Indiana business man admits guilt in 2 fraud plots

IOWA CITY, Iowa (AP) - An Indiana businessman has pleaded guilty to ripping off an Iowa company and duping investors in separate fraud schemes totaling $2.3 million.

Lowell Hancher of Sheridan, Ind., pleaded guilty Friday to one count of wire fraud and one count of securities fraud. He's been released from custody pending sentencing, where he'll face a maximum prison term of 45 years.

In a plea agreement, Hancher acknowledged he defrauded investors in a Colorado construction company of $1.8 million between 2005 and 2010. Some investors lived in northern Iowa and were told their money would be used for a public stock offering.

Separately, Hancher said that he abused his position on the board of Spencer-based manufacturing company Cycle Country to misappropriate more than $500,000 for himself under a phony stock buyback program.