New York (HedgeCo.Net) – A Louisiana hedge fund manager has been sentenced to sixty months’ imprisonment as a result of a mail fraud scheme in which he defrauded investors out of millions of dollars, the DOJ reports. Zachary Holdman was also sentenced to serve two years of supervised release following his release from imprisonment and ordered to pay the victims of his scheme over $7 million in restitution.
Holdman operated a hedge fund called Greenwing Capital Management, LLC. As the owner and operator of the fund, the FBI alleges that he solicited and received millions of dollars in investment funds from the victim investors, many of whom were retirees, including former military veterans as well as survivors of Hurricane Katrina.
“Those individuals who prey on a vulnerable investing public, especially during such challenging economic times, will continue to be held fully accountable.” FBI Special Agent-in-Charge Michael J. Anderson said.
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.
“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. My appreciation goes to our federal and state law enforcement partners, both here in Louisiana and in Texas and Mississippi, for helping us uncover and address this scheme.” U.S. Attorney Green said.
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