Crystal Lake man convicted in $8M Ponzi scheme admits to defrauding McHenry American Legion
A Crystal Lake man who is awaiting federal sentencing for an $8 million Ponzi scheme pleaded guilty in a McHenry County courtroom to fraudulent use of a debit card belonging to the McHenry American Legion.
Alan J. Hanke, 61, entered a guilty plea Thursday to using a credit or debit card with the intent to defraud. It was a blind plea, meaning he won’t know what the punishment will be until a sentencing hearing that has been scheduled for Sept. 26. Hanke could receive probation or up to three years in prison.
Hanke, who was commander at the McHenry-based Sons of the American Legion Squadron 491, is accused of fraudulently using the legion’s debit card between January 2023 and March 2024, according to court records.
Hanke used the card to make cash withdrawals, pay for meals at restaurants, make purchases and to pay for boat rental in Florida, Assistant State’s Attorney Margaret O’Brien said in court Thursday.
In a letter to the court, members of the legion asked the judge for the maximum sentence.
In June 2024, Hanke pleaded guilty in a federal courtroom in New York to defrauding investors of more than $8 million. He also pleaded guilty to declaring bankruptcy in an attempt to conceal his crimes, according to the U.S. attorney’s office.
Hanke is set to appear in a New York courtroom Sept. 4 for sentencing on his federal case, for which prosecutors are seeking five years in prison.