Operating through two Newport-based companies, BNZ Capital LLC and National American Capital, Barber lured investors with claims of guaranteed 8% to 10% returns and assurances that their funds were “FDIC insured”. These promises masked a fraudulent operation where investor money was diverted to pay off Barber and his associates rather than being used to purchase real estate, as advertised.
According to court documents, BNZ Capital alone generated $13.8 million from investors, at least five of whom were elderly. Barber personally pocketed nearly $3 million from the scheme.
“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 US Attorney Martin Estrada.
As federal investigators began probing BNZ Capital, Barber shifted gears and launched a similar scheme under National American Capital. This second operation caused an additional $3.5 million in investor losses, with Barber personally taking nearly $390,000.