Local Man Indicted in $13 Million Investment Fraud Scheme
|U.S. Attorney’s Office February 28, 2013|
BATON ROUGE, LA—United States Attorney Donald J. Cazayoux, Jr. announced today that a federal grand jury returned an indictment on February 27, 2013, charging James R. Holdman with 18 counts of mail fraud for his role in executing a fraudulent investment scheme.
According to the indictment, Holdman operated a hedge fund called Greenwing Capital Management LLC. As the owner and operator of the fund, Holdman solicited and received millions of dollars in investment funds from the victim investors. The indictment alleges that from approximately February 2008 to October 2008, Holdman concealed a failed investment plan by falsely representing to the victim investors that their investments were earning positive rates of return when, in fact, Holdman had lost over 98 percent of their funds.
The indictment alleges by making these false representations, Holdman was able to conceal his failed investment plan and defraud the victim investors into keeping their remaining money with Greenwing Capital or investing more money in it, thereby allowing Holdman to continue receiving money in the form of fees for his own personal use and benefit. In order to continue to conceal his fraud, Holdman continued to put the victim investors’ money at risk in an attempt to recoup his losses.
FBI Special Agent in Charge Michael J. Anderson stated, “Those individuals who prey on a vulnerable investing public, especially during such challenging economic times, will continue to be held fully accountable.”
U.S. Attorney Donald J. Cazayoux, Jr. stated, “Prosecuting those who commit investment fraud in the district will continue to be a priority as we strive to protect the public and to deter wrongdoers.”
The case is being prosecuted by Assistant U.S. Attorney Shubhra Shivpuri. The joint investigation is being 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.
An indictment is a determination by a grand jury that probable cause exists to believe that offenses have been committed by a defendant. The defendant is presumed innocent until and unless proven guilty at trial.
Source: Department of Justice – FBI