Kansas bank CEO sentenced 24 years in prison on “pig butchering scam”

Crypto scam: 

Hanes made 11 wire transfers using the bank's stolen funds. He didn't just stop there; he also embezzled money from a local church, an investment club, and even his own daughter’s college savings account.

 

A former Kansas bank CEO, Shan Hanes, has been sentenced to 24 years in prison after falling victim to a pig butchering scam, leading to the collapse of Heartland Tri-State Bank. Hanes, who was in charge of the small bank, embezzled $47.1 million, and transferred the money to scammers' cryptocurrency accounts. His actions ultimately led to the collapse of the small bank, leaving many people and organizations devastated.

The scam that Hanes fell for involved tricking him into purchasing cryptocurrency under the false promise of unlocking large returns on his investments. However, he never received any returns. Pig butchering scams, like the one Hanes was caught in, have become increasingly common in recent years. These scams typically involve a scammer building a relationship with a victim, often through online platforms, and then convincing them to make a series of cryptocurrency investments. Victims worldwide have lost over $75 billion to these scams.

During May to June of 2023, Hanes made 11 wire transfers using the bank's stolen funds. He didn't just stop there; he also embezzled money from a local church, an investment club, and even his own daughter’s college savings account. The Heartland Tri-State Bank, which was insured by the FDIC, was one of the five banks to shut down in 2023 due to this scandal.

US Attorney Kate E. Brubacher emphasized the gravity of Hanes' actions, stating that his greed led him to violate professional duties, personal relationships, and federal law. By betraying Heartland Bank and its investors, Hanes not only caused financial loss but also undermined public confidence in financial institutions.