California Couple Accused of $100 Million Stock Fraud Scheme
A glamorous couple from southern California, who were previously celebrated in financial publications, now face serious criminal charges for allegedly orchestrating a massive $100 million securities fraud and money laundering operation. Brett Rosen, 45, and Deborah Braun Rosen, 44, have been indicted on 24 counts including conspiracy, securities fraud, and money laundering conspiracy.
The Alleged Pump-and-Dump Operation
According to federal prosecutors from the US Attorney's Office for the Southern District of California, the Rosens operated through their joint investment business, RB Capital Partners, Inc. From 2020 through at least June 2024, they allegedly financed, promoted, and sold stock in six publicly traded companies while engaging in deceptive market manipulation.
The companies involved in the scheme include:
- Optec International, Inc.
- Sunshine Biopharma, Inc.
- BlockQuarry Corp.
- Solar Integrated Roofing Corp.
- Cyberlux Corp.
- Ilustrato Pictures International, Inc.
Prosecutors claim the couple provided investors and the broader market with false and misleading information about their financial backing and stock holdings in these firms. While publicly promoting these companies as solid investments, they secretly sold their own shares at inflated prices, netting substantial illicit profits.
Funding a Lavish Lifestyle
The alleged fraudulent proceeds were used to finance what authorities describe as a lofty lifestyle in San Diego's exclusive La Jolla Shores neighborhood. Investigators claim the couple purchased a multi-million-dollar mansion with funds obtained through their scheme, though property records show neither is officially listed as an owner.
Brett Rosen is associated with a $1.8 million home, while Deborah Braun Rosen's last known address was at a $7 million estate featuring six bedrooms, four bathrooms, a tennis court, and a large billiards room. Both are only named as residents at these addresses in official records.
Parallel SEC Complaint
The Securities and Exchange Commission has filed a separate civil complaint against the Rosens, alleging they netted over $26 million in illicit profits from their scheme. The SEC also named former Solar Integrated Roofing Corporation CEO David M. Massey as a defendant in their case.
According to the SEC complaint, Rosen tweeted about Solar Integrated Roofing on dozens of occasions from 2021 to March 2024, publicly praising the company as a good investment while simultaneously selling his own shares. In one particularly egregious example from August 2022, Rosen tweeted that RB Capital will NOT be dumping any shares into the open market while allegedly selling at least 115,000 shares that same day.
The SEC further alleges that Massey instructed Solar to issue a false press release in February 2023 claiming the company had secured a $10 million revolving credit facility with a top bank. Following this announcement, Solar's stock surged 40 percent and trading volume skyrocketed by nearly 500 percent.
Legal Proceedings and Potential Consequences
Prosecutors filed a 24-count indictment against the couple on January 16, though the filing is currently sealed. Brett Rosen appeared in court on Thursday in relation to the Justice Department's case and was released on a $500,000 bond. Records pertaining to the case against Deborah Braun Rosen were not immediately available.
If convicted on all charges, the couple could face decades in prison and millions of dollars in fines. The SEC is demanding a jury trial in their parallel case, though no date has been set.
Irony of Previous Financial Recognition
In a striking contrast to their current legal troubles, the Rosens were featured in the Top 100 People in Finance magazine in August 2021 for their work with RB Capital Partners. The now-deleted article touted RB Capital's great model and favorable returns and mentioned how the Rosens had to shut down their website after receiving too many investment inquiries.
At the time, Rosen told the publication: For us, transparency is the biggest thing. We are a shareholder in all of these companies, and we believe in them. There is no other company like us that would ever be as transparent as we are. We even post copies of our notes and investments on Twitter. He added that he and his wife care a lot about the companies they invest in and giving back to the community.
The case highlights the sophisticated nature of modern securities fraud and the substantial resources authorities are dedicating to combat such financial crimes. As the legal proceedings unfold, the stark contrast between the Rosens' public financial persona and the serious allegations against them continues to draw attention from both financial and legal observers.
