Illinois Man Pleads Guilty to $8M Ponzi Scheme

Brooklyn, NY – In a shocking turn of events, Alan John Hanke, a 50-year-old Illinois man, has pleaded guilty to conspiracy to commit securities fraud in a multi-million dollar Ponzi scheme.

Hanke, the sole member of IOLO Capital (IOLO), admitted to misappropriating over $8 million from unsuspecting investors as part of the scheme. The victims were lured into investing with promises of high returns and insured investments, but nearly all of their money was lost.

As alleged in the indictment, Hanke used the stolen funds for personal expenses, including cruises, airfare, hotels, and a luxury car. He also paid co-conspirators and other investors with money he wrongfully obtained. To cover his tracks, Hanke filed a bankruptcy petition in June 2021, concealing the millions of dollars he received from his victims.

“Hanke admitted today that he conspired to defraud clients of millions of dollars of their investments, and then tried to cover up his crime by declaring bankruptcy,” stated Breon Peace, United States Attorney for the Eastern District of New York. “Today’s guilty plea reaffirms my Office’s efforts to root out white-collar crime where we find it and ensure integrity in the financial markets and the court system.”

Hanke faces up to five years in prison when sentenced. The case is being handled by the Office’s Business and Securities Fraud Section, with Assistant United States Attorneys Nicholas J. Moscow and Matthew Skurnik leading the prosecution.

The defendant, Alan John Hanke, has been charged with conspiracy to commit securities fraud, and his case is ongoing. The public is urged to remain vigilant and report any suspicious activity to the authorities.

Hanke’s guilty plea marks a significant victory for law enforcement and the victims of his scheme. The investigation was led by the FBI, with assistance from the USAO. The case serves as a reminder of the importance of holding white-collar criminals accountable for their actions.