A 43-year old man from Clinton, MO was recently Sentenced in federal court to get a $4.7-million investment fraud scheme in which he tricked 92 investors who believed they were buying cattle for resale at a profit. The court ordered Hager to pay $3,236,547 from restitution to the victims of the offense.
Hager allegedly pleaded guilty on June 26, 2018, to one count of wire fraud and one count of money laundering.
Hager, Who operated 5A Holdings, LLC, confessed he engaged in the fraud scheme in July 2015 to September 2017. Hager solicited sufferers to invest in a”cows fund” which was used to buy herds of cattle to be sold later at a considerable gain, although he never really bought or intended to purchase any cows.
Hager obtained $4.7 million by 92 investors, with investment figures ranging from $1,000 to $267,000. After taking into consideration money repaid to investors during the scheme, and money paid to investors by Hager following the strategy had been exposed, the entire reduction amount was $3,236,547.
Police say Hager deposited $394,074 to his company bank accounts. He also used the proceeds of the plot, among other items, to make significant payments to the mortgage of his 46-acre residential property and also to buy a Ford F-150 pickup truck, a Toyota 4Runner, and two Winnebago travel trailers. All of Hager’s interest in that property has been forfeited to the government.
Hager convinced his victims he Was finding herds of cattle that farmers in distress required to sell. He explained he would use investor money to buy these herds, then transport the cattle to pastures/feed a lot owned by himself or his firm, 5A Holdings, in which the cows will be cared for, fattened, and finally sold to slaughterhouses in which Hager had”contacts.”
Suggests Hager consistently represented these trades would make a net”return” of 23% – 28% on each investment. Hager paid an individual to present as a vet when at least one investor went to Missouri to scrutinize the cattle herds.
Investors Filed complaints with the Missouri Secretary of State’s Securities Division, and also the office opened an investigation. Hager delivered the Securities Division a written reaction to the allegations of fraud; in that response, he allegedly admitted there were no cows and that he’d made false representations to investors.
The Wire fraud charge relates to e-mails delivered by Hager to a sufferer investor. The money laundering charge relates to Hager’s withdrawal of $21,500 from his business bank accounts to buy a Ford F-150 pickup truck.
The FBI decided that the money pulled by Hager with this trade was derived from his wire fraud strategy.