IF businessman David Hansen sentenced for fraud
POCATELLO, Idaho (KIFI/KIDK) - A former Idaho Falls businessman was sentenced to five years in prison for wire fraud in U.S. District Court in Pocatello.
David Hansen, 49, was Chief Executive Officer and a 90% partner in Yellowstone Partners, LLC., an investment management firm headquartered in Idaho Falls.
U.S. District Judge David Nye also imposed a three-year term of supervised release after Hansen’s release from prison. The Court will determine how much restitution Hansen will pay in a hearing scheduled June 26.
According to court records, clients entrusted money to Yellowstone Partners to invest and manage. From 2008 to 2016, Hansen devised a scheme to defraud clients by overbilling their investment accounts. Through the scheme, the court records indicate Hansen obtained client funds from a third-party custodian and used them to enrich himself and fund Yellowstone Partners’ operations.
The court said Hansen personally submitted 51 fraudulent overbilling requests, which resulted in a loss of $2,675,856.
“Mr. Hansen was greedy; defrauding his clients so that he could fund a lavish lifestyle,” said Special Agent in Charge Paul Haertel of the FBI’s Salt Lake City Field Office. IRS-Criminal Investigation agent in Charge Andy Tsui added, ““David Hansen will now reap the rewards of his fraudulent activities by going to prison.”
As part of a plea agreement, Hansen agreed to pay full restitution to the victims. The amount will be determined by the court on June 26. Hansen also agreed to a forfeiture judgment in the amount of restitution ordered by the court. And, Hansen agreed to cooperate with the Internal Revenue Service civil tax examination and assessment and to pay any taxes and accrued interest for his 2012 and 2013 joint income tax returns.
U.S. Attorney for Idaho Bart Davis commended the FBI and IRS for their thorough investigation.
“This significant sentence sends a strong message to any investment manager who might consider taking advantage of the trust their clients place in them,” Davis said. “When an investment manager like Mr. Hansen steals from his clients, this office and our law enforcement partners will leave no stone unturned until justice is done and victims are repaid.”
