Canby, Oregon Man, Bradley Holcom, Indicted in San Diego for Alleged Role in $50M Securities Fraud Scheme
An Oregon man has been indicted in San Diego for allegedly orchestrating a $50 million securities fraud scheme that authorities say defrauded 150 investors across the country.
According to the indictment, Bradley Holcom, of Canby, Oregon, made false representations to investors in the sale of $50 million worth of promissory notes tied to an investment program called the Trust Deed Investment Program.
Holcom allegedly told investors their funds would be used for real estate development projects and that their funds would be secured by liens on specific properties. Holcom also allegedly promised investors the liens would be in first position, which would allow them to directly foreclose on the property in the event of non-repayment.
Officials allege that Holcom’s statements were false. According to the indictment, Holcom never provided first position liens to the investors. Instead, he allegedly conveyed to investors a lesser interest that did not give them the right to foreclose on the property. He also allegedly sold the secured properties without informing investors of his actions.
Authorities arrested Holcom in California on Tuesday. The indictment, filed on May 9 and unsealed last week, charges Holcom with eight counts of mail fraud, four counts of wire fraud, and one count of securities fraud. If convicted, he could face up to 20 years in prison for each count of mail and wire fraud and up to 25 years in prison for securities fraud. To learn more about the Bradly Holcom case, click here.