Manhattan District Attorney Robert M. Morgenthau announced today the indictment of a New York man who stole over $16 million from personal friends.

The defendant, DAVID HOLZER, a former stock trader, will be arraigned today in New York State Supreme Court, Part 1.

The indictment charges that between 2002 and 2008, HOLZER stole $16 million from his friends — two married couples and two other businessmen.   HOLZER knew his victims initially through business contacts and ultimately developed long-term friendships with them.  Using his personal relationships with the victims, he inveigled them to invest money with him.  Even though some of the investment vehicles were ostensibly legitimate, HOLZER never actually invested any money in them for his friends.  In other cases, the investments were just totally bogus.    

The investigation leading to today’s indictment revealed that HOLZER told his victims that they were entering into joint investment ventures with him.  In some cases HOLZER claimed already to be invested in the venture and, in other cases, he told his victims that he wanted them to partner with him for investments in real estate, privately- held businesses, and publicly-traded companies.  HOLZER convinced his victims that he was investing at least as much money as they were in each venture.  HOLZER’s victims wired money or wrote checks directly to him, but instead of investing the money as promised, he used the money to pay his personal expenses. 

One of his victims, a wealthy financial adviser, entrusted the defendant with $12 million from 2002 to 2006, to invest in a series of upstate New York real estate ventures.  In fact, the defendant never invested any of this money and used the funds for his own purposes.  In February and March 2005, this victim gave a loan of $1 million to the defendant to cover an alleged margin call.  The defendant stole these funds as well.

In another instance, in late 2005 and early 2006, HOLZER took money from his Westchester-based interior designer and wife.  The young couple, novices at investing, had asked for HOLZER’S advice after they received a financial settlement.  HOLZER told his victims that he would invest their money, and they wired him $1.6 million, the bulk of their settlement.  Instead of investing the money for their benefit, HOLZER used the money to pay his personal expenses, and invested the rest of the money in his own name. 

In 2006-07, HOLZER stole $1.7 million from another financial adviser and his wife who had both been close personal friends with HOLZER for many years.  Like the other victims, these victims trusted HOLZER with their money.  HOLZER lied to them about investments he wanted them to invest in, including investing in IT companies and Florida real estate.  In reality, he used their money to pay for his homes and expensive shopping bills.

Finally, in March 2008, HOLZER approached another friend who was a businessman and told him that he wanted to help him make some money.  Holzer stole over $150,000 from him.

The investigation began after one of the victims contacted the Manhattan District Attorney’s Office.

HOLZER has been indicted for Grand Larceny in the First Degree, Grand Larceny in the Second Degree, and Scheme to Defraud in the First Degree.  Grand Larceny in the First Degree is a class B felony punishable by up to 25 years in prison.  Grand Larceny in the Second Degree is a class C felony punishable by up to 15 years in prison.  Scheme to Defraud in the First Degree is a class E felony punishable by up to 4 years in prison.

In addition, The District Attorney’s Office Asset Forfeiture Unit is suing to recover the proceeds of the defendant’s crimes, as well as to find assets for restitution.
 
Assistant District Attorney Christine Payne presented the case to the grand jury under the supervision of Frauds Bureau Chief Michael Kitsis, and Deputy Chiefs Jeannette Molina, and Micki Shulman, and was assisted by Trial Preparation Assistants Kristen McKeon and Alexandra Shookhoff.  Senior Investigator Shannon Rowe conducted the investigation under the supervision of Supervising Investigator Jose Flores and Investigation Bureau Chief Joseph Pennisi and Deputy Chief Terence Mulderrig.  Senior Financial Investigator Nicholas Cangro led the financial aspects of the investigation under the supervision of Frank Puma, Chief of the Financial Crimes Bureau.  Assistant District Attorney Madeleine Guilmain is in charge of the Civil Forfeiture proceeding under the supervision of Asset Forfeiture Unit Chief Tara Miner.

Defendant Information:

DAVID HOLZER, 11/14/49; 10 Sky Drive, New City, NY 
50 E. 78 Street, Apt. 10A, New York, NY 

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