Sioux Falls Man Convicted Of 26 Investment Fraud Felonies
A federal jury in Sioux Falls, South Dakota, has convicted Randal Kent Hansen, 65, of 26 investment fraud felonies, marking a major victory for law enforcement and a devastating blow to victims of a multi-million dollar scam.
Hansen, who collected over $20 million from more than 100 investors, promised them high returns on their investments in a hedge fund known as RAHFCO Funds, Limited Partnership and RAHFCO Growth Fund. Instead, he used their money to pay off older investors, operating a Ponzi-like scheme that left investors with losses exceeding $10 million.
US Attorney Brendan V. Johnson praised the verdict, saying, ‘Randy Hanson’s and his co-conspirators’ multi-million dollar scam cost many victims their life’s savings. We are pleased with the verdict and applaud the work of law enforcement which put together a very complicated case.’
Hansen faces a maximum penalty of 20 years in custody and/or a $250,000 fine, three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. He will also be required to pay restitution to his victims.
The case was investigated by the Federal Bureau of Investigation, with Assistant U.S. Attorney Jeffrey C. Clapper prosecuting the case. A presentence investigation has been ordered, with a sentencing date set for April 28, 2014. Hansen was released pending sentencing.
The conviction sends a strong message to those who would seek to defraud innocent investors, and serves as a reminder that law enforcement will aggressively pursue those who engage in such activities.
Hansen’s indictment was the result of a federal grand jury investigation that began in May 2013. He was found guilty on January 22, 2014, of conspiracy to commit wire and mail fraud, four counts of wire fraud, and 21 counts of mail fraud.
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Key Facts
- State: South Dakota
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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