Karen Hanover Self Proclaimed Guru of Commercial Investing Pleads Guilty to Fraud

Karen Hanover Convicted Felon

 

Karen Hanover of The Commercial Gold Rush Investing and Coaching program with DC Fawcett has plead guilty of defrauding investors.

>>>> Original Blog Post Of My Outing of Karen Hanover that started the process

Karen Hanover and her attorney John Barton signed an agreement yesterday : That she, in or around 2010 or 2011, hatched a scheme to defraud investors she found through her seminars on getting rich through commercial real estate.

The plea deal says she pitched her “Fast Track” program that investors could enter for $19,000 (later kicked up to $29,000) and made a series of false statements to rope people in, including guaranteeing returns of more than 100 percent and full refunds if they did not have investment property within a year.

At the time she made those statements, she knew they were false, reads the plea deal, which adds Hanover also knew she gave false promises to be an equity partner in real estate transactions without having any capital of her own to invest.

Hanover admits that on or about March 3, 2010, a victim wired a $20,000 payment for the “Fast Track” program from his bank account in Vineland, New Jersey, to Hanover’s “commercial education account” at a Wells Fargo branch in Long Beach.

“As a result of defendant’s fraudulent scheme, about 48 victims lost $1,437,091.36,” states the plea agreement.

In exchange for her guilty plea, the government’s prosecution team, now headed by Assistant U.S. Attorney Joseph McNally, agrees not to fight Hanover receiving the low end of sentencing guidelines, even though guilt made her subject to the high end terms that could have had her locked up for several years.

In exchange for the plea deal, the prosecution will not challenge a sentence of at least 20 months in custody and restitution of at least $1.5 million.

The plea deal indicates the judge can deduct her previous jail time from whatever term she ultimately gets.

Please find the Plea Agreement from Pacer.gov >>>>>> karen hanover plea agreement

Sentencing to come shortly.

This now opens the door for a class action lawsuit to go after DC Fawcett and  affiliates as they took monies in perpetuating the fraud.  DC still has over 1 million in his bank account he has held back. Other affiliates such as Kent Clothier made over 100K promoting her to his list and endorsing her coaching program.

A civil litigate should be initiated by a civil lawyer in a Federal Court now their is a list of plaintiffs for the class. Every attendee of any of her education classes has a claim against Karen, her broker if she was licensed and hung her license somewhere, every internet guru or mastermind member that supported her events. It has great possibilities.  Make sure you get on the list!

Watch this space!

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