A federal grand jury has indicted a Baker man on 18 counts of mail fraud for allegedly executing a $13 million investment fraud scheme, U.S. Attorney Donald J. Cazayoux Jr. announced Thursday.

James R. Holdman, 57, operated a hedge fund called Greenwing Capital Management LLC and solicited and received millions of dollars in investment funds from the victim investors, according to the indictment returned Wednesday.

Holdman operated from Baton Rouge and Zachary, the indictment says. He is accused of defrauding four investors in Mississippi, one in Florida and one in Baton Rouge.

The indictment alleges that from February 2008 to October 2008, Holdman falsely represented to the victims that their investments were earning positive rates of return when, in fact, he had lost more than 98 percent of their funds.

The indictment alleges Holdman’s false representations enabled him to conceal his failed investment plan and defraud the victims into keeping their remaining money with Greenwing Capital or investing more money in it, thereby enabling him to continue receiving money in the form of fees for his own personal use.

Holdman continued to put the victim investors’ money at risk in an attempt to recoup his losses, the indictment charges.

“Those individuals who prey on a vulnerable investing public, especially during such challenging economic times, will continue to be held fully accountable,” FBI Special Agent-in-Charge Michael J. Anderson said in a news release.

The joint investigation is being conducted by the FBI, the Louisiana Office of Financial Institutions, the Texas State Securities Board, and the Securities and Charities Division of the Mississippi Secretary of State’s Office.

The case is being prosecuted by Assistant U.S. Attorney Shubhra Shivpuri.