Former Kansas Bank CEO Charged With Embezzling Funds, Stealing From A Church To Buy Crypto
Shan Hanes, the former CEO of Kansas-based Heartland Tri-State Bank, has been charged with embezzling a staggering $47.1 million. The funds, siphoned from the bank’s reserves, were allegedly used to purchase cryptocurrency.
This large-scale embezzlement led to the bank’s closure in July, which was then reported to be due to a scam that the bank “fell victim to.” The closure left the small community of Elkhart, Kansas, in shock. The filing revealed that Hanes also embezzled money from a church in the community where he occasionally preached, as well as a local investment club.
The unraveling of Hanes’ alleged embezzlement began when Brian Mitchell, a local businessman and bank client, grew suspicious after Hanes attempted to borrow $12 million from him to pull his money out of a crypto investment.
Hanes, desperate, promised he would pay Mitchell back in 10 days and offered $1 million in interest. He said that someone was helping him invest in crypto, and there was a problem with the wire payments and that he needed to put more money in. Mitchell said he asked if Hanes used the bank’s money, and Hanes said that it wasn’t.
A week later, after Mitchell learned from a bank employee that Hanes had wired the $12 million, he went to one of the bank’s directors and told him about his concerns. The director then reached out to regulators. Shortly after, the bank was shut after it was declared insolvent by the Kansas Office of the State Bank Commissioner.
Mitchell believes that Hanes himself was a victim of a scheme called “pig-butchering,” where victims are progressively lured into parting with more money like they are being fattened for the kill (in this case, the steal).
The filing alleges that Hanes made 11 unauthorized wire transfers from May 30 to July 7, amounting to a total of $47.1 million. The loss of this amount led to the closure of the bank. FDIC, which was appointed receiver, did not comment on the charges according to Bloomberg.
Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
