Kansas Klips
Former Kansas bank CEO going to prison for crypto scheme
WICHITA—A Kansas man, Shan Hanes, 53, of Elkhart, pleaded guilty to one count of embezzlement by a bank office, according to court documents, and was recently sentenced to 293 months in prison for using his former position as chief executive officer (CEO) to embezzle tens of millions of dollars in a cryptocurrency scheme which lead the bank to fail at a complete loss of equity for investors, according to the United StatesAttorney. While the CEO of Heartland Tri-State Bank (HTSB) in Elkhart, Kansas, Hanes initiated eleven outgoing wire transfers between May 2023 and July 2023 totaling $47.1 million of Heartland’s funds to a cryptocurrency wallet in a cryptocurrency scheme referred to as a “pig butchering.” The funds were transferred to multiple cryptocurrency accounts controlled by unidentified third parties during the time HTSB was insured by the Federal Deposit Insurance Corporation (FDIC). The FDIC absorbed the $47.1 million loss. Hanes’ fraudulent actions caused HTSB to fail and the bank investors to lose $9 million. A federal judge ordered that restitution be finalized at a separate hearing within the next 90 days. “Hanes’ greed knew no bounds. He trespassed his professional obligations, his personal relationships, and federal law. Not only did Shan Hanes betray Heartland Bank and its investors, but his illegal schemes also jeopardized confidence in financial institutions,” said U.S. Attorney Kate E. Brubaker. “Today’s sentence is a measure of justice for the victims, and a statement that the U.S. Department of Justice will hold those accountable who violate positions of trust for their own gain.” “Mr. Hanes, as the CEO of Heartland Tri-State Bank, held the trust and confidence of the community of Elkhart, KS, but he violated that trust. He attempted to benefit financially by embezzling funds from the bank. His idea to get rich quick, in all reality, was a pig butchering scheme. His involvement in this scheme ultimately led to the bank’s collapse. His job, the bank’s job, was to protect its customers and identify fraudulent schemes—not to participate in them,” said Special Agent in Charge Stephen Cyrus of the FBI Kansas City Field Office. (Hays Post)
Northwest Kansas man dies after being struck by a semi
KIOWA COUNTY—The Kansas Highway Patrol reported a 2016 International semi driven by Charles D. Cunningham, 67, Pleasant Hope, Kansas, was westbound on U. S. Highway 54 and 10 Avenue in Mullinville. A pedestrian identified as 50-year-old Richard Hubbard of Phillipsburg was walking northbound on 10 Avenue across U.S. Highway 54. The semi struck Hubbard. He was pronounced dead at the scene. Cunningham was not injured. Posted August 21st, 2024 (Hays Post)
KHP involved in fatal crash with SUV in northwest Kansas
SHERIDAN COUNTY—According to the Kansas Highway Patrol, just after 11:00 a.m. on Monday, August 19th, Trooper Ethan Masterson, 27, Oakley, was responding to a fatal accident on KS-23 south of Hoxie when Masteron’s Dodge SUV collided with an SUV at intersection 23. The driver of the second SUV, Gerald D. Rahier, 42, Hoxie, was killed in the accident. A passenger, Arielle C. Lemo, 38, Hoxie, and two children, ages 4 and 5, all suffered severe injuries and were transported to the Sheridan County Health Complex in Hoxie. All four people in the SUV were properly restrained at the time of the accident. The Highway Patrol reported Masterson did have his lights and sirens activated at the time of the accident. He was not injured. The Kansas Highway Patrol Critical Highway Accident Response Team was called to the scene, and this crash is under investigation. (Hays Post)
TMP-Marian student to perform with National FFA Band
HAYS—Preston Mermis, a member of the TMP/Marian FFA Chapter in Hays, will be on stage and in the stoplight during the 2024 National FFA Convention and Expo in Indianapolis, Indiana, in October. Mermis, a junior and the son of Keith and Jennifer Mermis, was selected to play trumpet in the National FFA Band. Mermis submitted an audition tape and was selected to help bring full instrumental balance to the band from a pool of applicants nationwide. The National FFA Band will perform several times during the convention and expo. Mermis will join fellow band members in Indianapolis for rehearsals three days before the event begins. (Hays Post)
