Former Kansas Banker Charged with Stealing Millions in Cryptocurrency Scheme
Date: 2024-08-20 Author: Oliver Abernathy Categories: IN WORLD
Haines, an Elkhart resident, pleaded guilty to one count of embezzlement involving tens of millions of dollars in cryptocurrency. The scheme reportedly wiped out the bank and caused investors to lose all of their money.
The U.S. Attorney’s Office for the District of Kansas sentenced Haines to 24 years in prison for using his former position to commit a crime.
The scheme was dubbed “pig butchering,” according to court documents. During the scheme, Haynes made 11 outgoing wire transfers of Heartland funds between May and July 2023 totaling $47.1 million.
The funds were transferred to multiple cryptocurrency wallets controlled by unknown third parties. Haynes’ attempt to gain financial advantage by embezzling funds from the bank led to the collapse of Heartland and a $9 million loss to investors.
U.S. Attorney Kate E. Brubacher emphasized that this decision demonstrates that the Justice Department will hold accountable those who abuse trust for their own gain.
“Not only did Shan Haynes betray Heartland Bank and its investors, but his illegal schemes undermined trust in financial institutions,” she added.
Additionally, Corey Brinkman, Special Agent in Charge of the Central Region of the Federal Housing Finance Agency's Office of Inspector General (FHFA-OIG), assured that his agency will continue to "vigorously investigate criminal fraud offenses."
According to Interpol's Global Financial Fraud Report released earlier this year, cryptocurrency "pig slaughter" schemes are rapidly growing.
Additionally, according to the FBI's Internet Crime Report, investment fraud losses reached record amounts last year. Some estimates suggest that pig slaughter schemes have generated a whopping $75 billion from the beginning of 2020 through February of this year.
