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U.S. Bank President Lured Into Pig Butchering Scam
Victim Embezzled Almost $50 Million
Author:
• SCARS Editorial Team – Society of Citizens Against Relationship Scams Inc.
About This Article
The CEO of a Kansas bank was arrested for allegedly embezzling $50 million to participate in a “Pig Butchering” crypto scam, where victims are manipulated into investing in fake schemes.
This incident, causing the bank to fail, highlights the rising threat of investment fraud, which the FBI reports increased 183% from 2021 to 2022. Kansas bank commissioner David Herndon urges caution, advising against clicking unknown links or replying to suspicious emails. This case underscores the importance of investor education and awareness regarding crypto scams and other forms of investment fraud.
Kansas Bank CEO Shan Hanes Arrested in “Pig Butchering” Crypto Scam, Raising Concerns about Investment Fraud Victims
The arrest of Shan Hanes, former CEO of the Heartland Tri-State Bank in Elkhart, Kansas, for allegedly embezzling $50 million to participate in a “Pig Butchering” cryptocurrency scam has sent shockwaves through the state’s banking system and highlighted the growing threat of investment fraud.
Hanes is accused of intentionally defrauding the bank by willfully misapplying and embezzling approximately $47.1 million. He allegedly did this by initiating a series of wire transfers between May 2023 and July 2023 to purchase cryptocurrency for his personal benefit.
Kansas State Bank Commissioner David Herndon expressed surprise and disappointment at the incident, stating:
“I was surprised. I was shocked. I was disappointed. All of those feelings. How could this happen? Why did it happen?”
“Pig Butchering” schemes involve scammers building relationships with victims, gaining their trust, and ultimately convincing them to invest in fake or manipulated cryptocurrencies, leading to significant financial losses.
According to Commissioner Herndon:
“A cryptocurrency scheme that the FBI is now referring to as ‘Pig Butchering'” “…It’s not just Kansas that’s seeing this problem. According to the FBI, it’s increasing investment fraud. From ’21 to ’22, it increased 183%. And it’s now into the billions of dollars that’s, that’s being stolen.”
Court documents allege Hanes stole the embezzled funds from a local church and an investment club.
While this case is extreme, Commissioner Herndon warns of the rising prevalence of crypto scams and urges individuals and businesses to remain vigilant.
“Nobody is immune, whether it’s an individual or business, or a municipality. So pay attention. Don’t click on unknown links or reply to emails that you’re not familiar with or not aware of. And if you do find or feel that you’re a victim, call law enforcement.”
Additional Notes:
- The Heartland Tri-State Bank shut down in August 2023 following the alleged embezzlement.
- Hanes faces up to 30 years in prison and a $1 million fine if convicted.
- This incident emphasizes the importance of investor education and awareness regarding crypto scams and other forms of investment fraud.
According to the United States Attorney’s Office
Former Kansas bank executive charged with embezzling $47 million
The U.S. Attorney’s Office – District of Kansas has charged a Kansas man by information with embezzling millions of dollars from his former employer. An information is an accusation exhibited against a person for a criminal offense without an indictment from a grand jury.
According to court documents, Shan Hanes, 52, of Elkhart is charged with one count of bank embezzlement.
Hanes previously served as the chief executive officer of Heartland Tri-State based in Elkhart. Hanes is accused of intentionally defrauding the bank by willfully misapplying and embezzling approximately $47.1 million. He allegedly did this by initiating a series of wire transfers between May 2023 and July 2023 to purchase cryptocurrency for his personal benefit.
The defendant is scheduled for his initial court appearance February 28, 2024, before U.S. Magistrate Judge Gwynne E. Birzer of the U.S. District Court for the District of Kansas.
If convicted, Hanes faces a maximum penalty 30 years in prison.
The Federal Bureau of Investigation (FBI), Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG), Federal Reserve Board – Office of Inspector General (FRB-OIG), and Federal Housing Finance Agency – Office of Inspector General ((FHFA-OIG) are investigating the case.
Assistant U.S. Attorney Aaron Smith is prosecuting the case.
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More Related Information:
- District of Kansas | Former Kansas bank executive charged with embezzling $47 million | United States Department of Justice
- Kansas Bank Commissioner responds to massive Elkhart crypto scam – KAKE
- Evolution In Pig Butchering Scams – A Guest Editorial By Brad Gorka (romancescamsnow.com)
- How To Avoid Pig Butchering Scams [VIDEO] (romancescamsnow.com)
- Pig Butchering Scams – A Chinese Perspective (romancescamsnow.com)
- SCARS Webinar: Romance Scams #1 – Pig Butchering Fraud & Military Impersonation Fraud [VIDEO] (romancescamsnow.com)
- Sha Zhu Pan 殺主盤 Pig Butchering Romance/Investment Scams – Overview (romancescamsnow.com)
- The Pig Butchering Scam – The New Romance & Investment Scam Combination Sweeping The World (romancescamsnow.com)
- Pig Butchering Scams In Southeast Asia – 2023 (scamsnow.com)
- Crypto Seizure Breaking News: Major Romance & Pig Butchering Scam Organization Disrupted 2023 (scamsnow.com)
- UNODC Report on Casinos and Cryptocurrency Scams and Money Laundering 2024 (scamsnow.com)
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These articles, about the Psychology of Scams or Victim Psychology – meaning that all humans have psychological or cognitive characteristics in common that can either be exploited or work against us – help us all to understand the unique challenges victims face before, during, and after scams, fraud, or cybercrimes. These sometimes talk about some of the vulnerabilities the scammers exploit. Victims rarely have control of them or are even aware of them, until something like a scam happens, and then they can learn how their mind works and how to overcome these mechanisms.
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Note about Mindfulness: Mindfulness practices have the potential to create psychological distress for some individuals. Please consult a mental health professional or experienced meditation instructor for guidance should you encounter difficulties.
While any self-help techniques outlined herein may be beneficial for scam victims seeking to recover from their experience and move towards recovery, it is important to consult with a qualified mental health professional before initiating any course of action. Each individual’s experience and needs are unique, and what works for one person may not be suitable for another.
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