Missouri man indicted for $4.7 million investment fraud scheme

A Clinton, Missouri, man has been indicted and arrested for his part in a $4.7 million scheme to defraud about 90 investors who believed they were purchasing cattle for resale at a profit.

Meanwhile, a man who allegedly posed as the scheme’s fake veterinarian has consented to findings that he aided Cameron J. Hager in the plan.

Hager, 42, was charged in a nine-count indictment returned under seal by a federal grand jury March 28, according to the U.S. Attorney’s Office for the Western District of Missouri. That indictment was unsealed and made public in early April upon Hager’s arrest and initial appearance at the U.S. District Court in Jefferson City, Missouri.

An investigation by Missouri Secretary of State Jay Ashcroft’s Securities Division led to the federal indictment and arrest, his office said. The office alerted the Federal Bureau of Investigation and the U.S. Attorney’s Office. 

A second man in the scheme, Robert D. Hawkins, who allegedly posed as a veterinarian, consented to the findings April 20, according to a division press release.

According to information from the division and the attorney’s office, from March 2016 to August 2017, Hager allegedly solicited investors from at least 21 different states to invest in his 5A Holdings. He raised roughly $4.7 million, purportedly to purchase and sell cattle for profit. Hager stated in marketing materials that the average return on investment was 23.71 percent in just 138 days.

Hager told investors he would arrange to purchase herds of cattle from farmers or ranchers wanting to sell their herds due to financial distress and inability to maintain their herds. Hager allegedly claimed the cattle were evaluated, including by a “seasoned veterinarian,” and determined a predictable profit could be realized by maintaining and feeding the cattle until an optimum time for marketing the livestock.

No cattle were purchased. Before the scheme unraveled, according to court documents, Hager allegedly used most investor funds for his personal living expenses, such as paying his home mortgage and credit card bills, travel expenses like lodging and airfare, payments for religious conferences, numerous Amazon purchases, building supplies, taxes and to buy personal vehicles.

Hager also allegedly used at least $1.2 million of investor funds to pay commissions for referring others to invest alleged returns on investments and personal expenses. 

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 residential property, which, according to the attorney’s office, is currently listed for sale with an asking price of $899,000, a 2013 Ford F-150 pickup truck, a 2006 Toyota 4Runner and two 2017 Winnebago travel trailers.

Fake vet

Meanwhile, Hawkins allegedly pretended to be the veterinarian for 5A Holdings—even taking investors to several operations that he stated held the 5A’s cattle.

Per the order, according to a securities commission press release, Hawkins will pay $20,000 to the Investor Education and Protection Fund, with $10,000 suspended for 10 years if he doesn’t violate the Missouri Securities Act or the terms of the order. He is restrained from selling securities and barred from registering as an investment agent in Missouri.

Hawkins also will cooperate with the division in any pending proceedings in this matter, according to the press release.

Missouri Securities Commissioner David M. Minnick noted in one instance, a Virginia resident referred his uncle, from Tennessee, to invest in 5A Holdings. The uncle invested about $10,000 in early January 2017. The uncle and his nephew flew from Tennessee to Kansas City where they met with Hawkins, who introduced himself as veterinarian Robert Harper and drove them to several properties supposedly owned by 5A Holdings.

“They would look 10 to 15 minutes at a time with binoculars from the fence line,” Minnick said. “When a car would drive by, the Virginia resident noticed that ‘Harper would appear nervous.’”

The division also ordered Hager, Hawkins and 5A Holdings to show cause why they should not be ordered to pay restitution plus interest, civil penalties and investigation costs totaling more than $3.1 million, according to the press release.

Amy Bickel can be reached at 620-860-9433 or [email protected].