Sioux Falls broker convicted of 26 fraud felonies
SIOUX FALLS (AP) — Federal jurors have convicted a Sioux Falls broker in a scam that the prosecutor says netted over $20 million from more than 100 investors.
U.S. Attorney Brendan Johnson says 65-year-old Randal Hansen was found guilty of 26 investment fraud felonies: conspiracy to commit wire and mail fraud, four counts of wire fraud and 21 counts of mail fraud.
The maximum punishment for each count is 20 years in prison and a $250,000 fine.
Hansen was the public face of RAHFCO Management Group as well as a handful of other agencies with similar names.
Prosecutors and regulators say Hansen would promise huge returns to new investors and then use their deposits to pay off older investors.
Former investors and the Securities and Exchange commission also sued Hansen.