Mark Holt Sentenced for Defrauding Clients in a $4 million Ponzi Scheme

Cleveland Ponzi scheme attorneyMark Holt, an investment professional in North Oaks, MN, was charged with allegedly partaking in a fraudulent-Ponzi scheme that resulted in an estimated $4 million loss suffered by his mostly retired clients, according to his federal sentencing. He has been condemned to ten years in prison as well as paying $2.9 million in restitution.

The Peiffer Wolf law firm’s securities practice attorneys Jason Kane and Joe Peiffer are investigating the matter on behalf of victimized investors.

Holt Allegedly Created Sham Companies To Scheme Clients

Holt worked for Harbour Investments, Inc. from February of 2007 to November of 2013, as per the Broker Check CRD Report. During this time he allegedly used the company name to create sham companies and then used those accounts to deposit his clients’ funds in. These various companies included Harbor Financial Group, Harbor Group, Inc., The Harbor Retirement Group, Harbor Trust Services, The Harbor Group, LLC, and the Harbor Education Institute, as reported by the Commerce Department.

Holt Accused of Defrauding Elderly Clients

Holt’s clients included many elderly senior citizens which he allegedly misled and caused them to partake in inappropriate investments. He also had clients sign partially completed or blank document, sold improper products to them, and failed to deliver client contracts, according to the Broker Check CRD Report. Holt was accused of providing his clients with monthly checks as well as “portfolio fact sheets”, or fabricated earnings statements, to keep them ignorant of his dealings. His clients allege negligence, breach of fiduciary duty, civil theft, conversion, unjust enrichment, money had and received, negligent misrepresentation, and violation of state and federal statutes, as specified in the Broker Check CRD Report.

Holt proceeded to take his clients’ funds and use them for personal expenditures by Twin Cities Business. These expenditures included traveling around the country, a yacht club membership, luxurious restaurants, a criminal defense lawyer, exotic dancers, and horse boarding, as accused by the Commerce Department.

Holt Admits to Committing Wire Fraud

The formal charge brought against Holt was felony wire fraud for defrauding his investment clients to which he pled guilty to, as stated by the Broker Check CRD Report. He has been ordered to pay a $300,000 civil penalty and to discontinue his involvement in securities-related activities by the Commerce Department. This is in addition to his 10 years in prison and the payment of $2.9 million in restitution as a result of his criminal sentence.

Investor Right Attorneys Investigating Holt’s Alleged Misconduct

The Peiffer Wolf attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting investors with the recovery of any losses they may have suffered in connection with Mark Holt. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Wolf, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 585-310-5140.

Broker: Mark Holt

Status: INVESTIGATED by Peiffer Wolf.

For brokercheck report and additional info click here!

Peiffer Wolf (1296 Posts)

In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.