Man indicted for $4.7 million investment fraud scheme
A Clinton man has been indicted in a $4.7 million investment fraud scheme in which he defrauded 89 investors who believed they were purchasing cattle for resale at a profit.
Cameron Hager, 42, was charged in a nine-count indictment returned under seal by a federal grand jury on Wednesday.
The indictment alleges that Hager, who operated 5A Holdings, LL, engaged in the fraud scheme from July, 17, 2015 to March 28, 2018.
Hager allegedly induced victims to invest in a “cattle fund” that was used to purchase herds of cattle to be sold later at a substantial profit, although he never bought any cattle.
According to court documents, Hager received approximately $4.7 million dollars from approximately 89 investors. Investment amounts ranged from $1,000 to $267,000.
Hager was accused of telling investors that he would arrange to purchase herds of cattle from farmers or ranchers who had reasons to sell their herds. He claimed that he evaluated the cattle and determined that a predictable profit could be realized by maintaining the cattle until it was time to sell it.
Law enforcement believed that Hager induced other individuals to recruit investors, although he knew the representations they made to potential investors were false.
Court documents said Hager used the majority of investor funds for his personal living expenses, including paying his home mortgage, travel expenses, lodging, airfare and purchasing personal vehicles.
The total loss of the investors’ funds is currently estimated at $3.5 million dollars.
The indictment also contains a forfeiture allegation, which would require Hager to forfeit to the government any property derived from the proceeds of the alleged offenses, including $394,074 in an Equity Bank account, his 46.6 acre property, a 2013 Ford F-150 pickup truck, a 2006 Toyota 4 Runner and two travel travel trailers.
