A Crystal Lake man – already convicted in a separate $8 million Ponzi scheme – was allowed Tuesday to withdraw his guilty plea to defrauding a McHenry veterans’ association.

In her ruling, McHenry County Judge Tiffany Davis cleared the way for Alan J. Hanke, 61, to have his case heard before a jury in January – something he claims he had wanted all along.

Davis explained to Hanke he will be tried on both the original charges. Those include a charge of theft of property with a value between $10,000 and $100,000 – a more serious offense that had been dismissed in July when he entered the guilty plea to using a credit or debit card with the intent to defraud, a Class 4 felony.

In August, Hanke hired a new attorney, Albert Wysocki, who filed a motion to withdraw the guilty plea.

Hanke claimed that when he entered into the plea, he didn’t know he potentially faced up to three years in prison, the motion said.

Hanke was commander at the McHenry-based Sons of the American Legion Squadron 491, giving him access to the funds. He is accused of fraudulently using the legion’s debit card between January 2023 and March 2024, according to court records.

Authorities said Hanke used the card to make cash withdrawals and pay for meals at restaurants, purchases at retail stores and on Amazon and a boat rental in Florida.

Hanke claimed that he entered into the negotiated plea under “misapprehension of the law” and was “coerced” by his former attorney to do so, according to the motion on file in the McHenry County court.

The motion asserted that Hanke’s former attorney did not prepare the case for trial, even though Hanke wanted to go before a jury, and that the attorney threatened to quit the case if he didn’t plead guilty.

Wysocki said in court Tuesday that Hanke has continually denied the accusations that he defrauded the legion. He said Hanke produced a list of “possible witnesses” and “documentation, receipts and ledgers that would have gone to his defense. In this man’s mind, that was his defense,” Wysocki said.

“He knows he didn’t defraud” the legion, Wysocki said.

Wysocki further contended that, following a conference in July with the judge, his former attorney didn’t explain anything to Hanke, who was “as meek as a mouse” before the judge.

Hanke thought he was only pleading guilty to use of a credit card and did not know he could potentially serve time, Wysocki said, saying Hanke’s former attorney told him he would not go to jail and “shushed” him.

Hanke was “intimidated and emotionally traumatized,” Wysocki said.

Assistant State’s Attorney Justin Neubauer rejected Wysocki’s argument and told Davis “none of that happened here.” The transcripts do not show he was “shushed.” Neubauer pointed out that when Davis asked Hanke a series of questions – typical when entering into a plea deal and including whether he was forced, threatened or coerced into entering the guilty plea – Hanke said no.

“He had every single chance to say this was involuntary,” Neubauer said. “He didn’t say that.”

Hanke has “buyer’s remorse,” the prosecutor said.

Neubauer also noted the similar charges Hanke has been convicted of in federal court in New York.

In that case, he was accused of creating an elaborate Ponzi scheme, stealing $8 million from investors and claiming bankruptcy as a way to cover up his crimes, according federal prosecutors.

In June 2024, Hanke pleaded guilty in that case to conspiracy to commit securities fraud, according to a U.S. Attorney’s Office news release.

Sentencing on that case has been postponed multiple times due to Hanke’s ongoing medical issues and is now tentatively set for Oct. 2, federal court records show.

Federal prosecutors said although Hanke assured investors their investments would be insured against losses, Hanke actually used it on personal expenses including cruises, airfare, hotels, gambling expenses and a luxury car.

When arrested, authorities said, Hanke was in Cape Canaveral, Florida, boarding an international cruise. As part of his plea, Hanke also admitted he filed for bankruptcy to conceal the conspiracy. He faces up to five years in prison when sentenced.

In McHenry County court Tuesday, Davis granted Hanke’s motion to withdraw the guilty plea and set Jan. 26 for jury trial. She said though she did accept his plea “as being freely and voluntarily,” he had previously pleaded not guilty and asked for a jury trial.

She said her decision was “discretionary” and that she was not required to allow the plea withdrawal. But “justice would be better served by a trier of fact, by a jury,” and the request was filed in a timely manner, Davis said.