Paul R. Hansmeier and John L. Steele are set to be sentenced June 4, 2019, in Minneapolis, Minnesota, for running a brazen, multi-million dollar fraud operation disguised as copyright enforcement. The pair, operating through a web of shell companies and fake law firms, weaponized the federal court system to extort payments from unsuspecting internet users across the country.
Convicted of orchestrating a nationwide scam, Hansmeier and Steele targeted individuals with threatening letters and lawsuits alleging illegal downloading of pornographic films. These claims were entirely fabricated. The defendants never owned the copyrights they claimed to enforce and relied on intimidation tactics to force quick settlements—often hundreds or thousands of dollars—paid directly to entities like AF Holdings, Ingenuity 13, and Prenda Law.
The scheme, prosecuted as United States v. Hansmeier, et al., Criminal No. 16-cr-00334 (JNE), exposed a sophisticated fraud network that manipulated the legal system for profit. Victims received court-appearing documents demanding payment to avoid public exposure or criminal charges—all part of a calculated effort to extract cash under false pretenses.
At the upcoming hearing before Judge Joan N. Ericksen in U.S. District Court, the court may order restitution for victims who paid into the scheme. While not guaranteed, this offers a rare chance for financial recourse. Anyone who sent money to Steele Hansmeier Law, Alpha Law, Anti-Piracy Group, Guava LLC, Livewire, LW Systems, or related fronts is urged to act immediately.
To file a claim, visit https://hansmeier.usaocrimevictims.org/. All victim information submitted will remain confidential and will not be made public. The site provides official guidance from the U.S. Attorney’s Office, District of Minnesota, on documentation and deadlines.
The case marks one of the most audacious legal extortion schemes in recent federal memory. With victims scattered across the country and millions siphoned through digital strong-arming, the sentencing could set precedent for how courts handle fraudulent litigation abuse. For now, the focus turns to accountability—and getting money back into the pockets of those who were wronged.
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Key Facts
- State: Minnesota
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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