Karen Hanover sentenced to nearly 3 years in prison for commercial real estate fraud scheme


Karen Hanover was sentenced to nearly three years in prison for defrauding investors of $1.4 million in a commercial real estate scheme, the United States Attorney’s Office said Friday.

Karen Hanover, 48, convinced victims to invest $15,000 to $30,000 in her investing schemes, guaranteeing a 100 percent return or a 100 percent refund if investors didn’t have a commercial property within a year, prosecutors said. The claims were false. Hanover pitched the scheme to investors at seminars in Southern California, Las Vegas and Dallas. She ran the scheme through two Long Beach companies, Commercial Investment Education LLC and Kharmic Life Strategies Inc.

When the victims demanded their money back, Hanover bullied and intimidated them, threatening them with jail time if they reported her, according to court documents.

This is not Hanover’s first time in prison. In 2011, she was found guilty of impersonating an FBI agent by using a website to alter her voice and phone number. As the agent, she threatened clients who were complaining about her real estate scheme with imprisonment. For that crime, she got six months in prison and a $5,000 fine.

Hanover pleaded guilty to one count of mail fraud. A hearing to determine how much restitution she must pay approximately 45 victims is scheduled for May 8.

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7 thoughts on “Karen Hanover sentenced to nearly 3 years in prison for commercial real estate fraud scheme

  1. Al

    Wow…. that’s interesting. When will it be DC Fawcett turn to face charges as well. He was apart of the scheme too. Looking forward to seeing DC going to jail and he doesn’t it’s not fair to Karen Hanover to take 100% of the blame.

    AR

    Reply
  2. SD

    Hey Duncan, Sergio here. Dont know if you remember me but we met a few years back when Karen first offered her commercial program. Sorry to say, even though I never gave her a dime beyond the program, you were dead on right about her. Keep up the good work. I might be able to add a few people to your list.
    Also, interested if you have ever looked at REACT, now called CATS by Jon and Steph Ianotti. They are direct students of LeGrand. Take a gander.

    Take Care
    Sergio DeCesare

    Reply
      1. SD

        RE/ACT is an extension of the Legrand ACT program that, supposedly was “coined” by the Ianottis and LeGrand ” commandeered” it. Assignment of Contract Terms. You, get a property owner to accept “terms” and you resell the property for stepped up terms and capture the spread. Re?act same thing, but with over leveraged properties to people who cant qualify. I havent taken the new CATS program but Im told its not that different. I, initially didnt care for it because one of the tactics was getting the “seller” to sign a memorandum of interest that was filed at Clerks office, in essence clouding title. When the “deal” didnt go through the memorandum wasnt removed and if the prop sold later, BAM! Gotta pay to have the “cloud” removed. Myself, as a Lic RE Broker here in FL, am forbidden from clouding title in that fashion. Besides I think its bad business.
        I brought this up to them very agressively that I would not condone this and it was not ethical to leave that “cloud” on title if business had concluded unsuccessfully. From what I understand they no longer teach this methodology.
        I was just wondering if you ever come across their system or heard of it. CATS is what they just launched.

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