FBI recovers embezzled funds for Kansas bank scam victims, ensuring full shareholder reimbursement after Hanes’ cryptocurrency fraud.
In a heartening turn of events, the FBI has recovered funds for victims of a massive scam led by former Kansas bank CEO Shan Hanes. On Monday, dozens of victims gathered in a Wichita courtroom to hear that their embezzled money would be returned. This was a life-changing moment for many, as they feared their savings were lost forever. One of them was Bart Camilli, a 70-year-old man who was informed that he and his wife would get a refund of nearly $450,000 that Hanes stole from them.
Hanes, the former CEO of Heartland Tri-State Bank, was sentenced to 24 years in August for embezzling $47 million. He had invested the stolen funds in cryptocurrencies belonging to fraudsters through the ‘pig butchering’ method. This is where one manipulates a particular individual into believing in him/her and invests in Bitcoins, only to lose the money.
FBI Seizes Stolen Funds from Cryptocurrency in Kansas Scam Victory
Hanes also embezzled money from his church, his daughter’s college fund, and an investment club. Some of the bank’s shareholders never thought they would recover their money again after the federal regulators closed the bank. However, the FBI seized some cash from a cryptocurrency purse belonging to Tether Ltd., registered in the Cayman Islands. This was a big win for the victims, more so for the 30 shareholders who lost $8.3 million. On Monday, they were assured that they would be fully reimbursed.
The judge in this case, John W. Broomes, directed that the victims should be paid first before the FDIC is repaid. The victims welcomed this decision. Another woman, Margaret Grice, had been worried about losing her $250,000 401(k). The choice to restore victims before the FDIC repayment made much difference and brought hope to the people.
Hanes’ actions are not only criminal but also a violation of the expectations placed on him by his community. The prosecutors suggested that his position allowed him to manipulate everyone in his surroundings. Even though Hanes apologized, he was damaging the company and its products. He has been in jail for many years and may be unable to pay the FDIC back. This case demonstrates that the attacks become more diverse, and users should be careful with their savings.
