Royce Newcomb, 62, of Fresno, was sentenced to nearly six years in prison Monday, June 30, 2025, for running a $4.2 million fraud scheme through his technology startup, deceiving investors, and obtaining fraudulent loans while on federal supervised release. (GV Wire Composite/File)
- Royce Newcomb sentenced to nearly six years for a $4.2 million fraud scheme involving investors, SBA loans, and personal misuse.
- Newcomb’s startup falsely claimed NSF grants; funds were diverted to gambling, luxury cars, a mansion, and unrelated projects.
- He committed fraud while on supervised release for a previous real estate scheme conviction, worsening harm to victims, FBI says.
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A Fresno man was sentenced Monday to nearly six years in federal prison for orchestrating a $4.2 million fraud scheme through his technology startup, authorities announced.
Royce Newcomb, 62, was sentenced to five years and 10 months behind bars after being convicted on wire fraud and money laundering charges stemming from a scheme that targeted investors, lenders, and the federal government, Acting U.S. Attorney Michele Beckwith said.
Newcomb owned Strategic Innovations, a tech startup that claimed to develop smart home and business products designed to prevent package theft and help emergency responders and delivery services locate addresses more easily. The company gained local and national attention, including a 2021 mention in Time Magazine’s Best Inventions list for its eLiT Address Box & Security System.
Investors’ Funds Go to Gambling, Mansion, Luxury Cars
However, according to court documents, from 2017 through 2022, Newcomb deceived investors by falsely claiming he had received a grant from the National Science Foundation and that their money would be used to develop and market his products. Instead, Newcomb diverted the funds for personal expenses such as gambling, luxury cars including a Mercedes and Jaguar, and a mansion, prosecutors said.
He also used investor funds to pay refunds to other investors and to finance unrelated projects without approval.
Newcomb further obtained fraudulent COVID-19 relief loans totaling over $70,000 from the Small Business Administration and more than $190,000 from private lenders by falsely inflating his company’s revenue figures.
Previous Conviction for Real Estate Fraud
FBI Sacramento Special Agent in Charge Sid Patel noted Newcomb’s “greed and disregard for the law” compounded the harm to victims, especially since Newcomb committed these crimes while on supervised federal release from a previous conviction.
Newcomb was previously sentenced in 2011 to more than five years in prison for a real estate fraud scheme in Sacramento. He was on supervised release for that conviction when he perpetrated the latest offenses.
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