The former CEO of Heartland Tri-State Bank in Elkhart, Kan., which failed in July, has been indicted on charges of embezzling $47.1 million from the bank.
Prosecutors, in U.S. District Court for Kansas, allege that Shan Hanes took the funds out of the $139 million-asset bank and its customers from May 30 through at least July 7 “by causing at least 11 wire transfer financial transactions.” He allegedly used the funds for cryptocurrency investments that eventually crashed.
The Kansas Office of the State Bank Commissioner closed the bank on July 28. The Federal Deposit Insurance Corp. sold most of the bank’s assets and $130 million of deposits to Dream First Bank in Syracuse, Kan.
The FDIC said at the time that the closure would likely cost the Deposit Insurance Fund about $54.2 million.
The offense is punishable by up to 30 years in prison and fines.