(CN) – An Iowa man was indicted and arrested Thursday on charges of running a $493,000 investment scheme, the U.S. Attorney’s Office said.
John Francis Holstinger, 52, of Ottumwa, Iowa, was charged with two counts of securities fraud; 14 counts of wire fraud; and one count each of money laundering, selling unregistered securities, working as an unregistered broker-dealer of securities, and working as an unregistered investment advisor.
Holtsinger raised more than $493,000 from investors between December 2009 and February 2011, but he spent at least $335,000 of it on himself instead of making the investments he promised, according to the indictment.
“He represented that he would use those funds to make investments, but actually used most of the money to pay living expenses, take trips, access web-based ‘dating’ sites, and for other personal reasons,” prosecutors said in a statement.
Each charge against Holtsinger carries a 20-year prison sentence, though the money-laundering charge carries 10. Holsinger also faces more than $5 million in fines.