Shan Hanes, Embezzlement, Kansas 2023
A devastating case of embezzlement has shaken the financial world in Kansas. Shan Hanes, a 52-year-old man from Elkhart, pleaded guilty to using his position as a bank executive to embezzle millions of dollars, causing the bank to fail.
Between May 2023 and July 2023, Hanes initiated a series of 10 outgoing wire transfers totaling $47.1 million of Heartland's funds to a cryptocurrency wallet. 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.
Hanes previously served as the chief executive officer (CEO) of Heartland Tri-State Bank (HTSB) in Elkhart, Kansas. As CEO, he exploited his position to commit fraud and embezzle funds that ultimately led to the bank's failure.
“Shan Hanes is a liar and a master manipulator who caused Heartland Tri-State Bank to collapse,” said U.S. Attorney Kate E. Brubacher. “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.”
“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 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 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) are investigating the case.
Assistant U.S. Attorney Aaron Smith is prosecuting the case.
Hanes' actions have left many victims without access to their life savings and retirement funds. The case serves as a stark reminder of the devastating consequences of embezzlement and the importance of holding those responsible accountable.
Key Facts
- State: Kansas
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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