Crystal Lake man convicted in $8M Ponzi scheme wants to take back plea to defrauding American Legion group



Alan J. Hanke of Crystal Lake

A Crystal Lake man due to be sentenced next week in connection with an $8 million Ponzi scheme is trying to take back a guilty plea in which he admitted to defrauding a local veterans’ organization.

Alan J. Hanke, 61, pleaded guilty in McHenry County court July 24 to using a credit or debit card with the intent to defraud, a Class 4 felony. The charge stems from accusations Hanke stole money from the McHenry-based Sons of the American Legion Post 491.

But in a motion to withdraw his guilty plea filed Aug. 21, Hanke claims that the plea was entered “under a misapprehension of the law … (and) the facts” and he now wants his case heard by a jury.

A new lawyer representing Hanke wrote in the court filing that Hanke’s previous attorney “forced and coerced” him into the plea deal.

In Hanke’s plea — which he now seeks to reverse — he admitted to using the Legion’s debit card fraudulently between January 2023 and March 2024, while he was a commander for the post, according to court records.

Authorities said Hanke used the card to make cash withdrawals and pay for meals, make retail purchases and to pay for boat rental in Florida.

In exchange for Hanke’s plea, a charge of theft of property with a value between $10,000 and $100,000 was dismissed.

Arguments on the motion to withdraw the guilty plea are set for Sept. 23, three days before Hanke is due to be sentenced.

That investigation into the Legion case was ongoing in June 2024, when 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. Attorneys Office.

Hanke is scheduled to appear in a New York courtroom for sentencing on his federal case Sept. 4. He faces five years in prison.

He was arrested on the federal charges in January 2024 in Cape Canaveral, Florida, as he was boarding an international cruise, authorities said.

· Shaw Media reporter Michelle Meyer contributed to this report.

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