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Developer’s $50M Securities Scam Unfolds
A commercial real estate developer and mortgage broker has pleaded guilty to a $50 million securities fraud scheme in California.
Bradley Holcom, 55, entered his plea before U.S. District Judge Cathy Ann Bencivengo, admitting to wire fraud in connection with the sale of approximately $50 million worth of promissory notes.
According to court documents, Holcom operated an investment program called the Trust Deed Investment Program, soliciting investors to provide funds for the development of raw land for commercial and residential purposes.
However, Holcom falsely told investors that they would receive a first-position lien on a specific piece of property, but instead conveyed a lesser interest that did not allow investors to directly foreclose on the property to protect their investment.
As part of his plea, Holcom admitted that his conduct caused approximately $50 million in losses to over 50 victims, and he faces a maximum prison sentence of 20 years.
The case was investigated by the FBI’s Phoenix Division – Yuma Resident Agency, and the U.S. Securities and Exchange Commission provided substantial assistance.
Holcom is scheduled to be sentenced on July 25, 2014, and he faces a maximum fine of $250,000 or twice the gross pecuniary gain or loss, whichever is greatest.
Key Facts
- State: California
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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