The state auditor has issued a cease and desist order against a man suspected of selling worthless contractor bonds to companies that used them to insure $4 million in public works projects.
State Auditor and Insurance Commissioner John Morrison said Robert Joe Hanson of Las Vegas used the company name Individual Surety LTD and is not licensed in Montana.
Morrison’s office learned of Hanson’s suspected scam by another contractor who was trying to verify Hanson’s license. Hanson also had given that contractor a list of projects he was currently insuring.
The state alleges Hanson illegally guaranteed surety bonds for $185,000, $13,900 and $43,000 _ costing the contractors thousands of dollars. The majority of the solicitations were made in the Butte area. Authorities believe there could be more victims.
Cease and desist orders have also been issued against Hanson in Nevada, Florida and Georgia.
His last known address is Henderson, Nev. and his company’s address is in Las Vegas. There is a warrant for Hanson’s arrest in California, Morrison said.
Hanson has also previously done business as Millennium Bonding and Global Bonding.
Copyright 2004 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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