Did Guilt of Fraud Take Eric Holtz’ Life?

Did Guilt of Fraud Take Eric Holtz’ Life?

As an ethics speaker and consultant who has been proudly at my profession for well more than two decades, I am certainly aware of three categories of unethical individuals in organizations. There are those who are thinking about committing fraud; those who commit fraud with no remorse and the saddest of all, those who have committed fraud and then realize the massive weight of what they have done.

There is almost everything in my power (figuratively) as an ethical speaker and consultant I can do to “slap someone upside the head” to prevent them from acting on an impulse to commit fraud; there is little I can do to correct a personality who feels no remorse. But I am prone to grief for the fraudster who made a tragic mistake and then understands his or her shame.

Eric Holtz

Eric Holtz, the co-founder of the Seeman Holtz Family of Companies, insurance and financial consultants, has taken his life. He was 54.

The firm adamantly denied that the fact that the Seeman Holtz organization is facing a class action lawsuit for securities fraud had anything to do with the suicide. I, personally, would not bet against the strong probability.

According to prosecutors, Holtz’ business partner Marshal Seeman “defrauded elderly investors in South Florida using life insurance policy-backed notes.”

The lawsuits allege that the firm traded securities while selling those securities without licensing or any system of proper checks and balances. They were, in essence, allegedly acting in an irresponsible manner – and knew it.

A Seeman Holtz spokesperson stated: “We deny any allegations of wrongdoing and believe this case is without merit.”

The spokesperson further stated:

“There is no indication that Eric’s tragic passing is in any way related to this filing.”

Allegedly, the so-called investment notes were collateralized by life insurance policies issued to third parties. The policies would have paid off huge amounts to those third parties.

As an aside, I have known retirees who have gotten pulled into such policies, with huge premiums, confusing language and sold to individuals who were promised policies as “safe” investments that were very liquid. They often aren’t.

That issue aside, when investors tried to reclaim their funds, they were unable to do so. Apparently, Seeman Holtz was experiencing severe “financial problems.” They stalled investors.

The so-called safe investments, in total more than $100 million, had vanished. With it, were the life savings of more than 100 investors. Allegedly, the firm is unable to even provide information about the value of the amount invested. It suggests that the operation was not only fraudulent but always used the money for very different purposes than intended.

The Weight of Bad Ethics

Eric Holtz was hardly in a bubble. True, his partner, may have been the type of fraudster without conscience, but it is hard to imagine that Holtz was clueless that his investment empire was without money.

The firm was able to operate without oversite, and whether it was Seeman or Holtz who decided to play it loose and take that first step, the outcome was that after that first step, they were in ethical freefall. The fact that $100 million just “vanished” is indicator enough that both men made out very well from their unethical behavior.

Firms such as the Seeman Holtz Family of Companies are often able to prey on the frightened and ignorant; the widows of the wealthy and those afraid of the future without spouses or close friends.

One partner had a conscience and one did not. On some level Eric Holtz faced a future behind bars, a future of shame and having to plead his guilt in front of those from whom he stole. He chose the coward’s way, perhaps, but his choice started way before thoughts of suicide. It started with that first unethical act, whenever or wherever it was.

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