A commercial real estate developer and mortgage broker was sentenced to 10 years in federal prison Monday for his role in a $50 million securities fraud scheme.
Bradley Holcom, 57, pleaded guilty in July to committing wire fraud in connection with the sale of about $50 million worth of promissory notes he sold to more than 150 investors located throughout the United States.
At the sentencing hearing, some investors who had lost millions of dollars told U.S. District Judge Cathy Bencivengo of the devastating impact of losing their life’s savings at retirement age with no ability to recover.
“My retirement funds for my golden years are gone,” said one victim. “He (the defendant) could have pointed a gun to my head or held a knife to my chest, and he couldn’t have hurt me more.”
According to court documents, Holcom solicited investors to provide funds for the development of raw land for commercial and residential purposes through an investment deal he operated called the Trust Deed Investment Program.
Holcom admitted that he falsely told investors who purchased notes through his program that they would receive a lien on a specific piece of property he was developing and that the lien would be in first position.
However, as Holcom further admitted, he never provided investors with a lien on the property he was purportedly developing and instead conveyed to investors a lesser interest that did not allow them to directly foreclose on the property to protect their investment.
— City News Service
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