A Crystal Lake man who pleaded guilty in federal court to a multimillion-dollar Ponzi scheme started his 4½-year prison sentence Friday after multiple attempts to push it back.

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.

Hanke reported to FMC Rochester in Minnesota, which is described by the Federal Bureau of Prisons as an administrative security federal medical center.

Two weeks ago, his attorney made last-minute efforts to push the start of his sentence to April 17. Hanke’s attorney cited his upcoming trial in McHenry County court, which is set to start March 30 and predicted to last one week, attorney Michael Schneider said in a court document.

That court date, too, was the result of Hanke’s success in pushing back his jury trial.

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.

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.

U.S. Attorney Joseph Nocella in New York federal court, where Hanke was convicted, objected to the request for a delay. 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.”

Federal Judge Ramon Reyes denied Hanke’s motion last week for a delay for him to report to prison. Hanke’s attorney swiftly filed a motion for the judge to reconsider the next day, which was again denied Monday.

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.

The American Legion Post 491 released a statement to Shaw Local saying Schneider’s defense is “false and inaccurate.”

The person who took the photo was a “third party who is not involved in the Illinois case in any capacity” and “personally observed Alan Hanke actively gambling at a blackjack table” at the casino on Jan. 10.

" At no point was anyone associated with the [Sons of the American Legion] matter involved in the taking or staging of the photograph,“ the Legion statement said.

When federal authorities charged Hanke in 2024 with various forms of fraud that they said amounted to an $8 million Ponzi scheme, 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.

A recent court filing in the federal case included a reference to Hanke having paid $100 toward his $8.2 million restitution and court fines.