Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)
Earlier today, in federal court in Brooklyn, New York, Alan John Hanke, the sole member of IOLO Capital (IOLO), pleaded guilty to conspiracy to commit securities fraud for his role in misappropriating more than $8 million as part of a Ponzi scheme. As part of his plea, Hanke also stipulated that he filed a bankruptcy petition and documents in a bankruptcy proceeding to conceal the conspiracy. Hanke was indicted in February 2024. The proceeding was held before United States District Judge Ramon E. Reyes, Jr. When sentenced, Hanke faces up to five years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation (“FBI”), New York Field Office, and David Walker, Special Agent in Charge, FBI, Tampa Field Office, announced the guilty plea.
“Hanke admitted today that he conspired to defraud clients of millions of dollars of their investments, and then tried to cover up his crime by declaring bankruptcy which was an intentional abuse of the U.S. Bankruptcy Court,” stated United States Attorney Peace. “Today’s guilty plea reaffirms my Office’s efforts to root out white-collar crime where we find it and ensure integrity in the financial markets and the court system.”
As alleged in the indictment, between November 2018 and August 2021, Hanke persuaded numerous investors, often in meetings in New York City, to invest in IOLO or related Hanke-run companies. Hanke promised investors high returns within short periods of time by investing in, among other things, “standby letters of credit,” “medium term notes,” and “high yield bonds.” He also assured investors that their investments would be insured against losses. As alleged, however, nearly all the money that the victims invested with Hanke was not recovered. The bulk of the victims’ money went to Hanke’s personal expenses, including cruises, airfare, hotels, gambling expenses, and a luxury car. Hanke also paid co-conspirators and other investors with money that he wrongfully obtained during the scheme. Hanke filed a bankruptcy petition in June 2021 in which he sought to discharge the debts that he owed to his victims. In the bankruptcy petition, Hanke disclosed that he received monthly Social Security disability payments but did not disclose the millions of dollars of income he received from his victims. Hanke also did not disclose the proceeds from the sale of an airplane, or that he used the proceeds for personal expenses, including gambling and repairs to a close relative’s home, as well as $180,000 that was withdrawn in cash.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Nicholas J. Moscow and Matthew Skurnik are in charge of the prosecution, with assistance from Paralegal Specialist Madison Bates.
The Defendant:
ALAN JOHN HANKE
Age: 50
Crystal Lake, Illinois
E.D.N.Y. Docket No. 24-CR-27 (RER)