Category Archives: Karen Hanover Exposed

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.


Karen Hanover Files A Pleading For Home Confinement Instead of Prison

Please see the attached five page PDF  file in which she says she is sorry, and does not know why she did what she did.  She accepts responsibility and would like to refund everyone. She also uses her parents illness as a reason why she should not go to prison.

Download by clicking the link below

Karen Hanover Sentence Pleading For Home Confinement

What do you think?

Karen Hanover Ordered Held by Federal Judge for Alleged Violation of Release in Fraud Case

Re: United States v. Defendant(s) KAREN HANOVER
Case Number 2012R02794 and Court Docket Number 12-CR-00282

Dear <redacted>:

The enclosed information is provided by the United States Department of Justice Victim Notification System (VNS). As a victim witness professional with the United States Attorney’s Office, my role is to assist you with information and services during the prosecution of this case. I am contacting you because you were identified by law enforcement as a victim during the investigation of the above criminal case.

During the prosecution of a federal criminal case a defendant may be ordered by the Court to remain confined. The United States Marshal Service manages defendants who are ordered by the Court to remain in custody. Custody status of a defendant is subject to change during the course of the criminal proceedings. To receive the timeliest update to your case, please provide and verify your email address, as instructed below.

As of October 6, 2014, KAREN HANOVER is in custody.

The sentencing hearing for defendant(s), KAREN HANOVER, has been set for February 20, 2015, 09:30 AM at Hearing Location for Southern Division Office 8, Ronald Reagan Federal Building US Courthouse, 411 West Fourth Street, Santa Ana, CA 92701 before Judge Josephine Staton.

Find out wht below:

Karen Hanover, Convicted of Fraud, No Longer Part of Crowd-funding Microchips for Lost Pets




DC Fawcett Partners with Zack Childress To Offer A Line of Credit ??

Have you been getting inundated lately with email from Zack Childress or another name being used ” Daryl ” ?

Take heed, Zack  has partnered up with DC Fawcett of the Karen Hanover Commercial Short Sale fiasco to get money out of your pocket.

Zach Childress caught spamming email to people using the same mailing list that he used with Karen Hanover Fraud Fame

Zach Childress caught spamming email to people using the same mailing list that he used with Karen Hanover Fraud Fame

DC is now calling himself :  Daryl.   DC  ie Daryl  is still using the same address to conduct activities from as he did with Karen Hanover: 100 W Brandon blvd, Brandon, FL, 33511  US.    Emails are coming from  Daryl Lee <>

DC knows there is money in his “email list” .  Under scrutiny from the FBI, he is  trying to trick others by sending emails out to his email list as DARYL to promote Zack. Zack who in my opinion just rehashes others content and does nothing new.  Zack will promise you the world from Credit services, partnering, doing the deals for you… All you have to do is hand over your money and he makes it sound like you don’t have to do anything to collect a check.  LIE!

Stay clear of these snake oil sales men.  I would go as far as to say do not go near anyone they are trying to recommend.  These guys all have a plan to take your money without any regret.  If you have trouble getting a refund, call your credit card company immediately and dispute the charge. You have up to 6 months to file your claim.

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 >>>>>> 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!

Karen Hanover Appeal – DENIED –

PACER indicates that Karen’s appeal was denied (see attached screenshot).  Next up, her fraud trial. 

“Once she is convicted of that, we can take up donations for a going away gift.  Maybe 60 years worth of cigarettes?  I understand that cigarettes are more valuable in prison than money.  – R Kim”





ALSO for your amusement:

Karen Hanover – Appeal To Be Self Employed Again

From the attached, looks like Hanover wants to appeal to be able to be self-employed again.  Under the present ruling, she is not allowed to be self-employed, presumably to scam again.  It appears her court date for the appeal is in October.  Wow, she already served prison time and now wants to appeal???  What a messed up justice system we have. – R. Kim.

DOWNLOAD THE PDF >>>> Karen Hanover Appeal