Feds Charge Portsmouth Financial Advisor with $1.9M Fraud

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.


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.