Ripping Off Katrina Victims Seemed Like A Good Idea To Hedge Fund Manager At The Time

Later, when the fraud charges came, less so.

Three years after Hurricane Katrina drowned New Orleans, a local man though he could help some of those affected by the storm, by taking from those who had a little bit of money left, and turning it into more money with a hedge fund called Greenwing Capital. Alas, Zachary Holdman wasn’t exactly the impresario he thought. This put him in a tough spot, but he figured enough time had passed since the tragedy and that people had gone right back to ignoring the plight of the Big Easy, so maybe he could just tell them that Greenwing was doing awesome, when in fact it had lost more than 98% of the money entrusted to it. In that, he was partially right: It took people another few years to figure it out, and now it will be a few years before Holdman is having breakfast at Brenman’s again.

A Louisiana hedge fund manager has been sentenced to sixty months’ imprisonment as a result of a mail fraud scheme in which he defrauded investors out of millions of dollars, the DOJ reports….

As the owner and operator of the fund, the FBI alleges that he solicited and received millions of dollars in investment funds from the victim investors, many of whom were retirees, including former military veterans as well as survivors of Hurricane Katrina.

Hedge Fund Manager Sentenced To 5 Years For Scamming Veterans, Retirees, Hurricane Katrina Victims [HedgeCo.Net]