Michele Beckwith Acting U.S. Attorney | U.S. Attorney for the Eastern District of California
Royce Newcomb, a 62-year-old resident of Fresno, has pleaded guilty to charges of wire fraud and money laundering. Acting U.S. Attorney Michele Beckwith announced the plea related to a scheme where Newcomb allegedly stole $4.2 million from investors, lenders, and the federal government.
Court documents reveal that between 2017 and 2022, Newcomb operated Strategic Innovations, a technology startup that claimed to develop smart home and business products. These products were designed to prevent package theft and weather damage while aiding emergency responders and delivery services in locating addresses. The company's eLiT Address Box & Security System even earned a spot on Time Magazine's Best Inventions of 2021 list.
Newcomb reportedly misled investors by falsely claiming he had secured a grant from the National Science Foundation and would use their funds for product development. Instead, he spent the money on personal expenses such as gambling, luxury cars, and real estate. He also used investor funds for refunds and unrelated projects without consent.
Additionally, Newcomb obtained fraudulent loans during this period, including over $70,000 from the Small Business Administration under COVID-19 relief measures and more than $190,000 from private lenders by falsifying revenue figures for Strategic Innovations.
This is not Newcomb's first conviction; he was previously sentenced to over five years in prison for a real estate fraud scheme in Sacramento in 2011. At the time of his latest offenses, he was on federal supervised release.
The Federal Bureau of Investigation conducted the investigation leading to these charges. Assistant U.S. Attorneys Joseph Barton and Jeffrey Spivak are handling prosecution duties.
Newcomb's sentencing is set for May 5, 2025. He faces up to 20 years in prison with a $250,000 fine for wire fraud and up to 10 years with another $250,000 fine for money laundering. The court will determine his sentence based on statutory factors and Federal Sentencing Guidelines.
This case forms part of an initiative by the California COVID-19 Fraud Enforcement Strike Force operation aimed at tackling pandemic-related fraud across multiple states through interagency collaboration led by the U.S. Department of Justice.
