UPDATE: After several years of litigation the Robert Holloway case finally went to a jury yesterday after a week long trial in before U.S. District Court Judge Robert Shelby. As reported by the Salt Lake Tribune, the jury found him guilty on on five charges, including four counts of wire fraud and one count of filing a false tax return. Judge Shelby set Holloway’s sentencing hearing for Oct. 20 and ordered Holloway jailed until that hearing. Houston attorney Robert Andres, who funneled millions of dollars to Holloway’s company U.S. Ventures, plead guilty last year to five charges. Andres testified against Holloway at the trial.
Last week the Deseret News reported that Robert Holloway was arrested in San Diego for his alleged role in a $25 million investment fraud scheme. He was charged with four counts of wire fraud and one count of making and subscribing a false income tax return, according to an indictment unsealed Thursday in the District of Utah. This is not a new case, US Ventures was sued by the CFTC and was placed into receivership in January of this year. The receiver appointed by the Federal Court is Wayne Klein, and his receivership website can be found here. The only new development here was Mr. Holloway’s arrest, and it’s unclear to me why it took so long. According to the Deseret News article, Holloway falsely claimed that US Ventures used proprietary trading software that was consistently profitable; that it had more than $32 million under management and generated returns of 0.8 percent per trading day; and that it would retain a 30 percent share of investors’ profits as a management fee. The indictment states that Holloway raised more than $25 million from investors and generated and distributed reports to investors containing false daily returns on their investments. The Salt Lake Tribune also wrote a story on this arrest. Holloway is scheduled to appear in court in Salt Lake City on December 16.