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Investment Fraud Scheme Unravels in Louisiana
Investment fraud has left a devastating trail in its wake, with many of the most vulnerable members of our community being targeted. In a case that highlights the severity of this crime, James R. Holdman, a 59-year-old hedge fund manager from Zachary, Louisiana, has been sentenced to 60 months in prison for his role in a $7.9 million investment fraud scheme.
According to the indictment, Holdman operated a hedge fund called Greenwing Capital Management, LLC, which he used to solicit and receive millions of dollars in investment funds from unsuspecting investors. Many of these investors were retirees, including former military veterans and survivors of Hurricane Katrina, who hailed primarily from South Louisiana and Mississippi.
Throughout 2008, Holdman’s investments suffered substantial losses, but he concealed this information from his investors by falsely representing that their accounts were earning positive rates of return. This allowed him to continue receiving fees for his own personal use and benefit, even as he continued to put his investors’ money at risk in an attempt to recoup his losses.
The scheme came to a head in October 2008, when Holdman sent out a form letter to his investors falsely informing them that a sharp downturn in the stock market had caused a 98.67% loss in their investment over a one-month period. In fact, Holdman had been steadily losing his investors’ money throughout the year.
U.S. Attorney Walt Green praised the efforts of his team and their law enforcement partners, saying, ‘Investment fraud is a devastating crime that goes on far too often. We will continue to pursue such matters aggressively, particularly when the victims include some of our community’s most vulnerable.’
The case was prosecuted by Assistant U.S. Attorneys Shubhra Shivpuri and Chris Dippel, with a joint investigation conducted by the Federal Bureau of Investigation, the Louisiana Office of Financial Institutions, the Texas State Securities Board, and the Securities and Charities Division of the Mississippi Office of the Secretary of State.
Holdman was sentenced to 60 months in prison, followed by two years of supervised release, and ordered to pay the victims of his scheme $7,910,074 in restitution.
The case serves as a stark reminder of the importance of vigilance in the face of investment schemes, and the need for law enforcement to continue pushing back against those who would seek to take advantage of the most vulnerable members of our community.
Key Facts
- State: Louisiana
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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