Former Bank CEO Banned After $47M Crypto Embezzlement Scheme
Shan Hanes, ex-CEO of Heartland Tri-State Bank, is permanently barred from banking following his involvement in a cryptocurrency scam that led to the bank's collapse.
- The Federal Reserve has prohibited Shan Hanes, former CEO of Heartland Tri-State Bank, from participating in the banking industry after his conviction for embezzlement.
- Hanes embezzled $47.1 million of bank funds between May and July 2023, transferring the money to cryptocurrency accounts controlled by scammers in a 'pig butchering' scheme.
- The collapse of Heartland Tri-State Bank in July 2023 resulted in a $47 million loss to the FDIC and additional $9 million in losses to shareholders.
- Hanes pleaded guilty to embezzlement, was sentenced to nearly 24.5 years in prison, and agreed to pay $60.5 million in restitution.
- The scam exploited Hanes' position of trust, with federal authorities emphasizing the severe damage caused to the bank's customers, investors, and the broader financial system.
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