A former bank executive has pleaded guilty to embezzling a staggering $47.1 million in a brazen cryptocurrency scheme, leaving investors with significant losses.
Shan Hanes, 52, of Elkhart, Kansas, is the former chief executive officer (CEO) of Heartland Tri-State Bank (HTSB) in Elkhart, Kansas. Hanes initiated a series of 10 outgoing wire transfers between May 2023 and July 2023, totaling $47.1 million of the bank’s funds.
The funds were transferred to multiple cryptocurrency accounts controlled by unidentified third parties during the time HTSB was insured by the Federal Deposit Insurance Corporation (FDIC).
‘Shan Hanes is a liar and a master manipulator who caused Heartland Tri-State Bank to collapse. Even as he was squandering away tens of millions of dollars in cryptocurrency, Hanes orchestrated schemes to cover his tracks concerning the losses at the bank,’ said U.S. Attorney Kate E. Brubacher.
Hanes is scheduled to be sentenced on August 8, 2024, and faces a maximum of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case is being investigated by the Federal Bureau of Investigation (FBI), Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG), Federal Reserve Board – Office of Inspector General (FRB-OIG), and Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG).
Assistant U.S. Attorney Aaron Smith is prosecuting the case. The incident highlights the need for increased vigilance in the banking industry to prevent such large-scale embezzlements.
‘Shan Hanes exploited his position as a bank executive to commit fraud and embezzle funds that ultimately led to Tri-State Bank’s failure,’ said Jon Ellwanger, Special Agent in Charge, Western Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau.
Hanes’ actions have left many victims unable to recoup their losses, which include life savings and retirement funds. The Department of Justice is committed to holding individuals accountable for such crimes, as stated by U.S. Attorney Kate E. Brubacher.
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Key Facts
- State: Kansas
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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