A commercial real estate developer has been sentenced to 121 months in prison for his role in a $50 million securities fraud scheme in California.
Bradley Holcom, 57, of Canby, Oregon, previously pleaded guilty to wire fraud in connection with the sale of approximately $50 million worth of promissory notes to more than 150 investors located throughout the United States.
Holcom admitted to soliciting investors to provide funds for the development of raw land for commercial and residential purposes through an investment program he called the Trust Deed Investment Program. However, he falsely told investors they would receive a lien on a specific piece of property, when in fact he never provided investors with a lien.
Instead, Holcom conveyed a lesser interest that did not allow investors to directly foreclose on the property to protect their investment. He also admitted to selling the properties that were supposedly serving as the security for the promissory notes without informing investors.
Despite his declining financial condition in 2008 and 2009, Holcom continued to solicit investors by misrepresenting the manner in which he would use their investments. As a result of the scheme, Holcom admitted that his conduct caused approximately $50 million in losses to investors.
U.S. District Judge Cathy Ann Bencivengo of the Southern District of California imposed the sentence, ordering Holcom to pay restitution to his victims, with the final amount to be determined at a subsequent hearing.
The case was investigated by the FBI’s Phoenix Division – Yuma Resident Agency and is being prosecuted by Trial Attorney Henry P. Van Dyck and Deputy Chief Daniel Braun of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney Mark Pletcher of the Southern District of California. The U.S. Securities and Exchange Commission also provided substantial assistance.
Assistant Attorney General Leslie R. Caldwell, U.S. Attorney Laura E. Duffy, and Special Agent in Charge Douglas G. Price made the announcement.
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Key Facts
- State: California
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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