Bernard Ross Hansen, Mail and Wire Fraud, Washington 2022

A pair who went on the run after being found guilty of fraud at a now-defunct precious metals firm has been sentenced to prison.

Seattle – Bernard Ross Hansen, 61, aka Ross B. Hansen, and his co-defendant Diane Renee Erdmann, 49, were sentenced in U.S. District Court in Seattle to 11 and 5 years in prison, respectively, for 14 federal felonies resulting from a Ponzi-like scheme that defrauded customers of millions of dollars.

The scheme, which operated through Northwest Territorial Mint, a now-bankrupt company dealing in precious metals, involved lying about shipping times for bullion, using customer money to expand the business to other states, and paying personal expenses.

The company lacked enough assets to fulfill customer orders, and new customer money was used to pay off older customers in a Ponzi-like scheme. Over 2,500 customers paid for orders or made bullion sales or exchanges that were either never fulfilled or never refunded, resulting in a total loss of more than $25 million.

The evidence at trial also showed that Hansen and Erdmann defrauded customers who paid to safely and securely store bullion in NWTM vaults. The missing bullion was worth more than $4.9 million.

U.S. Attorney Nick Brown said, “Mr. Hansen and Ms. Erdman defrauded more than 3,000 people of some $30 million – money that represents the victims’ plans and dreams: retirement, college funds, and inheritances.”

The sentencing hearing was held after Hansen and Erdmann failed to show up for their late April court date and attempted to flee.

The scheme was discovered in 2016, when Northwest Territorial Mint declared bankruptcy. The company had offices in Federal Way and Auburn, Washington.

Mandatory Facts: Defendant Bernard Ross Hansen, also known as Ross B. Hansen, was sentenced to 11 years in prison for mail and wire fraud. The crimes were committed through Northwest Territorial Mint, a now-defunct precious metals company in Seattle, Washington. The incident occurred in 2021, with $30 million being defrauded from over 3,000 customers. The sentencing took place on April 27, 2022.

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