On February 12, 2015, James Holdman of Baker was sentenced to 5 years in federal prison and ordered to pay $7.9 million in restitution in connection with a securities fraud scheme. Based on a joint investigation conducted by the Securities Division of the Office of Financial Institutions, the Federal Bureau of Investigation, the Texas State Securities Board, and the Securities Division of the Mississippi Secretary of State, Holdman pled guilty on July 10, 2014 to two counts of mail fraud. Holdman operated a company called Greenwing Capital Management, and managed three investment hedge funds – Greenwing Fund, Bluewing Fund, and Silverwing Fund. Pursuant to his guilty plea, Holdman admitted to mailing account statements to investors showing positive investment returns, when he had in fact lost 98 percent of their funds. By sending the false account statements, Holdman was able to conceal the losses in the hedge funds and defraud victims into keeping their money in the funds, thus allowing Holdman to continue receiving fees for his personal benefit.
James Holdman Pleads Guilty to Mail Fraud
James Holdman of Baker pled guilty on July 10, 2014 to two counts of mail fraud in connection with a securities fraud scheme. Based on a joint investigation conducted by the Securities Division of the Office of Financial Institutions, the Federal Bureau of Investigation, the Texas State Securities Board, and the Securities Division of the Mississippi Secretary of State, Holdman was indicted on 18 counts of mail fraud by a federal grand jury in Baton Rouge on February 27, 2013. Holdman operated a company called Greenwing Capital Management, and managed three investment hedge funds – Greenwing Fund, Bluewing Fund, and Silverwing Fund. Pursuant to his guilty plea, Holdman admitted to mailing account statements to investors showing positive investment returns, when he had in fact lost 98 percent of their funds. By sending the false account statements, Holdman was able to conceal the losses in the hedge funds and defraud victims into keeping their money in the funds, thus allowing Holdman to continue receiving fees for his personal benefit Holdman faces a maximum sentence of 40 years in federal prison.