Ex-bank CEO gets 24 years after falling for crypto scam, causing bank collapse
Shan Hanes, a former bank CEO, was sentenced to over 24 years for embezzling $47 million linked to a cryptocurrency scam, causing Heartland Tri-State Bank's collapse and significant investor losses.
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A former bank CEO, Shan Hanes, was sentenced to over 24 years in prison for embezzling $47 million after falling victim to a cryptocurrency scam. Hanes, 53, directed bank employees to transfer funds to a fraudulent crypto wallet as part of a "pig butchering" scheme, despite warnings from others about the scam. Initially targeted in late 2022, he lost his own money and resorted to stealing from a local church, an investor club, and his daughter's college fund before misappropriating bank funds. His actions led to the collapse of Heartland Tri-State Bank in Kansas, resulting in significant losses for the bank and its customers. The Federal Deposit Insurance Corporation (FDIC) absorbed the losses, which included $9 million for bank investors. Hanes pleaded guilty to embezzlement, and while he faced a maximum of 30 years, the judge imposed a sentence longer than prosecutors had requested. Victims of the scam are still uncertain about recovering their losses, with some losing up to 80% of their retirement savings. The case highlights the growing prevalence of cryptocurrency scams and the need for vigilance against such fraudulent schemes.
- Shan Hanes was sentenced to over 24 years for embezzling $47 million due to a crypto scam.
- His actions caused the collapse of Heartland Tri-State Bank, leading to significant losses for investors and customers.
- Hanes ignored multiple warnings about the scam and continued to direct bank funds to scammers.
- The FDIC absorbed the losses, but victims may never fully recover their funds.
- The case underscores the increasing risk of cryptocurrency scams and the importance of awareness.
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Crypto 'pig butchering' scam wrecks bank, sends ex-CEO to prison for 24 years
Shan Hanes, former CEO of Heartland Tri-State Bank, was sentenced to over 24 years for embezzling $47 million, leading to the bank's collapse and significant financial losses for victims.
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16 commentsEven if, for example, you find a loophole that allows you to make 100% guaranteed money, the deposits of the bank belong to the bank, they are not the personal funds of the CEO.
Like, putting money in treasuries is basically 100% safe. It's fine for the bank to put the money in treasuries and profit. It's highly illegal for the bank CEO to take 20 million from the bank, use it as personal funds, buy personal treasuries, and then put the money back.
The title makes it sound like the problem was that he was an idiot and fell for a scam. The true problem was that he misappropriated bank funds in the process of doing so... and if there's any one person you should expect to understand that line, it would be the CEO of a company (or I guess CFO if you have to pick one, but if you pick two it's CFO and CEO)
> Right now, it's unclear how or when victims will be repaid for losses. Broomes ordered "that restitution be finalized at a separate hearing within the next 90 days," the US Attorney's Office said. Many victims will never fully recoup losses to their life savings and retirement funds
Can someone explain how are these two statements compatible?
Maybe it’s just me, but I was thinking he did it by accident.
Who asks their neighbors for $12 million? The dude was out of his mind. 24 years seems long but at the same time somewhat deserved given his role and the amount of damage his sheer stupidity inflicted.
Thank goodness for the FDIC here. A win for "big government."
How's this work? Aren't the bank's losses essentially people's deposits? Where'd the insurance money go then, or has it simply not yet been paid out?
that's gold medal scamming right there. Almost unbelievable
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Crypto 'pig butchering' scam wrecks bank, sends ex-CEO to prison for 24 years
Shan Hanes, former CEO of Heartland Tri-State Bank, was sentenced to over 24 years for embezzling $47 million, leading to the bank's collapse and significant financial losses for victims.
Dad hacks database to fake death and avoid child support pay
Jesse Kipf was sentenced to 81 months for hacking the Hawaii Death Registry to fake his death and evade over $100,000 in child support, causing nearly $196,000 in damages.
Dad hacks database to fake death and avoid child support pay
Jesse Kipf was sentenced to 81 months in prison for hacking a state database to falsely register his death to evade over $100,000 in child support, causing nearly $196,000 in damages.