Shan Hanes, Embezzlement by Bank Officer, Kansas 2024

WICHITA, KAN. - Heartbreak and Financial Ruin for Bank Investors

A devastating $47.1 million cryptocurrency scheme has left a trail of financial devastation in its wake. The collapse of Heartland Tri-State Bank has resulted in a staggering loss of $9 million for investors. The mastermind behind this massive heist has been brought to justice, and now, those who suffered financial losses will receive some much-needed relief.

A federal judge has ordered that millions of dollars seized by the government be divided among investors who suffered financial losses. This comes after a lengthy investigation by the Federal Bureau of Investigation (FBI) and other agencies, which recovered $8 million in funds associated with the fraud.

The chief executive officer (CEO) of Heartland Tri-State Bank, Shan Hanes, 53, of Elkhart, initiated outgoing wire transfers of bank funds to a cryptocurrency wallet belonging to third parties. This brazen act of embezzlement has landed Hanes in hot water, with a prison sentence of 293 months after pleading guilty to one count of embezzlement by a bank officer in August 2024.

The U.S. Attorney's Office - District of Kansas has commended the FBI for its diligent work in uncovering the truth behind this massive scheme. 'The U.S. Attorney's Office - District of Kansas thanks the FBI for its diligent investigations that led to the discovery and recovery of over $8 million in stolen funds,' said U.S. Attorney Kate E. Brubacher. 'Through Hanes' conviction and prison sentence, the office obtained justice for the victims, and now with this court order, those victims will receive some financial relief.'

The case was 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 prosecuted the case.

Shan Hanes, a 53-year-old Elkhart resident, was sentenced to 293 months in prison for embezzling millions in cryptocurrency, causing a bank to fail. Hanes' actions resulted in a $9 million loss for investors. He pleaded guilty to one count of embezzlement by a bank officer in August 2024.

The restitution order means that millions of dollars seized by the government will be divided among investors who suffered financial losses. This is a welcome development for those who were affected by Hanes' actions.

Source: https://www.justice.gov/usao-ks/pr/victims-cryptocurrency-scam-awarded-restitution