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

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR