Hanna was convicted in 2007 of one count of conspiracy, 19 counts of mail fraud and two counts of wire fraud in connection with the August 2003 murder of former assistant Johnsonville city administrator Teresa Powell Hanna. Teresa Hanna was found shot to death Aug. 15, 2003 in the driveway of her Vox Highway residence. He was sentenced to 440 years in prison. The federal indictment alleged that the two conspired to kill Teresa Hanna and filed claims to collect more than $270,000 from her life insurance and accidental-death insurance policies. It also alleged the brothers tried to drown Teresa Hanna in early August 2003 in the Intercoastal Waterway at Georgetown but were unsuccessful.
The federal charges were handed down after Darry Hanna and his older brother Johnny David Davy Hanna were acquitted of murder charges in state court in August 2005. Davy Hanna committed suicide Aug. 26, 2006, while being held on the federal charges at the Florence County Detention Center in Effingham.