Santa Cruz Exec Risan Indicted for $3M Wire Fraud Scheme

SAN JOSE – The federal government has nailed Santa Cruz tech exec Hank Risan, 70, for a $3 million wire fraud scheme. According to the latest from the DOJ USAO in California, Risan is accused of misleading investors about his company’s ownership and future prospects.

Risan, who headed Media Rights Technologies, Inc. (MRT) and BlueBeat, Inc., allegedly duped investors with false claims about owning 2.5 million songs, imminent acquisition deals, and high-profile partnerships that never existed. He reportedly pocketed nearly $3.17 million from the scheme, using the funds to pay personal expenses.

The feds caught wind of Risan’s alleged shenanigans on July 31, 2025, when they filed an indictment detailing his crimes. This morning, Risan was brought before a federal court in San Jose, where he posted a $100,000 bond and awaits further legal action on October 8.

Despite the charges, Risan remains innocent until proven guilty. If convicted, he could face up to 20 years in prison and a fine of $250,000 per count under 18 U.S.C. § 1343. Assistant U.S. Attorneys Matthew Chang and Jeff Nedrow are leading the prosecution, with FBI agents Natachiana Burney and Susan Kreider providing support.

The investigation into Risan’s alleged fraud was sparked by the FBI, who have been working tirelessly to protect investors from such schemes.

Stay tuned as Grimy Times brings you more on this developing story.