Former Bank CEO Sentenced for Embezzlement

Shan Hanes, the former CEO of Heartland Tri-State Bank in Kansas, has been sentenced to nearly 25 years in federal prison for embezzling $47.1 million through a cryptocurrency scheme known as 'pig butchering.' Hanes's actions between May and July 2023 led to the bank's collapse and a $9 million equity loss for investors. The Federal Deposit Insurance Corporation (FDIC) absorbed the $47.1 million loss. Hanes pleaded guilty to one count of embezzlement by a bank officer, a crime that carries a maximum sentence of 30 years. The fraudulent wire transfers significantly impaired the bank's capital and liquidity, leading to its insolvency. A restitution hearing is scheduled to be held within the next 90 days.