SPRINGFIELD –– Illinois Secretary of State Jesse White commended
United States Attorney Frances C. Hulin for her successful
conviction of Nelson G. Hallahan, 52 and his wife, Janet
Hallahan, 41 of Peoria, Illinois. The Hallahans pled guilty on
January 6, 2000 to 1 count of Conspiracy to Commit Mail Fraud and
Bank Fraud and 1 count of Conspiracy to Commit Money Laundering.
Nelson Hallahan is a former insurance agent and securities
salesperson who maintained an office in Peoria, Illinois doing
business under the name Hallahan and Associates. Nelson Hallahan
solicited money from his insurance and securities clients for
Janet Hallahan's business, Sunset Tans. Janet Hallahan was the
President and sole shareholder of Sunset Tans, Inc, an Illinois
corporation begun in early 1994 to operate a tanning salon.
Investors were told that their investments would earn more money
if they would borrow against their insurance policies or withdraw
their mutual funds and loan the money to Janet Hallahan. The
Hallahans told investors that the tanning salon was doing very
well and that the money would be used to buy additional tanning
beds and other expenses of operating the business. Investors
were told that the Hallahans would repay the loans, the interest
charged by the insurance company for taking out policy loans and
an additional ten percent interest. The Hallahans made 60 loans
in this matter and defrauded investors of over $600,000. Money
loaned by investors was not used to purchase tanning beds or
operate the tanning salon but rather was used to pay off earlier
Sunset Tans investors or to make repayments to other investors
that Nelson Hallahan had been ordered to pay pursuant to a
Consent Order issued by Secretary of State White's Illinois
Securities Department for previous securities violations.
Nelson Hallahan was Censured, Fined $10,000 and Prohibited from
offering or selling securities in the State of Illinois by the
Illinois Securities Department on October 31, 1995.
The Secretary of State, Illinois Securities Department, the
Criminal Investigation Division of the Internal Revenue Service,
the United States Postal Inspection Service, the Federal Bureau
of Investigation, and the Pekin Police Department investigated
the case. Supervisory Assistant United States Attorney Darilynn
J. Knauss is the prosecuting attorney.
Secretary of State White's Illinois Securities Department
regulates the Illinois securities industry, providing for the
protection of Illinois investors and the maintenance of a fair
and orderly securities marketplace that encourages capital
formation and economic growth in the State of Illinois. Illinois
requires that all securities dealers, salespersons and investment
advisers and their securities offerings be registered with the
Department unless exempt by law. The Department enforces
compliance with standards of conduct among those licensed to do
business in Illinois through registration and on-site audits as
well as investigating consumer allegations of fraud or improper
practices in the securities marketplace. Tanya Solov is the
current Director of the Illinois Securities Department.
