Former Smith County Insurance Agent Guilty in $5.4 Million Fraud Scheme
TYLER, TX—A 64-year-old former insurance agent has pleaded guilty to wire fraud and money laundering in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Robert B. Hahn, of Tyler, pleaded guilty to an information charging him with wire fraud and money laundering on Nov. 19, 2015 before U.S. Magistrate Judge John D. Love.
According to information presented in court, from January 2007 to February 2015, Hahn devised and executed a scheme in which he claimed to represent a group of doctors, in Tyler, Texas, who were raising capital for debt retirement, construction of, or improvements to, health care facilities, and medical equipment purchases. Hahn led approximately 100 potential investors to believe this group of doctors would pay an annual interest rate of 20% on their loans or investments. Hahn then collected funds from these individuals and deposited them into his insurance business or personal checking accounts. Hahn would periodically make “interest” payments, in cash, to said individuals, representing a 20% return on said fictitious loans or investments, utilizing funds he had derived from earlier investors. Upon request, Hahn would return principle loan or investment funds to said individuals in the form of a check drawn on his insurance or personal checking accounts, using funds he had received from other investors. Hahn admitted that in truth and in fact, there never was a group of doctors raising capital for debt retirement, construction of, or improvements to, health care facilities, and medical equipment purchases. Hahn admitted he simply made up this story to obtain and maintain funds for his personal use.
As a result of the scheme, Hahn collected approximately $5,479,600.00 from individual investors. In furtherance of the scheme, during the relevant time period, Hahn returned or distributed approximately $4,072,470.00, in proceeds from the fraud scheme to some of the individuals in the form of returned “principle” and “interest” or “earnings.”
Hahn faces up to 20 years in federal prison at sentencing. A sentencing date has not been set.
This case was investigated by the Federal Bureau of Investigation, Tyler Office, the Internal Revenue Service, Criminal Investigations Division, the Texas State Securities Board, and prosecuted by Assistant U.S. Attorney Jim Noble.