The former CEO of Heartland Tri-State Bank, Shan Hanes, has been sentenced to over 24 years in prison for embezzling $47 million from the bank. Federal prosecutors revealed that Hanes transferred these funds to cryptocurrency wallets controlled by scammers in a fraudulent scheme dubbed “pig butchering,” which preyed on his greed.
This massive embezzlement, executed through a series of wire transfers over just eight weeks last year, resulted in the collapse of Heartland Tri-State Bank in Elkhart, Kansas, marking it as one of only five U.S. banks that failed in 2023.
Hanes, 53, also misappropriated funds from a local church, an investment club, and even his daughter’s college savings account, claiming he needed to invest in cryptocurrency to unlock promised returns. Ultimately, he never saw any profit and lost all the money he embezzled.
U.S. District Judge John Broomes sentenced Hanes to 293 months in prison—29 months longer than the prosecution’s recommendation—after he pleaded guilty to a count of embezzlement by a bank officer.
During the sentencing hearing, Brian Mitchell, a long-time neighbor of Hanes, described his actions as “pure evil,” highlighting the significant impact on the local community.