For embezzling $47 million in a bitcoin fraud scheme, a former US bank CEO was given a term of more than 24 years in federal prison. Shan Hanes, the former CEO of Heartland Tri-State Bank, is said to have fallen for a "pig butchering" hoax in which he was told to buy cryptocurrency "to unlock the supposed returns on his investments," which he never got, according to CNBC. Heartland Tri-State Bank in Elkhart, one of just five US banks to fail in 2023, collapsed and was taken over by the Federal Deposit Insurance Corporation (FDIC) as a result of a sequence of wire transactions that the 53-year-old masterminded over the course of just eight weeks last year.
Scams involving the slaughtering of pigs have increased in frequency in recent years. Typically, this fraud entails the con artist locating and getting in touch with the victim via social media, messaging apps, or dating apps. After that, they make an effort to get to know their prey before finally tricking them into making a number of cryptocurrency investments.
CNBC claims that Mr. Hanes used bank funds to conduct a number of wire transfers in May and June of 2023. In addition, he embezzled funds from his daughter's college savings account, an investing club, and a nearby church. He was allegedly tricked into purchasing cryptocurrencies by the con artists, who said they need further money in order to unlock the return on his investments.
Following his guilty plea to one count of embezzlement by a bank official in May, Mr. Hanes was sentenced to 24 years in prison by US District Judge John Broomes last week. This is 29 months longer than what the prosecution had asked for.
US Attorney Kate E. Brubacher stated in a statement that "Hanes' greed knew no bounds." He violated federal law, his relationships with others, and his professional responsibilities. The lawyer said, "Shan Hanes not only deceived Heartland Bank and its investors, but his illicit schemes also threatened public trust in financial institutions."
In a separate statement, Mr. Hanes' longstanding neighbor to the north, Brian Mitchell, described the former CEO's behavior as "pure evil" at the sentencing. Additionally, he said that Mr. Hanes did not exhibit any regret for his acts at the sentence.
The site claims that Mr. Hanes started thieving in late 2022 after becoming a target of a pig-butchering plot. After talking with the fraudsters on Whats App—whose names are still a mystery—he began initiating the wire transfers. He first purchased cryptocurrency with his own money, but at the beginning of 2023, he stole $10,000 from the Santa Fe Investment Club and $40,000 from Elkhart Church of Christ. He then utilized roughly $1 million in Elkhart Financial Corporation shares and $60,000 that had been misappropriated from a daughter's education fund. He then started sending money from Heartland Tri-State Bank to accounts held by con artists in May 2023.
Mr. Hanes was eventually let go, and the FDIC took over the bank after it was completely destroyed. The 53-year-old was accused in February of last year and was under house arrest until last week when he was sentenced.
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