Former Trader Charged With Stealing $16 Million From Friends, Blowing It On Luxuries
A former stock trader who prosecutors say was recorded confessing his crimes was arrested Thursdsay for stealing $16 million he promised to invest for friends and clients.
Detectives arrested David Holzer, 58, at his $2.5 million home in New City, N.Y., on charges of grand larceny and scheme to defraud.
Holzer pleaded not guilty at his arraignment in Manhattan's state Supreme Court. Justice Roger Hayes set bail at $2 million and scheduled his next court appearance for May 30. Holzer faces up to 25 years in prison if convicted.
Assistant District Attorney Christine Payne told the judge that Holzer had held no job since 2003 except for stealing funds he promised to invest. She said he used his personal relationships with the victims to get their money.
Payne also told the judge Holzer "confessed" to theft while talking to Barry Fingerhut, a former business partner and investor from whom the defendant is accused of stealing $13 million.
"He confessed -- and we have that confession on tape -- to Mr. Fingerhut that the partnership he supposedly invested in did not exist," Payne said.
Web sites describe Fingerhut as a principal and partner in two investment firms -- Wheatley Partners and GeoCapital LLC -- and a member of the Board of Overseers at the Stern School of Business at New York University. Calls to his offices seeking comment were not immediately returned.
Holzer's lawyer, Ronald Rubinstein, said the case was really a civil dispute about investments and should not be in criminal court. He said his "penniless" and "jobless" client was innocent and "intends to fight these charges."
Besides stealing millions from Fingerhut, Payne said, Holzer stole smaller amounts from others, including $1.6 million a young couple had received in a legal settlement. She said almost all the money was used to support a lavish lifestyle.
The prosecutor said Holzer bought expensive cars, including a Porsche, a Mercedes-Benz and an Aston Martin for which he paid $300,000.
Payne said the defendant also bought pricey jewelry and mink coats for his wife and had $750,000 in renovations done on his gated, Rockland County house.
The prosecutor said all of Holzer's assets were frozen. She said less than $1,500 in cash was recovered -- $375 in a bank account and about $1,000 in a brokerage account.
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First Posted: 05-23-08 08:09 AM | Updated: 05-31-08 05:12 AM