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Former CEO of Northwest Territorial Mint Convicted of Mail and Wire Fraud
Seattle – Bernard Ross Hansen, 60, aka Ross B. Hansen, the former President and CEO of Northwest Territorial Mint, a now-bankrupt company dealing in precious metals, was convicted today in U.S. District Court in Seattle of 14 federal felonies resulting from a Ponzi-like scheme that defrauded customers of millions of dollars.
The jury deliberated about two days before convicting Hansen of multiple counts of wire and mail fraud. His accomplice, Vault Manager Diane Renee Erdmann, 48, was also convicted of 13 counts of wire fraud and mail fraud following the trial. Sentencing for both Hansen and Erdmann is scheduled for October 29, 2021.
Northwest Territorial Mint (NWTM) operated both a custom business that involved the manufacturing of medallions and other awards, and a bullion business that involved the selling, buying, exchanging, storing, and leasing of gold, silver, and other precious metals. The company had offices in Federal Way and Auburn, Washington, but declared bankruptcy on April 1, 2016.
According to records in the case and testimony at trial, Hansen and Erdmann defrauded NWTM customers in a variety of ways. The evidence at trial showed that Hansen and Erdmann lied about shipping times for bullion, used customer money to expand the business to other states, and used customer money to pay their own personal expenses. In this way the company lacked enough assets to fulfill customer orders and used new customer money to pay off older customers in a Ponzi-like scheme.
In total, over 2500 customers paid for orders, or made bullion sales or exchanges, that were either never fulfilled or never refunded. The total loss to these customers was more than $25,000,000. In addition to the bullion customer fraud, the evidence at trial demonstrated that Hansen and Erdmann defrauded customers who paid NWTM to safely and securely store bullion in the NWTM vaults.
Each of the counts of conviction are punishable by up to 20 years in prison. U.S. District Judge Richard A. Jones will determine the appropriate sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The case was investigated by the FBI, and the case was prosecuted by Assistant United States Attorneys Brian Werner and Benjamin Diggs.
Key Facts
- State: Washington
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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