Investment manager accused in Utah Ponzi scheme

AP News
Posted: Dec 09, 2011 4:15 PM
Investment manager accused in Utah Ponzi scheme

A San Diego investment manager has been arrested on charges of spending millions of dollars of his clients' money on personal expenses.

Federal prosecutors say 54-year-old Robert L. Holloway operated in Utah as U.S. Ventures LC for two years until 2007.

He was indicted Thursday in what authorities call a $25 million Ponzi scheme.

Regulators at the U.S. Commodity Futures Trading Commission say they are freezing Holloway's assets.

Holloway's indictment says he promised investors consistent profits of nearly 1 percent a day, but actually lost more than $10 million in trading and spent $4.2 million buying an aerospace consulting business.

Holloway was arrested Thursday in San Diego and is set to appear in federal court in Salt Lake City Dec. 16. It wasn't immediately clear if he had an attorney.