Hansen was born in Estherville, Iowa to Edna and Christian Hansen, who was a Danish immigrant. In 1960, he burned down a bus garage. He was convicted of arson and sent to prison. His wife divorced him when he was in prison. He was assessed as having an infantile personality and released in 1962. He married another woman in 1963. The couple and their two children moved to Anchorage, Alaska, in 1967. In 1977, he was convicted of theft and sent to prison. He was diagnosed with bipolar disorder and in 1978 was released. In 1983, he was charged with assault, kidnapping, firearms offences, theft and deception. 