Ex-Kansas Bank CEO Sentenced to Over 24 Years for $47 Million Crypto Fraud
A previous Kansas bank exec was sentenced to 293 months in federal slammer for embezzling $47.1 million in a cryptocurrency rip-off scheme that pioneered to the collapse of Heartland Tri-Case Bank (HTSB).
Shan Hanes, 53, the previous CEO of HTSB, pleaded guilty to one matter of embezzlement by a bank polices officer.
$47M Crypto Bamboozle
Courtroom documentation disclosed that Hanes executed 11 unapproved cable transmits between Could and also July 2023, bearing $47.1 million of the bank’s funds to a cryptocurrency wallet as contingent of a scheme granted as “pig butchering,” in which innocent plutocrats are tempted correct into deceptive digital asset outlays.
Preferential Agent in Expense Justin R. Bundy decreed Hanes’s sentencing for his responsibility in the $47.1 million embezzlement bamboozle, which eventually pioneered to the inability of Heartland Tri-Case Bank.
The Federal Down payment Insurance Firm (FDIC), which insured HTSB at the time, soaked up the loss, while the bank’s plutocrats rotted a $9 million hit as the campi failed under the weight of the rip-off.
The FDIC attested that the deceptive transmits were lugged out to plenty of cryptocurrency accounts controlled by unknown 3rd parties, escaping the bank incapable to redeem its funds.
A federal courtroom owns ordered that restitution for the preys be granted at a distinguish hearing within the next off 90 days.
Officials Condemn Ex-spouse-Bank CEO’s Job in Bank’s Discomfiture
U.S. Attorney Kate E. Brubacher condemned Hanes for his unexpurgated greed, dicta that “he encroached his veteran obligations, his grandiose relationships, and also federal law. Not single did Shan Hanes betray Heartland Bank and also its plutocrats, but his wrongful equipments also endangered self-stability in monetary campuses.”
In a tantamount tone, FBI Preferential Agent in Expense Stephen Cyrus emphasized that Hanes, who was desirable by the Elkhart municipal, exploited his posture for grandiose gain via a bamboozle that pioneered to the bank’s collapse. He added that Hanes’s dedication was to preserve the bank and also its visitors, not to confiscate contingent in rip-off.
Korey Brinkman, Preferential Agent-in-Expense of FHFA-OIG’s Main Void, detailed that Hanes’s activities comprised a major offense of trust fund, eliciting calculated losses to bank visitors and also adding to its injury.
Jon Ellwanger, one more remarkable rep, added that the sentencing sends out a tenacious post that such execs who conferring in the longevities of municipal monetary campuses will confront justice.
He expressed pride in the participation via federal law enforcement that pioneered to this result and also said plenty of thanks to the U.S. Attorney’s Office for making certain Hanes was realized responsible for his scoundrel offenses.
