New York (HedgeCo.Net) – A hedge fund manager has pleaded guilty to multiple counts of mail fraud based on his executing a $13 million investment fraud scheme that included victims in Louisiana, Mississippi, Texas and Florida, The Times-Picayune reports. He is scheduled for trial later this week.

Zachary 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.

Holdman faces a maximum term of imprisonment of forty years and millions in fines and restitution to his victims.

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.

Alex Akesson
Editor for HedgeCo.net
alex@hedgeco.net
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