Local contractor fined $11k for deceptive business practices
8 February 2024
ELKHART, Kan. (KSNW) — The former CEO of a now-defunct Kansas bank has been charged with embezzlement.
Shan Hanes was the CEO of Heartland Tri-State Bank in Elkhart up until July of last year when the bank was seized by the Kansas Banking Commission after the bank was found to be insolvent. Dream First Bank in Syracuse has since acquired it.
The U.S. Attorney’s Office has now charged Hanes with one count of Embezzlement by a Bank Officer. Court documents accuse Hanes of diverting money from the bank into cryptocurrency.
They allege that in December 2022, Hanes began purchasing cryptocurrency for himself. However, at the start of 2023, he used funds from a local church and local investment club to purchase cryptocurrency.
Authorities allege that a total of 11 wire transfers to purchase cryptocurrency were made between May and early July, at times with Hanes directing bank employees to make the transfers. Prosecutors say the transferred funds total $47.1 million, leading directly to the bank becoming insolvent.
A conviction of Embezzlement by a Bank Officer carries a maximum sentence of 30 years in prison, forfeiture, and a fine of $1 million.