Karen Hanover Pleads Guilty To Fraud!

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

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.

Watch this space!

Comments are invited!


17 thoughts on “Karen Hanover Pleads Guilty To Fraud!

    1. Duncan Wierman Post author

      Yes. A civil litigate would be initiated by a civil lawyer in a Federal Court now we have 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.

  1. Don L

    Is there any chance that they will replay for home study course, that is of no good to me, from Karen or Dc ?

    1. Duncan Wierman Post author

      Yes. A civil litigate would be initiated by a civil lawyer in a Federal Court now we have 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.

  2. Mercedes Pizzaro

    Unclear as to how much time she could spend in the slammer, now that she’s pleaded guilty. Min? Max? Had she gone to trial and been found guilty, she could have spent several decades in the pokey (which would have been just fine with me).

    1. Duncan Wierman Post author

      Sentencing will be soon enough. There are sentencing guidelines. Did you lose money? She has to pay restitution, and of course the civil case against her broker, and affiliates

  3. Terry Phillips

    Duncan, I lost $30,000 to Karen during her Fast Start campaign at the seminar in Texas with DC Fawcett.
    She claimed that we would be partners in commercial real estate and that she, through her many connections, would find us properties.
    She also said that after we determined our exit strategy, we would sell the properties and all recover our investment and share in the profits.

  4. Leanne

    What about money she stole from me in a separate case (posed as a landlord and took my $3000 deposit)? I won in small claims but never saw a dime. I’ll be really upset if she doesn’t get at least 5 years in jail.

  5. Chris

    She’s baaaaaaaaack!!!!

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      1. Minerva

        Duncan, she is not yet in the pokey. Sentencing is scheduled for Oct 10 @ 8:30 AM (Pacer Doc 52). Chris: How do you know for sure this doc comes from the Evil Witch? Can you post the URL please?

  6. Chris

    Upon further review……the solicitation did come from NAOCREP Headquarters in Woodland Hills, CA. Gotta pay the lawyers.

  7. Mercedes

    Here’s the latest. Karen changed attorney’s (again!) and her new attorney, Bob Bernstein just died, so she’ll have to get another one. In the meantime, she has just been arrested (around 10-6-14) and is in custody for a pretrial violation (don’t have details – does anyone know?). Her sentencing, which was supposed to have taken place on 10-10-14 has been moved to 2-20-15. Hopefully with this new violation, the judge will give her a longer sentence.

  8. Chris

    See above…She’s still selling the course. Lawyers are expensive! … and she can’t touch the offshore stash!

  9. Larisa Voloshin

    I really would appreciate all your new posts. I got this one through a friend. I did loose money with Karen and would like to be part of the class action


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