Heartland Tri-State Bank in Kansas failed after CEO Shan Hanes caused $47 million in wire transfers to be sent to scammers running a pig butchering scheme.
The former CEO of a small Kansas bank was sentenced to more than 24 years in prison for looting the bank of $47 million.
Feeling out of the loop? We'll catch you up on the Chicago news you need to know. Sign up for the weekly "Shan was facing the judge, and he just looked over his left shoulder for a second, and didn't make eye contact, and said, 'Sorry,'"Mitchell recalled, describing the scene in the courtroom.But Hanes had a look of"absolute shock" on his face when Broomes imposed the stiff sentence and ordered the former bank chief taken into custody immediately, Mitchell said.
Hanes, who had served on the board of the American Bankers Association, and been chairman of the Kansas Bankers Association, in December 2022 began making transactions to buy cryptocurrency, which"appeared to be precipitated by communication with an unidentified co-conspirator on the electronic messaging app 'WhatsApp,'"prosecutors wrote in a court filing.
In May 2023, he began to make wire transfers from Heartland Tri-State Bank to accounts controlled by scammers, at first with a $5,000 transfer. "We believe that the CEO's dominant role in the bank and prominent role in the community contributed to a reluctance on the part of Heartland employees to question or report the alleged fraudulent activities earlier," that report said.
But when Mitchell showed up at Heartland Tri-State to meet Hanes, before the bank had officially opened to customers that morning, the CEO told him something much different — and stranger. "I told him, 'You're in a scam, dude. You're in a scam,'"Mitchell said."I stopped him and said, 'Is this bank money you're playing with?' And he said, 'No, Brian.'"
Shareholders were wiped out, but depositors did not lose any money, as Dream First Bank, National Association, of Syracuse, Kansas, assumed all deposits.
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