Shan Hanes, the former CEO of Heartland Tri-State Bank in Elkhart, Kansas, has been sentenced to over 24 years in prison for embezzling $47 million from his own bank and other sources. This sentencing comes after Hanes pleaded guilty to a single count of embezzlement by a bank officer.
Hanes, 53, was involved in a “pig butchering” scheme where scammers convinced him to wire millions of dollars under false pretenses of lucrative crypto investments. His actions led to the collapse of Heartland Tri-State Bank, one of only five U.S. banks that failed in 2023. The Federal Deposit Insurance Corporation (FDIC) had to take over the bank, affecting shareholders and causing significant losses in the community.
Despite his prominent role in the banking sector and contributions to his community, including serving on boards and testifying before Congress, Hanes’s criminal activities spanned over eight years. He misappropriated funds from various sources, including a church, an investment club, and his daughter’s college savings account.
Hanes’s embezzlement began in late 2022 when he fell victim to the scam and started diverting bank funds. The scheme involved multiple wire transfers that eventually led to the bank’s failure and wiped out shareholders’ savings. Although depositors were protected through a transfer to another bank, shareholders faced substantial losses.
During his sentencing, Hanes showed minimal remorse, which was noted by the court and local community members. Despite his pleas for more time to recover the lost funds, the court imposed a sentence longer than the prosecution’s recommendation, reflecting the severity of his actions.
This case highlights the risks of fraud in the cryptocurrency space and underscores the need for vigilance against such schemes.
