(Sioux City)—An Indiana man who defrauded Iowa investors and a local manufacturer has been sentenced to more than eight years in federal prison.
59-year-old Lowell Hancher was sentenced yesterday (Wed.) after pleading guilty in October of last year to one count of wire fraud and one count of securities fraud.
At a plea hearing, Hancher admitted that between about April 2005 and January 2010 he fraudulently obtained money from investors that was supposed to be invested in connection with a public stock offering.
Hancher also admitted that between about September 2009 and January 2010 he defrauded Cycle Country Accessories Corporation in Spencer while he was chairman of the company’s board of directors. Hancher admitted bilking the company out of $500,000 under the guise of a program to take Cycle Country private through a stock buyback. He admitted to misappropriating the vast majority of that money.
In addition to the 97 month prison term, Hancher was also ordered to pay $3.13 million dollars in restitution to his victims and must serve a five-year term of supervised release following the prison term.
Hancher was released on bond previously set and is to surrender to federal officials on a date yet to be set.
