A courtroom of relief: FBI recovers funds for victims of scammed banker

Category: Top Stories

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. embezzle / ɛmˈbɛz əl / (v.) – to steal or take money that has been entrusted to one’s care by a company or an organization
    Example:

    The company’s accountant embezzled funds and left the country to hide from authorities.


  2. jettison / ˈdʒɛt ə sən / (v.) – to dispose or throw away something
    Example:

    Old products were jettisoned as the company offered new products.


  3. the ether / ði ˈi θər / (n.) – the air or the sky
    Example:

    Her hopes for a better future disappeared into the ether after the failed project.


  4. bequest / bɪˈkwɛst / (n.) – the money or property of a person that is arranged and promised to be given to another person
    Example:

    The father’s bequests were divided among his five children.


  5. deceitful / dɪˈsit fəl / (adj.) – hiding the truth, dishonest
    Example:

    His deceitful actions destroyed his relationship with his friends.


Article

Read the text below.

Sobs of relief broke out in a federal courtroom in Kansas as dozens of people whose life savings had been embezzled by a bank CEO learned that federal law enforcement had recovered their money.


“I just can’t describe the weight lifted off of us,” said Bart Camilli, 70, who with his wife Cleo had just learned they’d recover close to $450,000—money Bart began saving at 18 when he bought his first individual retirement account. “It’s life-changing.”


In August, former Kansas bank CEO Shan Hanes was sentenced to 24 years after stealing $47 million from customer accounts and wiring the money to cryptocurrency accounts run by scammers. Prosecutors said Hanes also stole $40,000 from his church, $10,000 from an investment club and $60,000 from his daughter’s college fund and lost $1.1 million of his own in the scheme. Deposits were “jettisoned into the ether,” said prosecutor Aaron Smith.


Hanes’s Heartland Tri-State Bank, drained of cash, was shut down by federal regulators and sold to another financial institution. Customers’ savings and checking accounts amounting to $47.1 million were insured by the Federal Deposit Insurance Corp., which paid off their losses.


But there were still 30 shareholders of the community-owned rural bank Hanes helped found—including his close family friends and neighbors—who thought they lost $8.3 million in investments: well-planned retirements were upended, funds for long-term eldercare gone, education funds and bequests for children and grandchildren zeroed out.


The shareholders stood to cheer federal Judge John W. Broomes in Wichita after he told them, one at a time, that they’d be paid back in full. The FBI recovered the funds from a cryptocurrency account held by Tether Ltd. in the Cayman Islands.


During an earlier sentencing hearing, these victims had called Hanes a “deceitful cheat and a liar,” and “pure evil.”


Margaret Grice came to court figuring she’d get $1,000 back. Instead, she learned she’d be recovering almost $250,000.


“I’m just really thrilled,” she said. “I can breathe.”


This article was provided by The Associated Press.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • Do you think the victims of Shan Hanes will be able to trust banks again? Why or why not? In your opinion, how is trust built or developed between people and financial institutions? Discuss.
  • Do you have complete trust in banks to protect and manage your money or savings? Why or why not? How does trust affect your financial decisions? What would make you feel safer about putting money in a bank? Discuss.

Discussion B

  • Part of the funds that were recovered were well-planned retirement funds. Why is it important to have a good retirement plan? If you already have a well-planned retirement fund, would you still take the risk of investing it in the hopes of making it even bigger? Why or why not? Discuss.
  • What do you think the victims should do now that their funds or savings will be returned to them? Discuss.