CEO who bankrupted Kansas Bank sentenced to 24 years

WICHITA, Kan. (KSNW) — The former CEO of a Kansas bank has been sentenced to over 24 years in prison.

The U.S. Attorney’s Office in Wichita says Shan Hanes, 53, of Elkhart, was sentenced to 293 months (24 years and five months) in prison Monday after pleading guilty in May to one count of embezzlement by a bank officer. Hanes was the CEO of Heartland Tri-State Bank.

Between May 2023 and July 2023, Hanes wired $47.1 million of Heartland’s funds to a cryptocurrency wallet. The wire transfers were part of a “ Pig Butchering ” scam.

The money went into different accounts of unidentified third parties and left the bank insolvent, according to the U.S. Attorney. The state bank commissioner seized the bank, which Dream First Bank in Syracuse later acquired.

The Federal Deposit Insurance Corporation absorbed the $47.1 million loss. Investors in the bank lost $9 million.

“Hanes’ greed knew no bounds. He trespassed his professional obligations, his personal
relationships, and federal law. Not only did Shan Hanes betray Heartland Bank and its investors, but his illegal schemes also jeopardized confidence in financial institutions,” says U.S. Attorney Kate E. Brubacher in a news release. “Today’s sentence is a measure of justice for the victims and a statement that the U.S. Department of Justice will hold those accountable who violate positions of trust for their own gain.”

The case was investigated by the Federal Bureau of Investigation, Federal Deposit Insurance Corporation – Office of Inspector General, Federal Reserve Board – Office of Inspector General,
and Federal Housing Finance Agency – Office of Inspector General. Assistant U.S. Attorney Aaron Smith prosecuted the case.

A federal judge has ordered a restitution hearing within the next 90 days.

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