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.