Hatzenbeller Sentenced in Securities Fraud Case

Hatzenbeller Sentenced in Securities Fraud Case

Ken Hatzenbeller has been convicted of securities fraud in a state lawsuit. Haztenbeller was charged with securities fraud in 2016 after investors in his Shoot the Moon restaurant group reported to the state that their investments had evaporated. The company had claimed bankruptcy in October 2016.

Hatzenbeller Pleads No Contest

Hatzenbeller pleaded no contest to one count of fraudulent securities practices, receiving a six-year deferred sentence. In late June, Hatzenbeller had signed a plea agreement with prosecutors from the Montana State Auditor’s agreeing to pay restitution totaling more than $1.7 million. The agreement also included probationary conditions for six years. In exchange for the plea, prosecutors agreed to drop four additional fraudulent securities-related charges, all felonies.

In the June plea deal, Hatzenbeller stated that he had the ability to pay the monetary obligations of the deal but since then, his monetary situation has changed.

In a parallel action, Haztenbeller was also sentenced on federal charges in late June. In that case, he agreed to pay back another $1 million to a Utah bank for spending a $500,000 loan on payroll rather than on restaurant fixtures.

Securities Fraud Case Coming to a Close

Hatzenbeller’s hearing was the last in a series of hearings since the bankruptcy filing of Shoot the Moon in October 2015. The restaurant group owned a dozen restaurants across Montana, Idaho, and Washington state.

As a result of misdealings on the part of Hatzenbeller, charges were brought against him in both state and federal court under criminal and civil cases. In another case he received a 30-month sentence in federal prison in Sheridan, Oregan. His lawyer has said Hatzenbeller will report to prison, as ordered, on July 25.

Did You Lose Money in an Investor Scam?

If you invested with the Chans or think you may be involved in a scam, you may have certain legal rights that require your immediate attention.

Call a Securities Fraud Attorney Today

If you are looking for a securities fraud attorney to review your rights and options, the securities fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from for clients for wrongful actions.

With offices in Los AngelesNew YorkWest Palm Beach and Miami, our securities attorneys represent clients nationwide and may be able to help you recover your investment losses.

Contact a securities fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

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Booz Allen Retirees May Have Securities Fraud Suit

Booz Allen Retirees May Have Securities Fraud Suit

A lawsuit against Booz Allen Hamilton Inc. by retirees of the government contractor has been partly resuscitated by The Second Circuit. The court claims that the plaintiffs had no case under the Employee Retirement Income Security Act (ERISA) but a securities class action is possible.

Booz Allen Employees Lose Money in Split Deal

The three retirees in the suit, Bruce Pasternack, Reginald Boudinot and Paul Kocourek, retired from Booz Allen before a deal in 2008 split the contracting side of the business with the consulting side. The consulting side of the business folded into PricewaterhouseCoopers LLP and the contracting unit went to the private equity giant Carlyle Group.

Until the 2008 deal, the company had been owned by its employees, who accrued equity under a stock rights plan (SRP). Typically, upon retirement, employees sold their equity back to the company for gain. When Pasternack and Boudinot retired, they sold their shares back Booz Allen. Shortly after, the Carlyle Group acquired the contracting unit from Booz Allen for far more than Booz Allen had paid for the retiree’s shares.

A few months later, Kocourek managed to sell his shares to Carlyle Group directly at a higher price, only to find out that his shares were also undervalued when the company took Booz Allen public two years later for almost double what it had initially paid for it.

The three filed suit to claim they lost money in the deal and the companies had violated its duties to the SRP under ERISA. A district judge dismissed the initial claims, stating that there was no duty to the SRP under ERISA.

Booz Allen Suit to Move Forward with Securities Fraud Charge

With the claims rejected, Kocourek tried to amend the complaint to a securities fraud claim on behalf of a class of hundreds of Booz Allen employees. Upon filing the amendment, U.S. District Judge Lew Kaplan denied Kocourek the permission, stating Kocourek waived his right to bring a securities fraud suit when he transferred his shares to Carlyle.

Now, the Second Circuit court has said that the waiver Kocourek signed wasn’t legal and a securities fraud case could move forward. We’ll continue to report as the case unfolds.

Did You Lose Money as a Result of Securities Fraud?

If you invested with the Chans or think you may be involved in an EB-5 investor scam, you may have certain legal rights that require your immediate attention.

Call an Investment Fraud Attorney Today

If you are looking for a securities fraud attorney to review your rights and options, the securities fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered over $100 million from for clients for wrongful actions.

With offices in Los AngelesNew YorkWest Palm Beach and Miami, our securities fraud attorneys represent clients nationwide and may be able to help you recover your investment losses.

Contact a securities fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

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