Marana woman sues scrutinized investment firm

A Marana woman has sued a Dove Mountain man already under investigation by the state for allegedly operating a Ponzi scheme.

Rosario Trask on May 7 filed the lawsuit in Pima County Superior Court, eight months after the Arizona Corporation Commission issued a cease-and-desist order to stop Michael Hannan and his 12 Percent Fund from soliciting investors.

The state alleges that Hannan already had or was about to commit fraud.

Since 2003, Hannan has promised a 12-percent return on minimum $50,000 investments in his fund. He lives in Heritage Highlands.

Between February 2005 and May 2006, Trask invested $275,000 in the fund, managed by Hannan’s company Coyote Growth Management, which is also named in the cease-and-desist order.

Trask learned about Hannan’s previous financial misconduct and the state’s cease-and-desist order from reading a Feb. 14 story in the EXPLORER. She requested in writing that Hannan return all of the money she had invested in the fund.

Hannan has refused to give any money back, according to court records.


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posted by steve_o @ 5/30/2007 12:23:00 PM