PORTLAND, Ore. (KOIN) – Federal prosecutors have reached a plea deal with one of the two suspects linked to a $2.5 million investment scheme, according to court documents.
Theodore B. Holbrook, George J Arauz, Jr. are both under federal grand jury indictments for alleged white collar crimes.
Prosecutors allege that starting in 2008, and continuing through 2015, Holbrook, Arauz, and others, used their companies, Prisidio Capital LLC, Altius Capital Management, LLC, and Altius Capital Opportunities Fund, L.P., to solicit approximately 50 investors to invest approximately $2.5 million in an energy safe technology and in initial public offerings.
Court documents allege that rather than use the money as promised, defendants used investor money for their own personal expenses. Based on defendants’ conduct, investors lost approximately $2.5 million.
Both Holbrook and Arauz face charges of conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering.
The indictment was filed back in Nov. 2016.
Records show that Arauz is scheduled to change his plea in U.S. District Court on Tuesday.
Holbrook’s trial is scheduled for next month.