Baton Rouge Man Indicted in $13M Investment Fraud Scheme Involving Greenwing Capital Management
A federal grand jury has indicted a Baton Rouge man on 18 counts of mail fraud for allegedly executing a multi-million-dollar investment fraud scheme.
According to the indictment, James R. Holdman solicited and received millions of dollars in investments in his hedge fund, Greenwing Capital Management, LLC. He then allegedly lost approximately 98% of the funds he received.
Instead of telling investors about the losses, however, authorities allege that Holdman falsely reported that the investments were earning positive rates of return.
“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,” alleged authorities, “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.”
The indictment further alleges that Holdman intentionally concealed the failed investments for a period of approximately nine months.
Authorities claim investors in Mississippi, Florida, and Louisiana lost around $13 million in the alleged scheme.
For additional information about this Baton Rouge investment loss case, click here.