Ceder Rapids, IA (KICD)--A former member of the Cycle Country board of directors pleads guilty in federal court to one count of wire fraud and one count of securities fraud.
59-year-old Lowell Gene “Bob” Hancher of Sheridan, Indiana admitted in a plea agreement that, between about September 2009 and January 2010, he defrauded Cycle Country. a publicly-traded Nevada corporation with headquarters in Spencer, Iowa. Hancher was the chairman of Cycle Country’s board of directors. Hancher abused his board position to cause Cycle Country to give Hancher over $500,000 under the guise of a program to take Cycle Country private through a stock buyback. Hancher misappropriated the vast majority of the money provided for the buyback.
Hancher also 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. Some of the investors lived in northern Iowa. The purported stock offering was for Scott Contracting, Inc.; a privately-held utilities, asphalt and general contracting firm based in Henderson, Colorado. Hancher misappropriated a portion of the investors’ funds rather than investing the funds as promised.
Hancher faces a possible maximum sentence of 45 years’ imprisonment, eight years of supervised release following any imprisonment, and hefty fines. Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Hancher was released on bond pending sentencing