investments from its investors, while Sanchez returned less than $1.8 million to them.
At the sentencing hearing on Oct. 30, U.S. District Judge Robert S. Huie ordered Sanchez to forfeit over $8.2 million and to pay restitution to victims.
He described the scheme as “aggravated and reprehensible,” highlighting how Sanchez had used existing victims to recruit additional investors, sometimes including members of their own families.
The judge described the harm caused by the scheme as “almost unimaginable,” adding that the consequences went far beyond the financial losses.
In a January 2026 interview with ABC 10News, one investor, identified only as Brooke, said the loss he suffered forced him out of retirement and back to work to rebuild his savings.
Brooke told the outlet that Sanchez told him he needed money to refinance his portfolio of investment properties and would pay interest on the loans. Sanchez initially borrowed $40,000 from Brooke in December 2023, but then continued to borrow more money, including a $150,000 loan.
Sanchez made small payments, Brooke said, but never repaid the full amount of his investment. Brooke also said that he had borrowed against his home to make the investment with Sanchez and was paying interest on that money.
“It was always lie after lie,” he said. “And then it became so obvious that this was a Ponzi scheme.”
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