The McHenry County trial has been delayed again for a Crystal Lake man accused of bilking thousands of dollars from a local veterans’ organization – and who is currently serving a 4½-year federal prison term for running an $8.2 million Ponzi scheme.
On Thursday, Alan J. Hanke, 61, was expected to appear via Zoom in Judge Tiffany Davis’s courtroom for a conference in preparation for his trial, which had been set to begin Monday.
Instead, with members of the McHenry-based Sons of the American Legion Post 491 gathered in the courtroom – some shaking their heads as the judge rescheduled the trial – Hanke’s attorney and a prosecutor told Davis there were scheduling issues with federal officials.
Davis rescheduled the trial conference for July 23 and the jury trial for July 27.
The trial has been delayed multiple times including in January after his attorney said more time was needed to prepare.
The irony of Hanke still awaiting trial in McHenry County is that in July last of 2025, he entered a guilty plea in the case. Hanke pleaded guilty to one count of fraudulent use of a debit or credit card. In exchange, a more serious count of theft was dismissed.
But Hanke later filed a motion to withdraw the guilty plea, claiming he didn’t understand that what he was pleading to could land him in prison up to three years.
He said he was innocent of the charges and wanted his case to be heard by a jury. He also claimed his former attorney “forced and coerced” him into accepting the plea deal, court records and Shaw Local reporting shows.
Davis granted the withdrawal of Hanke’s plea and set the case for trial on both original charges: theft of $10,000 to $100,000, a Class 2 felony, and fraudulent use of a debit or credit card, court documents show.
His attorneys also had successfully delayed multiple times the date when Hanke had to report to federal prison, citing his ongoing medical issues, as well as the pending McHenry County trial.
In McHenry County, Hanke is accused of fraudulently using the legion’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, a boat rental in Florida and purchases at retail stores and on Amazon.
For his federal conviction, Hanke is housed at Federal Medical Center Rochester in Minnesota, which houses prisoners with medical needs.
Federal authorities charged Hanke in 2024 with multiple fraud offenses that they said amounted to an $8 million Ponzi scheme. U.S. prosecutors alleged that “nearly all of the money 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.