The U.S. Attorney’s Office in Kansas said a former southwest Kansas bank executive has pleaded guilty to using his position to embezzle millions of dollars, causing the bank to fail at a complete loss of equity for investors.
The guilty plea was entered in federal court in Wichita by 52-year-old Shan Hanes of Elkhart to one count of embezzlement by a bank officer.
Hanes was the chief executive officer of Heartland Tri-State Bank in Elkhart. Prosecutors said from May to July of 2023, Hanes conducted a series of ten outgoing wire transfers totaling $47.1 million of Heartland’s funds to a cryptocurrency wallet. The funds were then transferred to a number of cryptocurrency accounts controlled by unidentified third parties.
The U.S. Attorney for Kansas, Kate Brubacher, said Hanes caused the bank to collapse and orchestrated schemes to cover his tracks concerning the losses at the bank. She said many victims will never recoup the losses to their life savings and retirement funds.
Hanes is scheduled to be sentenced on August 8th, and he faces up to 30 years in federal prison.
