Crystal Lake man’s sentencing for $8M Ponzi scheme delayed again as he aims to take back McHenry County plea

A Crystal Lake man who pleaded guilty in federal court to defrauding investors out of more than $8 million has appealed for his sentencing to be delayed again due to ongoing health issues, according to court documents.

Alan J. Hanke, 60, pleaded guilty in New York federal court in June to a multimillion-dollar Ponzi scheme and to filing bankruptcy in an attempt to conceal his crimes, according to the U.S. attorney’s office.

Hanke, the sole member of his company, IOLO Capital, was arraigned last year on charges of security fraud conspiracy, wire fraud conspiracy, money laundering conspiracy, wire fraud, bankruptcy fraud, and filing a false bankruptcy declaration. He initially pleaded not guilty.

Hanke was scheduled for sentencing Sept. 4 after it was postponed twice. Hanke’s attorney, Michael Schneider, submitted a third continuance request last week, asking for the sentencing to take place after Nov. 28, citing Hanke’s ongoing health issues.

Hanke “suffers from esophageal stenosis related to radiation treatment he received after he was diagnosed with cancer,” Schneider wrote in the request. Hanke was scheduled for surgery to insert a feeding tube, as swallowing has become more difficult over the years. But the procedure has been delayed “several times” due to his “ill health,” and he is scheduled for the surgery Oct. 27, according to the court document.

A status conference was set for Sept. 4 “to discuss in detail Mr. Hanke’s physical condition, status, prognosis and future care plan, and the Bureau of Prisons’ ability to provide the necessary care for Mr. Hanke in a custodial setting,” according to court records.

A tentative sentence was set for Oct. 16.

Schneider declined to provide further comment.

Hanke faces five years in prison, according to officials with the U.S. attorney’s office for the Eastern District of New York, where Hanke’s federal case is being prosecuted.

Hanke was arrested on federal charges in January 2024 in Cape Canaveral, Florida, as he was boarding an international cruise, authorities said.

On the same day of the sentencing continuance request, Hanke filed a request to reverse his guilty plea in McHenry County court. Just weeks ago, he pleaded guilty to a Class 4 felony of using a credit or debit card with the intent to defraud the McHenry-based Sons of the American Legion Post 491.