New York, Monday, September 02, 2024– Shan Hanes, the former CEO of Heartland Tri-State Bank in Elkhart, Kansas, has been sentenced to over 24 years in federal prison for his role in a $47 million cryptocurrency fraud scheme.
Hanes, 53, was convicted of orchestrating a series of wire transfers and embezzling funds, which led to the collapse of the bank and its subsequent takeover by the Federal Deposit Insurance Corporation (FDIC) in 2023.
Hanes became ensnared in a “pig butchering” scam, a type of cryptocurrency fraud where victims are deceived into making large investments with promises of significant returns. He embezzled funds from Heartland Tri-State Bank, as well as from a local church, an investment club, and his daughter’s college savings account, to invest in cryptocurrency. The expected returns never materialized, resulting in substantial financial losses.
The fraudulent activities culminated in the collapse of Heartland Tri-State Bank, one of only five U.S. banks to fail in 2023.
The FDIC’s intervention highlighted the severe impact of Hanes’s actions on the bank and its stakeholders.
Last week, U.S. District Judge John Broomes sentenced Hanes to 24 years in prison, far exceeding the 29-month sentence initially requested by prosecutors. Hanes had pleaded guilty in May 2024 to a single count of embezzlement by a bank officer.
Following the bank’s collapse and the FDIC takeover, Hanes was terminated and placed under house arrest. He was charged in February 2024, bringing closure to one of the most significant financial fraud cases in recent years.
