United States Attorney Brendan V. Johnson announced that Randal Kent Hansen, age 65, of Sioux Falls, South Dakota, 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, as a result of a federal jury trial in Sioux Falls, South Dakota.
“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. We hope the victims of this fraud find some vindication in knowing that the conspirators have been brought to justice,” said U.S. Attorney Brendan Johnson.
The convictions each carry a maximum penalty of twenty 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. Hansen will also be required to pay restitution to his victims.
Hansen was indicted by a federal grand jury on May 8, 2013 for conspiracy to commit wire fraud and mail fraud, wire fraud and mail fraud.
The case involved the investigation of a hedge fund known as RAHFCO Funds, Limited Partnership and RAHFCO Growth Fund. As president of the fund, Randy Hansen collected money from over a hundred investors that totaled over $20 million dollars. Investors were told that only a small portion of the money was supposed to be used to make trades on the futures market for the S&P 500, that the rest was securely invested in government securities, and that they could withdraw funds at will. The fund operated from 2007 until April 2011 when one of Hansen’s co-conspirators turned himself into authorities. The investigation revealed that the fund was operating in a Ponzi-like fashion with new investor money being used to pay off older investors seeking to withdraw funds. Ultimately, investor losses have exceeded $10 million.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
A presentence investigation was ordered and a sentencing date has been set for April 28, 2014. The defendant was released pending sentencing.