Piggy Banker

A Bank CEO robs his own bank while crypto scammers rob him

“It's morally wrong to allow a sucker to keep his money.” – W.C. Fields

This has to be history’s dumbest bank failure: The CEO of Heartland Tri-State Bank in Elkhart, Kan., embezzled more than $47 million only to turn his loot over to crypto crooks.

The small-town bank subsequently failed in July 2023, and on Monday a federal judge sentenced Shan Hanes, 53, to more than 24 years in prison after he pled guilty to embezzlement.

Bankers are supposed to be on high alert for hustles, but Hanes fell right into one. Inexplicably, he landed in a pig-butchering scam, which involves enticing victims to make increasing contributions by appealing to their greed until they are finally slaughtered.

“Hanes’ greed knew no bounds,” said U.S. Attorney Kate E. Brubacher.

Even his own lawyer called him a pig, but the remark didn’t reduce his federal prison sentence of 293 months.

"Mr. Hanes made some very bad choices after being caught up in an extremely well-run cryptocurrency scam,” defense attorney John Stang wrote in a sentencing memorandum. “He was the pig that was butchered.”

They say anyone can be a fraud victim, but not just anyone can loot a bank while they’re being hoodwinked. Hanes’ fraud smacks of such exceptional greed, desperation and stupidity, it’s difficult to imagine him as someone who could run a poker game, let alone a bank.

(Photo Credit: Morgan County, Kan., jail.)

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