Former Heartland Tri-State CEO barred from banking industry

The Federal Reserve has barred the former CEO of the failed Heartland Tri-State Bank from future participation in the banking industry.

The Fed’s announcement comes three months after Shan Hanes was sentenced to more than 24 years in prison after pleading guilty in May to a count of embezzlement by a bank officer.

Hanes had been accused of embezzling $47.1 million for personal cryptocurrency purchases, executing 10 wire transfers between May and July 2023. The Fed noted that this behavior led to the bank becoming insolvent and failing in July 2023.

The bank was seized by regulators and sold to Dream First Bank.