SALT LAKE CITY — A Highland man prosecutors describe as a “prodigious fraudster” is headed to prison for misusing an investor’s money that he said was intended for buying the Seven Peaks Water Park.
Theodore Lamont Hansen, 50, will spend four years behind bars after pleading guilty to money laundering and bank fraud. U.S. District Judge Robert Shelby also ordered him to pay $1.4 million in restitution.
“Mr. Hansen has made a lifestyle of fraud, whether it was fraud against investors or fraud against a financial institution,” said IRS Special Agent in Charge Tara Sullivan.
Hansen obtained $1 million from a person identified in court documents as E.L. to buy the Provo-based water park and promised to return the money in 24 hours if the transaction wasn’t completed. In exchange, the investor would receive 23.5% ownership in the water park.
Hansen admitted that he used the money for things “inconsistent” with his representations, including buying a truck, and never returned the $1 million.
The bank fraud conviction stems from a large check-kiting scheme involving Bank of the West and Deseret First Credit Union. Bank of the West was left with a loss of more than $1.6 million. Hansen asked an elderly friend to cover the loss, but the friend would only agree to pay a portion of the amount, taking the loss amount down to $585,000, according to court documents.
Federal prosecutors called Hansen a “prodigious fraudster whose only real occupation is convincing others to give him money and property.”
Hansen was convicted in state court of selling unregistered securities and placed on probation for 36 months.
As a condition of his release, Hansen was required to disclose to any prospective investor in writing that he had $45 million in outstanding judgments against him — something he did not do with the water park investor, prosecutors said.
U.S. Attorney John Huber said Hansen ignored an opportunity from the state court to “separate from a life of crime.”
“It is unfortunate that more victims had to pay such a steep price for this swindler’s federal crimes after he ignored the state court’s orders in his previous conviction,” Huber said. “There are far too many fraudsters in Utah who are truly wolves in sheep’s clothing, and Utah investors must be more mindful when parting with their hard-earned savings.”