Grimy Times has uncovered a shocking case of financial deceit in the Volunteer State. Terry Kretz, the former chief executive officer of Hanover Corporation, has been sentenced to 14 years in prison for orchestrating an $18 million Ponzi scheme.
According to court documents, between January 2004 and August 2006, Kretz, 61, of Gallatin, Tennessee, offered clients the opportunity to invest in Hanover through promissory notes bearing high interest rates. However, more than half of the money invested in Hanover went to repay earlier investors, to pay Hanover’s salaries and overhead, and to fund personal luxuries, including Kretz’s purchase of a $600,000 residential building lot, a $176,000 contribution to a church, and golf memberships.
Kretz’s co-conspirators, Daryl Bornstein, a Hanover salesman, and Robert Haley, Hanover’s chief financial officer, previously pleaded guilty to similar charges and are scheduled to be sentenced on August 25, 2014.
The case was investigated by the FBI, IRS-CI, the Tennessee Bureau of Investigation, and the Tennessee Department of Commerce and Insurance. The case is being prosecuted by Trial Attorney Justin Goodyear of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Scarlett S. Nokes of the Middle District of Tennessee.
Kretz’s sentencing marks the latest development in a case that has left a trail of financial devastation in its wake. The $18 million Ponzi scheme, which was orchestrated by Kretz, has left countless investors struggling to come to terms with the loss of their hard-earned money.
As Grimy Times continues to dig deeper into this case, it has become clear that Kretz’s actions were nothing short of egregious. His decision to use investors’ money to fund his own lavish lifestyle is a stark reminder of the dangers of unchecked greed and the importance of holding those responsible accountable for their actions.
Terry Kretz, former CEO of Hanover Corporation, was sentenced to 14 years in prison and ordered to pay $14,784,983.75 in restitution for orchestrating an $18 million Ponzi scheme. The case was investigated by the FBI, IRS-CI, the Tennessee Bureau of Investigation, and the Tennessee Department of Commerce and Insurance. Kretz, 61, of Gallatin, Tennessee, was also found guilty of orchestrating a scheme that defrauded investors between January 2004 and August 2006. He was ordered to serve 14 years in prison, followed by three years of supervised release.
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Key Facts
- State: Tennessee
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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