Ottumwa Courier
OTTUMWA —
Federal authorities have charged an Ottumwa man with running a fraud and money laundering scheme.
John Francis Holtsinger, 52, is accused of securities fraud, wire fraud and money laundering as part of an investment scheme, according to U.S. Attorney Nicholas Klinefeldt.
Holtsinger is accused of soliciting funds from Iowa residents for the purpose of investment. But, according to Klinefeldt's office, he used the money to pay living expenses, take trips and use online dating sites. Investigators believe he received at least $493,000 from investors beginning in December 2009. By February 2011 he used more than $335,000 for other purposes.
The indictment alleges Holtsinger told people they would be invested in high yield, no risk investments, including an "inheritance investment" that required a $20,000 deposit.
Some money did make it into investment accounts, but investigators say the amount was less than one-third of the money Holtsinger received.
The federal charges include 14 counts of wire fraud, two counts of securities fraud and one count each of working as an unregistered broker-dealer of securities and working as an unregistered investment advisor.
Each charge carries a potential 20 years in prison, except for the money laundering charge. It carries up to a decade behind bars. He could also face fines in excess of $5 million.
