Former Hanover Corporation CEO Terry Kretz was sentenced to 14 years in prison and ordered to pay $14.8M in restitution for orchestrating an $18 million Ponzi scheme. According to court documents, Kretz offered clients the opportunity to invest in Hanover through promissory notes bearing high interest rates, however, more than half of the money invested in Hanover went to repay earlier investors, to pay Hanover’s salaries and overhead and to fund personal luxuries. Daryl Bornstein, a Hanover salesman, and Robert Haley, Hanover’s chief financial officer, previously pleaded guilty to similar charges. DOJ
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