Man will spend 8 years in prison for scamming Iowans - KWWL - Eastern Iowa Breaking News, Weather, Closings

Man will spend 8 years in prison for scamming Iowans

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CEDAR RAPIDS (KWWL) -

An Indiana man will spend eight years in federal prison after admitting he misused money from Iowa investors and an Iowa business.

In a plea agreement, Lowell Gene "Bob" Hancher, 59, admitted he fraudulently obtained money from investors that was supposed to be invested in connection with a public stock offering throughout a period of nearly five years.

The purported stock offering was for Scott Contracting, Inc., a privately-held utilities, asphalt and general contracting firm based in Henderson, Colo.

Some of the investors lived in northern Iowa.

Hancher admitted he misappropriated a portion of the investors' funds rather than investing the funds as promised.

Hancher also admitted he misused money from Cycle Country, a publicly-traded company that makes parts for ATVs and golf carts, with headquarters in Spencer.

Hancher was chairman on Cycle Country's board of directors and took approximately $500,000 under the guise of a program to take the company private through a stock buyback. Hancher misappropriated the vast majority of that money.

In addition to the eight-year prison sentence, Hancher is ordered to make $3,139,232 in restitution to the victims of his offenses. He must also serve a five-year term of supervised release after the prison term.

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