By Associated Press - Saturday, July 4, 2015

SIOUX FALLS, S.D. (AP) - A federal appeals court this week agreed with conviction and prison sentence of a Sioux Falls broker accused of scamming more than 100 investors for over $20 million.

The 8th Circuit Court of Appeals affirmed all 26 felony fraud convictions and the nine-year prison sentence of 67-year-old Randal Hansen, according to a statement released by acting U.S. Attorney Randy Seiler.

Hansen was the public face of RAHFCO Management Group as well as a handful of other agencies with similar names. Prosecutors and regulators said Hansen would promise huge returns to new investors and then use their deposits to pay off older investors.

In total, he was convicted on one count each of of conspiracy to commit wire and mail fraud, four counts of wire fraud and 21 counts of mail fraud. In addition to prison time, Hansen must also pay over $17.5 million in restitution to his victims.

Hansen appealed his convictions, arguing there was insufficient evidence presented of his knowledge that the funds were a fraud, according to Seiler. The Eighth Circuit Court of Appeals disagreed, citing Hansen’s role as a founder and general partner of one of the fraudulent funds.

“The appellate court’s decision, affirming more than two dozen felony convictions, brings to a close our successful prosecution of this complex, multi-million dollar fraud scheme,” Seiler said in a statement. “Hansen’s scheme left many victims without their life’s savings. His prison sentence and hefty restitution judgment should send a clear message about the high price of greed and deception.”

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