A southern Iowa man has been arrested and charged with bilking investors out of tens of thousands of dollars. Fifty-two-year-old John Francis Holtsinger of Ottumwa has been charged with securities fraud, wire fraud, and money laundering.
According to prosecutors, Holtsinger used money he got from investors to cover his personal expenses — taking trips and paying his living expenses. He even used client money to finance his on-line dating. Prosecutors say from the end of 2009 through February of this year Holtsinger diverted $335,000 of investors’ money to his own use.
Holtsinger allegedly told clients they were making low-risk, high-yield investments, and he required a deposit of at least $20,000 to start an account.
If found guilty of the long list of charges, it’s likely Holtsinger will be assessed millions in fines and sent to a federal prison.