Ex-CEO of Collapsed Bank Sentenced to Over 24 Years in Prison for Embezzling $47,100,000 in Crypto Scheme: DOJ

The previous CEO of a failed financial institution in Elkhart, Kansas will spend 24 years behind bars after funneling tens of millions of financial savings right into a cryptocurrency scheme.

The Justice Division says that between Could and July final yr, Shan Hanes, who was then CEO of Heartland Tri-State Financial institution (HTSB), despatched a complete of $47.1 million of the financial institution’s cash to a cryptocurrency pockets that concerned was on the pig slaughter.

The mode is a well-liked crypto scheme the place scammers construct relationships with their meant victims to lure them into fraudulent investments.

The 53-year-old initiated 11 outgoing financial institution transfers over the interval, funding a number of cryptocurrency accounts managed by unidentified third events.

The DOJ says Hanes’ motion finally brought about the financial institution to fail and traders to lose $9 million, though the Federal Deposit Insurance coverage Company (FDIC) picked up the $47.1 million loss.

Says U.S. Legal professional Kate E. Brubacher:

“Hanes’ greed knew no bounds. He violated his skilled obligations, his private relationships, and federal legislation. Shan Hanes not solely betrayed Heartland Financial institution and its traders, however his unlawful schemes additionally jeopardized belief in monetary establishments.”

The Client Monetary Safety Bureau, which assessed the losses, stated HTSB had about $139 million in property earlier than it filed for chapter in 2023. The company additionally raised the alarm about related schemes that might put monetary establishments in danger.

“We advocate that the Council raises consciousness amongst banks about cryptocurrency scams and trains examiners on such scams and related preventive and detective checks at banks.”

Hanes was sentenced Monday after pleading responsible to at least one depend of embezzlement from a financial institution official.

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