Former investment banker gets 18 months in prison for fraud
CONCORD, N.H. (AP) — A former New Hampshire investment banker has been sentenced to 18 months in federal prison for defrauding a client of about $2 million.
Court records say 44-year-old Karl Edward Hahn, formerly of New Castle, New Hampshire, invited a client to join him in what he referred to as an “off the books investment” in 2009.
He said he and the client would each contribute $2 million, which Hahn would then loan to three people who would repay the money within 90 days with interest, substantially above market rates.
Hahn said he simply used the client’s money to pay personal expenses.
In 2011, the New Hampshire Bureau of Securities Regulation barred Hahn from being licensed to sell securities.
Hahn pleaded guilty in August. He’s scheduled to start his sentence Dec. 4.