A Crystal Lake man who pleaded guilty to a multimillion-dollar Ponzi scheme in federal court continues his attempts to push back the start of his 4½-year prison sentence as he is set to start trial for a local case in March.

Alan J. Hanke, 61, pleaded guilty in federal court to defrauding investors out of more than $8 million. He was sentenced in October to 4½ years in prison and ordered to pay more than $8.2 million in restitution. While he’s due to start his prison sentence Friday, his attorney continues to make last-minute efforts to push it to April 17.

Hanke’s attorney requested a delay in the start of his prison sentence because of his upcoming trial in McHenry County court that is set to start March 30 and predicted to last one week, attorney Michael Schneider said in a court document.

“Should Mr. Hanke be in federal custody when his local trial starts, his defense in that case will be prejudiced, the trial would likely be delayed and Mr. Hanke would have to spend time in custody outside of the Federal Medical Center where he will serve his sentence,” Schneider said in the document.

Schneider also argued that traveling from federal custody in Minnesota to the McHenry County jail may hinder Hanke’s ability to receive “necessary medical supervision and treatment.” On both federal and local levels, Hanke has delayed his cases because of his ongoing health issues, some related to radiation treatment he received after he was diagnosed with cancer.

U.S. Attorney Joseph Nocella in New York federal court, where Hanke was convicted, objected to the request for a delay, noting Hanke already has been able to have his sentencing postponed five times due to his ongoing health issues.

The objection included a photo of Hanke at the American Place Casino in Waukegan earlier this month, where Nocella contended Hanke may have been “whittling away whatever remains of his victims’ money.”

“To date, the defendant has not made a single payment toward restitution or forfeiture,” Nocella said in the court document. “Instead, while awaiting his surrender date, the defendant has been observed gambling at a casino – presumably with money that otherwise could be used to compensate his victims."

Federal Judge Ramon Reyes denied Hanke’s motion Thursday for a delay for him to report to prison. Hanke’s attorney swiftly filed a motion for the judge to reconsider the next day.

Schneider argued that Hanke made a $100 payment on Jan. 2 through the Eastern District of New York’s electronic payment system. Acknowledging the photo of Hanke in the casino, Schneider said Hanke was there to meet his sister, who works at the casino, for lunch.

“On information and belief, the image was captured by a person involved with the complainants in the Illinois criminal case, who have an interest in misrepresenting Mr. Hanke and his actions in furtherance of that prosecution,” Schneider said in the document.

Earlier this month at the McHenry County Courthouse, Hanke succeeded in pushing back his jury trial to the end of March.

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

Hanke had entered the guilty plea in the local case but was allowed to take it back and go to trial instead.

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.

Similarly, when federal authorities charged Hanke with various forms of fraud in 2024, they alleged that “nearly all of the money that the victims invested with Hanke went to the defendant’s personal expenses, including cruises, airfare, hotels, gambling expenses, and a luxury car. Hanke also paid co-conspirators and other investors with money that he wrongfully obtained during the scheme.”

Authorities alleged that between 2018 and 2021, Hanke persuaded numerous investors to put money into his hands, promising “high returns within short periods of time,” and falsely assuring them they were insured against losses.