Robert L. Holloway, Investment Fraud, Utah 2007
San Diego Investment Manager Accused of Running $25 Million Scam
A San Diego investment manager has been accused of running a $25 million investment scam, according to a federal indictment unsealed in Utah.
Robert L. Holloway, 54, was arrested in San Diego on charges of wire fraud and tax evasion, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney David B. Barlow for the District of Utah.
According to the indictment, Holloway operated an investment entity called US Ventures LC, which was founded in 1999. Holloway allegedly recruited investors by making false representations about the investment entity, claiming it used proprietary trading software and had over $32 million under management.
The indictment alleges that US Ventures raised more than $25 million from investors for its trading activities, but lost more than $10 million in trading between 2005 and 2007. Holloway allegedly generated and distributed false reports to investors, showing fake daily returns and profit distributions.
Holloway is also accused of misappropriating investor funds for personal expenses, including his then-wife's eBay business and his own lifestyle. In 2006, he diverted over $1.2 million in investor funds to a business account used for his personal use, despite falsely filing a personal tax return claiming a gross income of only $27,500.
Holloway faces up to 20 years in prison and a fine of $250,000 for each count of wire fraud, as well as up to three years in prison and a fine of $100,000 for tax evasion.
Robert L. Holloway, 54, of San Diego, Calif. was arrested on October 23, 2007 and made his initial appearance in the Southern District of California. He is currently in custody pending trial.
This case is being prosecuted by Trial Attorney Thomas B.W. Hall and Deputy Chief Charles La Bella of the Fraud Section in the Criminal Division and Assistant U.S. Attorney Mark Y. Hirata for the District of Utah.
Key Facts
- State: Utah
- Category: Financial Crimes
- Source: DOJ Press Release â†â€â€
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