A San Diego Accountant Stole $8.2 Million in a Fake Backyard-Home Investment Scam.
Published November 4, 2026
A San Diego accountant who promised investors easy money from California's backyard-home boom is going to federal prison — and not a single backyard home was ever built. Ethan Joseph Sanchez, 30, was sentenced on October 30, 2026, to 63 months in federal prison for wire fraud, after admitting in a plea agreement that he stole more than $8.2 million from people who believed their money was financing accessory dwelling units. ADUs are small secondary homes — granny flats, backyard cottages — built on single-family lots. U.S. District Judge Robert S. Huie also ordered Sanchez to forfeit more than $8.2 million and to pay restitution to the victims.
The pitch: real trend, fake projects
Sanchez, a certified public accountant, ran the scheme through a company called BSC Equity Ventures LLC. Beginning in 2022, prosecutors say, he solicited loans by claiming the money would finance real estate transactions — including building ADUs on specified properties. Investors were promised their principal back promptly, plus interest: in some cases as much as 25%. To make the operation look more legitimate, Sanchez used a fictitious identity, a supposed associate named Richard "Rick" Aguilar. The pitch worked because the trend underneath it was real: California has streamlined ADU rules for years, and homeowners across the state really are building them.
Where the money actually went
In his plea agreement, Sanchez admitted the claims were lies: he funded none of the real estate transactions investors believed they were financing, built no ADUs, and lost his victims' money in risky day trading. The FBI reported in February 2025 that BSC Equity Ventures had taken in more than $6 million from investors and returned less than $1.8 million. By sentencing, the total stolen had passed $8.2 million.
The victims recruited each other
The harm spread the way these schemes often do — through trust. Victims recruited additional investors, sometimes including members of their own families, so the losses landed on whole networks of relatives and friends. One investor, identified only as Brooke in an interview with ABC 10News in San Diego, said he borrowed against his own home to invest, lost his savings, and had to come out of retirement and return to work. U.S. Attorney Adam Gordon summed up the case in a statement: "Ethan Sanchez exploited the trust of hardworking people and stole their savings through lies and fabricated investments."
The red flags in this case — and in the next pitch you hear
ADUs themselves are legitimate, and so are many private real estate investments. What made this one a fraud was the gap between the story and any verifiable fact. If you are ever offered an investment like this, the warning signs in this case are the ones to watch for:
Guaranteed, unusually high returns. Promises of interest as high as 25%, with principal returned promptly, are not how construction lending works. Real projects hit delays, cost overruns, and slow markets.
A project you cannot verify. Investors were told their money would build ADUs on specified properties. Real deals come with addresses, permits, and paperwork you can check with the city — before you send money, not after.
People who do not exist. The operation leaned on a fictitious associate. Verify the humans: licenses, business registrations, and a track record that does not depend on the promoter's own say-so.
Recruitment through friends and family. When an "opportunity" spreads through trusted circles, skepticism drops. Being invited by someone you love is not due diligence — sometimes, as here, the recruiter is a victim too.
Informal loans and pressure to move fast. Money sent as handshake loans, outside escrow and without independently reviewed documents, is money you may never be able to trace.
If a deal involves property, run the numbers yourself before anyone asks for a check: our free mortgage calculator (/calculator) helps you model what a purchase or project actually costs. And if you are buying a home or weighing an ADU build of your own, a licensed local agent helps. Our AI agent match (/match) connects you with local experts, and our guide on how to find a real estate agent (/guides/how-to-find-a-real-estate-agent) walks through how to check credentials before you hire anyone.
FAQ
What is an ADU?
An accessory dwelling unit is a small secondary home on the same lot as a single-family house — a backyard cottage, a converted garage, or an attached granny flat. California encourages ADUs to add housing without new subdivisions.
What did Ethan Sanchez do?
The San Diego accountant solicited loans through BSC Equity Ventures LLC starting in 2022, claiming the money would finance real estate deals including ADU construction, with interest promised as high as 25%. He admitted the claims were false: no deals were funded, no ADUs were built, and he lost the money day trading.
What was Ethan Sanchez's sentence?
On October 30, 2026, U.S. District Judge Robert S. Huie sentenced him to 63 months in federal prison for wire fraud, and ordered him to forfeit more than $8.2 million and pay restitution to victims.
How much did investors lose?
Prosecutors say Sanchez stole more than $8.2 million. The FBI reported in February 2025 that his company had taken in more than $6 million while returning less than $1.8 million to investors.
Are ADU investments legitimate?
Yes — ADUs are a legal, state-encouraged form of housing in California, and real, permitted projects exist all over the state. This fraud used the trend as a costume. The difference is verifiability: real projects have addresses, permits, licensed professionals, and documents you can confirm independently.
We covered this story in Ep 67 of Brick by Brick, our real estate news podcast: Brick by Brick on YouTube (https://www.youtube.com/@Brick-By-Brick-26).