WICHITA, Kan. – A Kansas man pleaded guilty Thursday to using his position as a bank executive to embezzle millions of dollars, causing the bank to collapse and leaving investors with a complete loss of their money, according to federal prosecutors.
Shan Haynes, 52, of Elkhart, pleaded guilty to one count of embezzlement by a bank employee, according to court documents.
Haines was previously CEO of Heartland Tri-State Bank (HTSB) of Elkhart, Kansas. Between May 2023 and July 2023, Haines transferred $47.1 million of Heartland's funds to cryptocurrency wallets in 10 separate transactions. The funds were transferred to multiple cryptocurrency accounts controlled by unidentified third parties during the period when HTSB was insured by the Federal Deposit Insurance Corporation.
“Shan Haines is a liar and a skilled schemer who caused the collapse of Heartland Tri-State Bank. Haines orchestrated a scheme to cover his tracks regarding the bank's losses while squandering tens of millions of dollars in cryptocurrency,” said U.S. Attorney Kate E. Brubacher.
“While many of the victims will never be able to fully recover their lost life savings and retirement funds, we at the Department of Justice at least expect that Mr. Haines will be held criminally responsible for his actions.”
“Shan Haines used his position as a bank executive to commit fraud and embezzle funds that ultimately led to the failure of Tri-State Bank,” said John Ellwanger, Special Agent in Charge, Western Region, Office of Inspector General, Federal Reserve Board and Consumer Financial Protection Bureau. “Today's announcement demonstrates our determination to hold to justice bank executives who engage in illegal conduct that undermines the public trust.”
Haynes is scheduled to be sentenced on August 8 and faces up to 30 years in prison.
