Criminal’s Story #7 – Shan Hanes

Crime Type: Pig Butchering Scam / Cryptocurrency Scam / Bank Fraud

Crime Country: USA

This is a true crime story from the actual criminal’s story as obtained from official and media sources, enhanced by the SCARS Institute Editorial Team. We utilized the SCARS Institute’s AI ‘Jane’ to dive deeper and delve into the minds of these criminals, scammers, and fraudsters, crafting their real stories to reveal their potential motivations and methods. Understanding these perpetrators helps us combat and disrupt crime/scams/fraud more effectively, empowering us with the insights needed to protect others.

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A Criminal’s Story

I Gambled It All on a Lie: How I Lost $47 Million in a Pig Butchering Scam

I’m Shan Hanes, a 53-year-old former bank CEO from Elkhart, Kansas, and I’m sitting here with a heavy heart, my voice steady but laced with regret as I confess how I fell for a pig butchering scam, embezzling $47 million from my own bank, a local church, and an investment club, all to chase a cryptocurrency dream that turned out to be a devastating lie. I destroyed Heartland Tri-State Bank, ruined lives, and now I face over 24 years in prison, my mind replaying every foolish step I took, every moment I ignored the warnings, driven by a greed I couldn’t control.

It all started in December 2022, a time when I thought I had everything under control. I lived in a comfortable house in Elkhart with my wife, a schoolteacher, and our three daughters, my days filled with the responsibilities of running Heartland Tri-State Bank, a small community institution I had led for years. I had served on the board of the American Bankers Association and even chaired the Kansas Bankers Association, my reputation as a trusted financial leader solid in our tight-knit town. But beneath my polished exterior, I craved more, my mind restless with the idea of striking it rich, of securing a legacy for my family beyond what banking could offer. I started chatting with someone on WhatsApp, a person I never met, their messages promising wealth through cryptocurrency investments, my curiosity piqued as I imagined the millions I could make.

I began with my own money, dipping into my personal savings to buy cryptocurrency, my fingers typing out transactions as I sent funds to the wallet addresses they provided, my heart racing with the thrill of each investment. They showed me fake returns, my screen displaying numbers that made it look like my money was growing, their messages full of encouragement as they urged me to invest more. I believed them, my mind convinced I was on the verge of a financial breakthrough, my greed blinding me to the red flags. By early 2023, my personal funds ran dry, and I turned to other sources, my desperation growing as I chased the supposed returns they promised, my actions spiraling out of control.

I stole $40,000 from the Elkhart Church of Christ, a place where I had worshipped for years, my hands steady as I accessed their accounts, my conscience quiet as I told myself I’d pay it back once my investments paid off. I took $10,000 from the Santa Fe Investment Club, a group of local folks who trusted me with their savings, my fingers typing out the transfer as I ignored the guilt creeping in, my mind focused on the millions I believed were waiting for me. I even drained my daughter’s college savings account, my heart aching as I sent the money, but my greed whispering that this was for her future, that I’d make it all back and more.

By May 2023, I shifted my focus to the bank, my position as CEO giving me the power I needed to pull off the biggest theft of all. I initiated a series of wire transfers, my voice firm as I directed employees to send funds to cryptocurrency wallets controlled by the scammers, my mind racing with the promise of unlocking my supposed returns. I sent $47.1 million in 11 wire transfers over eight weeks, each one larger than the last, my hands steady as I bypassed the bank’s daily limit of $5 million, my instructions clear as I pushed through transfers of $10 million and more. I sometimes did the transfers myself, my fingers typing out the orders, my screen confirming each transaction as the money left Heartland Tri-State Bank and disappeared into the scammers’ accounts.

I targeted the bank itself, my own institution, knowing its reserves could cover the massive sums I needed, my mind convinced I’d recover the money once the scammers “unfroze” my investments. I also targeted the church and investment club, people who trusted me as a pillar of the community, their faith in me a tool I used without hesitation, my greed outweighing any sense of loyalty or duty. I didn’t think about the consequences, my mind too caught up in the promise of wealth, the allure of millions I believed were just one more transfer away, my actions a desperate gamble I thought I could win.

The scammers kept me on the hook, their messages a mix of encouragement and pressure, my phone buzzing with demands for more money to “secure” or “guarantee” my funds, their tactics a textbook pig butchering scam I was too blind to see. They convinced me to invest more, promising larger returns, my mind clinging to the fake profits they showed me, my desperation growing with each new demand. I never realized any profit, my investments a sham, my money lost to unidentified conspirators in Hong Kong, my dreams of wealth vanishing as the scam unraveled.

I made one last desperate move in July 2023, calling a wealthy client named Brian Mitchell at 7:40 a.m., my voice trembling as I told him I needed his help, that he was the only one who could save me. I met him at the bank before it opened, my hands shaking as I asked to borrow $12 million, promising to pay him back with $1 million in interest in just ten days, my mind grasping at straws as I tried to recover what I had lost. He agreed, my relief temporary as I wired the money to the scammers, my screen confirming the $12 million transfer, my last hope fading as I realized the truth too late.

I lost everything, my actions leading to the collapse of Heartland Tri-State Bank, one of only five U.S. banks to fail in 2023, my reputation as a trusted leader destroyed as the FDIC took over, absorbing a $47.1 million loss. Investors lost $9 million, the church and investment club were devastated, and my daughter’s college fund was gone, my family’s future shattered by my greed. I face the consequences now, my world crumbling as I plead guilty to embezzlement by a bank officer, my mind a storm of regret and shame, my freedom gone as I serve a 24-year sentence, 293 months behind bars. I wanted a better life for my family, but all I found was a $47 million scam that cost me everything, leaving me to face the fallout of my crime.

Source:  https://frankonfraud.com/pig-butchered-bank-ceo-is-guilty/  and  https://www.justice.gov/usao-ks/pr/former-ceo-failed-bank-sentenced-prison

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SCARS Institute Notes:

Legal Disclaimer: The above narrative represents an interpretation and extrapolation based on all available information about the case. Achieving 100% factual accuracy remains impossible due to the inclusion of supposition and fictionalization to create a complete story and monologue. We aim to present a coherent account of the criminal’s perspective solely for entertainment purposes. We derive no income from this endeavor, offering it purely in the public interest. The criminal did not participate in this process.

Fictionalized True Crime Disclaimer: This story offers a dramatized account inspired by real events, crafted to explore the criminal’s perspective for entertainment purposes. We base the narrative on publicly available information, supplemented with fictional elements to create a cohesive storyline, and do not claim complete factual accuracy. The characters, dialogue, and specific motivations reflect artistic interpretation and do not represent the actual thoughts or actions of the individuals involved. We intend this work to raise awareness about the dangers of financial fraud, and we derive no profit from its publication, presenting it solely in the public interest. The depicted individuals did not contribute to or endorse this narrative.