Prosecutors say he used a real estate pitch and a fake identity to solicit loans through his company.
SAN DIEGO, CA — A San Diego man is accused of running a multimillion-dollar investment fraud that took in at least $6 million from investors across the United States, federal officials said this week. The 29-year-old, identified as Ethan Joseph Sanchez, was arrested in late October and later indicted on wire fraud and money laundering charges connected to loans raised through BSC Equity Ventures.
Authorities say the case matters now because investigators are still mapping the scope of losses and potential victims, while a federal court case begins to move forward. Prosecutors allege Sanchez promised high returns from real-estate deals, including home purchases, renovations and accessory dwelling unit projects, but diverted money and used new funds to pay earlier investors. The FBI has asked people who believe they were affected to come forward as agents and prosecutors in the Southern District of California prepare the government’s evidence and the court sets its next deadlines.
According to the indictment, the scheme began in 2022 and centered on short-term “loan” agreements to BSC Equity Ventures, which Sanchez claimed would finance specific real-estate transactions. The pitches, delivered in person and via messages, offered annualized returns as high as 25% and were described as secured by collateral or personal guarantees. Prosecutors allege those assurances were false. By February 2025, investigators say BSC accounts had received more than $6 million, while less than $1.8 million had been returned to investors, largely as interest payments and partial redemptions. In some communications, Sanchez allegedly used a fictitious name, “Richard ‘Rick’ Aguilar,” to deal with prospective lenders and to lend an air of independence to the operation. Sanchez was taken into custody in late October and pleaded not guilty after the indictment was unsealed in early November, according to court records.
Federal officials said the case file includes bank records, investor agreements and messages that describe how funds were routed after deposits. Investigators say money flowed through BSC Equity Ventures accounts and, in multiple instances, was not applied to the properties cited in the pitch documents. Agents are working to identify “dozens” of people who provided money, with losses ranging from a few thousand dollars to six-figure amounts. “We aggressively investigate financial crimes and will continue pursuing those who exploit trust for profit,” FBI San Diego Special Agent in Charge Mark Dargis said. The indictment lists charges of wire fraud and money laundering and notes a statutory maximum penalty of 20 years in prison on the fraud count, with additional penalties possible if the government proves money laundering related to the alleged scheme. The filing does not list a final victim tally, and restitution totals remain unknown.
Court documents say Sanchez told investors that funds would support purchases, renovations and the construction of accessory dwelling units on specific parcels, describing collateral addresses and target timelines. Officials allege those details were used to create the appearance of secured, low-risk lending. In reality, investigators say, projects were delayed, nonexistent or not owned by the company. The government’s timeline places key deposits in 2023 and early 2025, followed by growing complaints from investors about missed payments. Some investors were repaid small amounts that prosecutors describe as consistent with a Ponzi-style pattern. Records also outline the use of an alternate identity and claims about outside partners to bolster credibility. Defense filings argue Sanchez was operating a legitimate business that encountered cash-flow problems and dispute that investors were misled, setting up a likely fight over intent and the meaning of the documents at trial.
People who say they invested have described a confident pitch and persistent follow-ups. One investor, who asked to be identified only as Brooke because the case is pending, said the promises “felt solid at first,” but payments slipped and explanations shifted. Another acquaintance said Sanchez “was good at reading the room” and steered conversations toward collateral and quick turnarounds. Neighbors near one address listed in paperwork said they saw little sign of active construction during the period the projects were advertised. In interviews, investors expressed worry about retirement savings and college funds. “This is big money for people who saved all their lives,” Brooke said. None of the witnesses The Associated Press spoke with reported receiving full repayment.
Procedurally, the case is assigned to the U.S. District Court for the Southern District of California under a 2025 criminal docket. Sanchez has entered a not-guilty plea and is represented by counsel. The court has set preliminary deadlines for motions and discovery while the parties discuss schedules for witness lists and evidence disclosures. Prosecutors said the investigation remains active, including efforts to identify additional victims and to trace assets that could be subject to forfeiture. Any further charges would be detailed in superseding filings if approved by a grand jury. A status conference is expected in the coming weeks; trial timing will depend on pretrial motions, the court’s calendar and the scope of evidence the government plans to present.
Financial crime cases involving promises of high returns and real-estate collateral have surfaced in San Diego and elsewhere in recent years, with investigators warning that the mix of rapid development and private lending can mask basic gaps in documentation. The alleged conduct in this case echoes elements seen in other prosecutions: a simple pitch, specific property descriptions, and early, small repayments that build confidence before larger asks. Unlike prior matters that ended with quick plea agreements, this case appears headed toward a fuller contest over whether written terms matched how the money moved. For investors looking on, the outcome will shape restitution orders and any future forfeiture actions if the government is able to recover funds.
As of today, Sanchez remains charged and presumed innocent. Federal agents are continuing outreach to locate additional investors tied to BSC Equity Ventures and to confirm the chronology of deposits and withdrawals. The next public milestone is expected at the defendant’s upcoming status hearing, when the judge could set firm motion deadlines and a tentative trial window. Further updates are likely when investigators finish reviewing bank data and when the court posts its scheduling order.
Author note: Last updated January 10, 2026.