Ex-CEO of Heartland Tri-State Bank sentenced to more than 24 years in prison after funneling bank funds into crypto scheme

Between May and July 2023, Hanes transferred $47.1 million in bank funds to the fraudulent scheme. This eventually led to the collapse of the bank, with equity investors losing $9 million and the FDIC footing the bill. “There were people who lost 70, 80 percent of their pension” as a result of investment losses, one community member said.

Hanes had also taken money from a local church, an investment club and his daughter’s college savings. These funds were reportedly used to buy cryptocurrencies after those running the scheme told him they needed more money to “unlock” returns on his investments – a common tactic with these scams.