Holcomb Brothers’ Ponzi Scheme Lands Them in Federal Prison

EUGENE, Ore. – Justice, however delayed, came Tuesday for the architects of Lane County’s largest-ever Ponzi scheme. U.S. District Court Judge Michael J. McShane handed down stiff sentences to Michael S. Holcomb, 74, and Gary L. Holcomb, 72, both of Junction City, Oregon. The brothers received 72 months in federal prison, followed by three years of supervised release, for bilking over 400 investors out of their life savings.

The scheme, orchestrated through their companies Berjac of Oregon and Berjac of Portland, wasn’t some fly-by-night operation. Between 2008 and 2012, the Holcombs presented themselves as legitimate insurance premium financiers, promising investors returns of five to seven percent. But the money wasn’t going to legitimate business loans. It was a house of cards, built on stolen funds used to fuel speculative real estate deals, lavish vacations, and a generally opulent lifestyle for the Holcombs themselves.

Their daughters, Jennifer L. Chalmers, 46, of Eugene, and Kristen S. Van Breeman, 44, of Happy Valley, Oregon, weren’t strangers to the fraud. Both served as office managers – Chalmers at Berjac of Oregon, Van Breeman at Berjac of Portland – and were fully aware of the scheme’s mechanics. They anticipated inheriting the business, a grim reward for their complicity. However, their roles earned them lighter sentences: five years’ probation and 250 hours of community service each.

“The Holcomb brothers and their heirs apparent victimized hundreds of innocent Oregonians,” stated U.S. Attorney Billy J. Williams. “These defendants robbed investors of not only their hard-earned money, but also the months and years spent diligently investing for college, retirement and other financial goals. It is unlikely these victims will ever be made whole.” The sentiment echoed the devastation felt by those who lost everything.

FBI Special Agent in Charge Renn Cannon minced no words. “For years, the owners of the Berjac of Oregon and Berjac of Portland firms treated their clients like personal ATM’s,” he said. “When the scheme finally came crashing down in August 2012, more than 400 victims discovered the promised rewards were nothing more than lies.” The collapse wasn’t an accident; it was the inevitable result of a fundamentally dishonest operation. All four defendants pleaded guilty last September to charges including conspiracy to commit mail and wire fraud and money laundering.

The investigation, a joint effort by the FBI and IRS Criminal Investigation, was led by Assistant U.S. Attorneys Scott E. Bradford and Gavin W. Bruce. While the sentencing offers a measure of closure, the financial wounds inflicted on the victims will likely linger for years to come. This case serves as a stark reminder: if something sounds too good to be true, it almost certainly is.

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