On Thursday, Feb. 19, McHenry County Circuit Court Judge Tiffany Davis signed a failure-to-appear arrest warrant for Alan J. Hanke, even though the Crystal Lake man had already reported to federal custody to start a nearly five-year sentence in a multimillion-dollar fraud case. Hanke, 61, is still facing separate state charges that accuse him of using a veterans group’s debit card without authorization. The warrant adds fresh urgency for local prosecutors to coordinate with federal authorities on how and when he can be produced for pretrial motions and a March jury trial.
Warrant Followed His Transfer To Federal Custody
According to Lake and McHenry County Scanner, Judge Davis issued the failure-to-appear warrant after court filings showed Hanke had reported to the Federal Medical Center in Rochester, Minnesota, to begin serving his sentence. The McHenry case entry came after prosecutors noted that Hanke was no longer physically available for local court hearings because he had been transferred into federal custody.
Federal Conviction And What Prosecutors Allege
Hanke pleaded guilty on June 11, 2024, to conspiracy to commit securities fraud in the Eastern District of New York, admitting that he misappropriated more than $8 million and used bankruptcy filings to hide the scheme, according to the U.S. Attorney's Office. Federal prosecutors said investors’ funds were diverted to cover Hanke’s personal expenses, including cruises, hotel stays, gambling and a luxury vehicle.
State Charges, Withdrawn Plea And Defense Motion
In McHenry County, prosecutors charged Hanke in September 2024 with theft by deception over $10,000 and fraud by use of a debit or credit card, alleging he used the Sons of the American Legion Post 491 debit card for withdrawals and purchases between January 2023 and March 2024. He was later sentenced in the federal case and ordered to pay about $8.2 million in restitution. His current attorney, Albert Wysocki, has filed motions in McHenry County to withdraw an earlier blind plea, arguing that a prior lawyer coerced the agreement and asserting that Hanke “knows he didn’t defraud” the legion, according to the Northwest Herald.
How Production From Federal Custody Usually Works
Now that Hanke is in federal custody, local prosecutors would generally need to seek his production for state court through a writ of habeas corpus ad prosequendum or by coordinating with the U.S. Marshals Service and the Bureau of Prisons to arrange transport for hearings. The U.S. Marshals note that such productions are discretionary and can depend on medical, security and cost considerations, which can complicate both scheduling and carrying out state court appearances, according to U.S. Marshals guidance.
What Comes Next In The McHenry Case
The court calendar still lists a series of pretrial dates, including motions on March 18, a jury conference on March 26 and a jury trial set to begin March 30. With a failure-to-appear warrant now on file, prosecutors say they will work with federal officials to determine when Hanke can be brought to McHenry County for those proceedings, per Lake and McHenry County Scanner. For alleged victims and members of Post 491, the local case remains the pressing concern even as the federal restitution process plays out.
