Saturday, 28 May 2016
Last updated 6 hours ago
Jun 24 2011 | 9:25am ET
Portsmouth investment advisor Karl Hahn was arraigned in the U.S. District Court of New Hampshire on Monday on charges he “devised a scheme to defraud” a local man of $1.9 million.
Federal court records cited in the Portsmouth Seacoast say Hahn promised to invest the $1.9 million for a profit, but “there was no investment and instead Hahn simply intended to, and did, take the victim's money for his own personal use."
According to federal records, the man made four separate loans to Hahn, for $300,000, $1.6 million, $100,000 and $35,000. When his “investments” failed to make a profit, Hahn is alleged to have made “numerous false representations to the victim.”
The Seacoast reports that Hahn was released following his arraignment on condition that he forfeit his passport, surrender firearms, report regularly to a parole officer, not open any credit and restrict his travel to New Hampshire, Connecticut and Florida.
According to court records, Hahn is represented by public defender Cathy Green of Manchester and will go to trial on August 16.
It's been a hard landing for the once high-flying Hahn: his 7,900-square-foot Portsmouth waterfront mansion has been foreclosed he’s lost his three-bedroom yacht, the Kafalka. He's barred from practicing in New Hampshire and is being pursued by the IRS for unpaid taxes.