A federal judge sentenced former Heartland Tri-State Bank CEO Shan Hanes on Monday to more than 24 years in prison for embezzling millions as part of a cryptocurrency scheme.

The 293-month sentence from U.S. District Judge John Broomes represented the maximum under the guidelines for one count of embezzlement as a bank officer.

Hanes pleaded guilty in May, 10 months after his bank was taken over by the Federal Deposit Insurance Corp. and sold to nearby Dream First Bank after becoming insolvent after Hanes took $47.1 million in bank funds.

The FDIC absorbed the loss, but bank investors lost $9 million.

“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 Kate E. Brubacher, U.S. Attorney for the District of Kansas, in a prepared statement.

“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,” she said.

“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,” said Stephen Cyrus, special agent in charge at the FBI’s Kansas City field office, in a prepared statement.

“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 scams — not to participate in them,” Cyrus said.

Pig butchering schemes involve crypto scammers “fattening” up victims up with a pledge of profitable returns and then “slaughtering” them before making good on their promises.

Hanes, who was charged in February, transferred the funds between May and July 2023 to crypto wallets operated by unidentified individuals. He made 11 transactions between $5,000 and $10.3 million.

Prosecutors had requested Hanes be sentenced to 264 months, or 22 years; and Hanes’ attorney John Stang requested a downward variance on the grounds that his client was a victim, too.

“Falling victim to this scam does not excuse the illegal actions taken by Mr. Hanes in wrongfully taking money from the bank, resulting in the bank’s failure and the loss to the Stockholders,” Stang wrote in his sentencing memo. “However, this is what precipitated those actions.”

“Mr. Hanes is sorry about the loss he caused to the community and specifically the Stockholders of the Elkhart Financial Corporation,” Stang wrote. “These people were his friends, co-workers, and neighbors, and all that he can do at this point is try to pay back the restitution upon his release from prison.”

Hanes did not gain financially from his involvement in the scheme, Stang wrote. Restitution will be finalized at a future hearing.

The former CEO is facing 28 additional charges related to the crypto scheme in Morton County District Court, the Topeka Capital-Journal reported. That case, in which Hanes faces a potential sentence of 86 months, is scheduled for trial in October.