A Chaska man is the second executive with ConServ Corp. to face charges
resulting from a
Ponzi scheme involving over $8 million. Kenneth R. Hasse, founder and chairman of ConServ
Corp. was charged on Monday, December 13, 2010, in U.S. District Court
in Minneapolis, Minn.
The U.S. Government charged Mr. Hasse with fraud and tax charges and accused
him of bilking more than $8 million from unsuspecting investors. According
to the charges, the 61-year-old executive raised the money between October
2004 and February 2007. Mr. Hasse is also being accused of under-reporting
his income to benefit his tax liability.
Investors were under the impression that their money was to be used to
install electrical submetering devices on apartment buildings. In June
2008, Minnetonka-based ConServe Corp. filed for Chapter 7 bankruptcy.
The former CEO of ConServe Corp., David Hugh McCaffrey, 66, of Wayzata,
was recently sentenced to 30 months in prison for his alleged role in
the investment scam. Mr. McCaffrey has been credited with assisting the
government’s investigation into Mr. Hasse and others who are believed
to have been participants in the $8 million Ponzi scheme.