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MN-based elder fraud magazine sale case coming to close in Minneapolis trial

Federal prosecutors called the $300 million scheme "the largest elder fraud scheme in the nation."

MINNEAPOLIS — When charges were announced three years ago, federal prosecutors called it "the largest elder-fraud scheme in the nation." Now, the $300 million dollar magazine telemarketing case is coming to a close in a Minneapolis trial.

Originally 60 people were charged. Now, three of the only remaining defendants are on trial at the Minneapolis Federal Courthouse in the case that affected 150,000 elderly and vulnerable people across the country.

It was an alleged scheme carried out over the phone, confusing and tricking elderly and vulnerable people all over the United States into paying thousands of dollars for magazines from call centers in places like Fridley, St. Louis Park and South Saint Paul.

"They made it sound like a great deal," said federal prosecutor Joe Thompson.

When federal investigators started looking into the case, they recorded phone calls undercover while posing as victims.

"So it just means we are going to go ahead and lower the monthly payments you had left, our way of apologizing for any inconvenience. I'm sure that won't bother you at all," one alleged scammer said.

"Gonna save me money for a change?" the undercover agent replied.

Despite conversations just like that one, the feds say the alleged scammers — 60 people in a pyramid of different companies — would only increase the frequency of the billing, all told, allegedly stealing $300 million.

At least 16 of the defendants are Minnesotans — including Monica Hanssen and her ex-husband Tim — who answered questions from KARE 11's Lauren Leamanczyk back in 2021.

"You and Monica are charged with scamming a lot of senior citizens," Leamanczyk said.

"Yeah, it's a preposterous, bull**** charge," Tim Hanssen responded.

Since that interview, Tim Hanssen pleaded guilty. Monica Hanssen was set to stand trial this month with three other suspects. But she instead, prosecutors say she fled the country. The trial proceeded with those other three.

Nearly all of the remaining defendants have pleaded guilty, meaning when the trial ends next week, the victims will be closer to justice. What remains after that is sentencing for many of the defendants who have been convicted and an assessment of how much money can be paid back. 

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