Michael S. Holcomb, Ponzi Scheme, Oregon 2018

EUGENE, Ore. – A pair of Oregon brothers has been sentenced to federal prison for their roles in a multi-year Ponzi scheme that victimized hundreds of innocent investors.

Michael S. Holcomb, 74, and Gary L. Holcomb, 72, both of Junction City, Oregon, were sentenced to 72 months in federal prison followed by three-year terms of supervised release. The brothers were the principal managing partners of Berjac of Oregon, an insurance premium financing business based in Eugene and Portland, Oregon.

Between 2008 and 2012, the Holcomb brothers solicited investments purportedly used to finance loans to small businesses to pay for those businesses’ insurance premiums. Investors were promised between five and seven percent returns. However, the pair went to extraordinary lengths to conceal the misdirection of investor funds and the underperformance of investments.

The brothers used their clients’ money to invest in speculative real estate projects, to fund generous lifestyles, and to satisfy other personal financial obligations. They were aided in their scheme by their daughters, Jennifer L. Chalmers, 46, of Eugene, and Kristen S. Van Breeman, 44, of Happy Valley, Oregon, who worked as office managers at Berjac of Oregon and Berjac of Portland, respectively.

Chalmers and Van Breeman each received five years’ probation and 250 hours of community service. “The Holcomb brothers and their heirs apparent victimized hundreds of innocent Oregonians while perpetrating Lane County’s largest-ever Ponzi scheme,” said 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.”

The case was investigated by the FBI and IRS Criminal Investigation, and prosecuted by Assistant U.S. Attorneys Scott E. Bradford and Gavin W. Bruce. The victims of the scheme were left with significant financial losses, with many losing their life savings to the defendants’ greed and dishonesty.

The sentencing of the Holcomb brothers marks the end of a long and complex case that has left many Oregonians reeling. The case serves as a reminder of the devastating consequences of white-collar crime and the importance of holding those responsible accountable for their actions.

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