Apr 12, 2016 12:51 PM
Former Portsmouth millionaire expected to plead guilty to wire fraud
PORTSMOUTH — Former millionaire Karl Hahn is expected to plead guilty April 19 to a federal charge of financial wire fraud.
The Portsmouth Herald reports that no further details on the terms of the plea or sentencing recommendations were available. The federal charge alleges he "devised a scheme to defraud" and obtain more than $2 million from Portsmouth artist and filmmaker Chase Bailey through "false and fraudulent pretenses, representations and promises," according the Portsmouth Herald.
Hahn was once the owner of a waterfront mansion in Portsmouth, with a yacht docked in back. According to the Herald report, the Financial Industry Regulatory Authority said Hahn owed Bailey $4.1 million in compensatory damages and $6.4 million in punitive damages. Court records say Hahn promised Bailey he would contribute $1.9 million toward a profitable investment for the both of them, but instead used the money for personal use.
In October 2011, Hahn was scheduled to plead guilty in the same federal court, but backed out of a negotiated plea agreement at the 11th hour, the Portsmouth Herald reported.