WICHITA, Kan. (KSNW) — Investors in a Kansas bank that failed after its CEO embezzled millions in a cryptocurrency scheme will see some of that money returned.
The feds were able to seize around $8 million in funds that former CEO Shan Hanes had transferred from Heartland Tri-State to a cryptocurrency wallet. Hanes was sentenced in August to 24 years in prison. He had pleaded guilty earlier in federal court to one count of embezzlement by a bank officer.
“The U.S. Attorney’s Office – District of Kansas thanks the FBI for its diligent investigations that led to the discovery and recovery of over $8 million in stolen funds,” says .S. Attorney Kate E. Brubacher. “Through Hanes’ conviction and prison sentence, the Department of Justice obtained justice for the victims, and now, with this court order, those victims will receive some financial relief.”
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The embezzlement led to the seizure of Tri-State, which was acquired by Dream First Bank based in Syracuse.