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Bank CEO Embezzlement Scheme Ends in Relief for Victims
Dozens of victims in Kansas erupted in tears of joy as they learned that federal authorities had recovered the money stolen from them by former bank CEO Shan Hanes.
Hanes was sentenced to 24 years in August for embezzling $47 million from customer accounts. The stolen funds were wired to cryptocurrency accounts controlled by scammers.
While the Federal Deposit Insurance Corp. (FDIC) insured the deposits of customers, 30 shareholders of Hanes’ bank lost $8.3 million in investments.
However, on Monday, federal Judge John W. Broomes announced that the FBI had recovered the stolen funds from a cryptocurrency account in the Cayman Islands. The shareholders will be paid back in full.
One victim, Margaret Grice, had expected to receive only $1,000. Instead, she learned that she would recover her entire 401(k) of almost $250,000.
Hanes, who fell victim to a “pig butchering” cryptocurrency scam, apologized for his actions. However, prosecutors argued that he crossed a line by taking customer funds.
Hanes’ prominent standing in his community made it easier for him to commit the embezzlement. He is unlikely to be able to repay the $47.1 million still owed to the FDIC when he is released from prison.