All Agencies, Latest Month All Agencies, Current FY Geographic Distribution
of Convictions for
All Agencies, FY 2014
3 Prosecutions
in August 2014
72 Prosecutions
in Fiscal Year 2014
6 Convictions
in August 2014
88 Convictions
in Fiscal Year 2014

CITE

    18 USC Sec. 656                                             01/05/2009

EXPCITE

    TITLE 18 - CRIMES AND CRIMINAL PROCEDURE
    PART I - CRIMES
    CHAPTER 31 - EMBEZZLEMENT AND THEFT

HEAD

    Sec. 656. Theft, embezzlement, or misapplication by bank officer or
      employee

STATUTE

      Whoever, being an officer, director, agent or employee of, or
    connected in any capacity with any Federal Reserve bank, member
    bank, depository institution holding company, national bank,
    insured bank, branch or agency of a foreign bank, or organization
    operating under section 25 or section 25(a) (!1) of the Federal
    Reserve Act, or a receiver of a national bank, insured bank,
    branch, agency, or organization or any agent or employee of the
    receiver, or a Federal Reserve Agent, or an agent or employee of a
    Federal Reserve Agent or of the Board of Governors of the Federal
    Reserve System, embezzles, abstracts, purloins or willfully
    misapplies any of the moneys, funds or credits of such bank,
    branch, agency, or organization or holding company or any moneys,
    funds, assets or securities intrusted to the custody or care of
    such bank, branch, agency, or organization, or holding company or
    to the custody or care of any such agent, officer, director,
    employee or receiver, shall be fined not more than $1,000,000 or
    imprisoned not more than 30 years, or both; but if the amount
    embezzled, abstracted, purloined or misapplied does not exceed
    $1,000, he shall be fined under this title or imprisoned not more
    than one year, or both.
      As used in this section, the term "national bank" is synonymous
    with "national banking association"; "member bank" means and
    includes any national bank, state bank, or bank and trust company
    which has become a member of one of the Federal Reserve banks;
    "insured bank" includes any bank, banking association, trust
    company, savings bank, or other banking institution, the deposits
    of which are insured by the Federal Deposit Insurance Corporation;
    and the term "branch or agency of a foreign bank" means a branch or
    agency described in section 20(9) of this title. For purposes of
    this section, the term "depository institution holding company" has
    the meaning given such term in section 3 of the Federal Deposit
    Insurance Act.

SOURCE

    (June 25, 1948, ch. 645, 62 Stat. 729; Pub. L. 101-73, title IX,
    Sec. 961(b), Aug. 9, 1989, 103 Stat. 499; Pub. L. 101-647, title
    XXV, Secs. 2504(b), 2595(a)(1), 2597(f), Nov. 29, 1990, 104 Stat.
    4861, 4906, 4909; Pub. L. 103-322, title XXXIII, Sec. 330016(1)(H),
    Sept. 13, 1994, 108 Stat. 2147; Pub. L. 104-294, title VI, Secs.
    601(f)(1), 606(a), Oct. 11, 1996, 110 Stat. 3499, 3511.)

HISTORICAL AND REVISION NOTES

      Based on sections 592, 597 of title 12, U.S.C., 1940 ed., Banks
    and Banking (R.S. 5209; Dec. 23, 1913, ch. 6, Sec. 22(i), as added
    June 19, 1934, ch. 653, Sec. 3, 48 Stat. 1107; Sept. 26, 1918, ch.
    177, Sec. 7, 40 Stat. 972; Aug. 23, 1935, ch. 614, Sec. 316, 49
    Stat. 712).
      Section 592 of title 12, U.S.C., 1940 ed., Banks and Banking, was
    separated into three sections the first of which, embracing
    provisions relating to embezzlement, abstracting, purloining, or
    willfully misapplying moneys, funds, or credits, constitutes part
    of the basis for this section. Of the other two sections, one
    section, 334 of this title, relates only to the issuance and
    circulation of Federal Reserve notes and the other, section 1005 of
    this title, to false entries or the wrongful issue of bank
    obligations.
      The original section, containing more than 500 words, was
    verbose, diffuse, redundant, and complicated. The enumeration of
    banks affected is repeated eight times. The revised section without
    changing in any way the meaning or substance of existing law,
    clarifies, condenses, and combines related provisions largely
    rewritten in matters of style.
      The words "national bank" were substituted for "national banking
    association," the terms being synonymous by definition of section
    221 of title 12, U.S.C., 1940 ed., Banks and Banking, written into
    the last paragraph of this section. This change made possible the
    use of the term "such bank" in substitution for the words "such
    Federal Reserve bank, member bank, or such national banking
    association, or insured bank," in each of seven instances.
      The special and separate provisions of the original section
    relating to embezzlement by national bank receivers or Federal
    Reserve agents are readily combined in the revised section by
    including these officers in the initial enumeration of persons at
    whom the act is directed and by inserting the word "purloins" after
    "embezzles, abstracts," and the phrase "or any moneys, funds,
    assets, or securities intrusted to the custody or care," following
    the words "of such bank".
      The last paragraph of the revised section includes the
    definitions of sections 221 and 264(c) of title 12, U.S.C., 1940
    ed., Banks and Banking, made applicable by express provision of the
    original section. These were written in, with only such changes of
    phraseology as were necessary, in order to make the revised section
    complete and self-contained. For meaning of "bank," as used in bank
    robbery statute, see section 2113 of this title.
      Section 597 of title 12, U.S.C., 1940 ed., Banks and Banking,
    likewise was separated into two parts, one of which was combined
    with the embezzlement provisions of said section 592 to form this
    section. The other part was combined with the related provisions of
    said section 592 to form section 1005 of this title.
      It will be noted that section 597 of title 12, U.S.C., 1940 ed.,
    Banks and Banking, was limited to "Whoever, being connected in any
    capacity with a Federal Reserve bank"; that it enumerated "note,
    debenture, bond, or other obligation, or draft, mortgage, judgment,
    or decree"; and that it stipulated punishment by fine of not more
    than $10,000 or imprisonment of not more than 5 years, or both.
      In combining these provisions, the words "or connected in any
    capacity" were written into the new section after the words
    "employee of," thus making them applicable not only to Federal
    Reserve banks but to the other banks as well. The phrase of section
    592 of title 12, U.S.C., 1940 ed., Banks and Banking, "or who,
    without such authority, issues or puts forth any certificate of
    deposit, draws any order or bill of exchange, makes any acceptance,
    assigns any note, bond, draft, bill of exchange, mortgage,
    judgment, or decree," was modified to include the enumeration of
    like obligations in section 597 of title 12, U.S.C., 1940 ed.,
    Banks and Banking, and to read as follows: "whoever without such
    authority makes, draws, issues, puts forth, or assigns any
    certificate of deposit, draft, order, bill of exchange, acceptance,
    note, debenture, bond, or other obligation or mortgage, judgment,
    or decree". (See section 1005 of this title.)
      As thus changed the new section is clear, simple, and
    unambiguous. The very slight changes of substance that have been
    noted, were unavoidable if the two sections were to be combined.
    Without combination any constructive revision of these duplicitous
    and redundant provisions was impossible. It is believed that the
    revised sections adequately and correctly represent the intent of
    Congress as the same can be gathered from the overlapping and
    confusing enactments. At any rate, the severest criticism of the
    revised sections is that a person connected with a Federal Reserve
    bank who violates these sections can at most be punished by a fine
    of $5,000 or imprisonment of 5 years, or both, whereas under
    section 597 of title 12, U.S.C., 1940 ed., Banks and Banking, he
    might have been fined $10,000 or imprisoned 5 years, or both.
    Obviously an embezzler will rarely be financially able to pay even
    a $5,000 fine even where such fine is imposed. Certainly if it is
    an adequate fine for a national bank president it is not too
    disproportionate for a person "connected in any capacity with a
    Federal Reserve bank".
      The smaller punishment for an offense involving $100 or less was
    added. (See reviser's notes under sections 641, 645 of this title.)
      The words "shall be deemed guilty of a misdemeanor" were omitted
    as unnecessary in view of definitive section 1 of this title.
      The words "upon conviction thereof" were omitted as unnecessary,
    since punishment cannot be imposed without conviction.
      Words "In any district court of the United States" were omitted
    as unnecessary since section 3231 of this title gives the district
    courts jurisdiction of criminal prosecution.
                         SENATE REVISION AMENDMENT
      Certain words were stricken from the section as being unnecessary
    and inconsistent with other sections of this revision defining
    embezzlement and without changing existing law. See Senate Report
    No. 1620, amendment No. 6, 80th Cong.

REFERENCES IN TEXT

      Section 25 of the Federal Reserve Act, referred to in text, is
    classified to subchapter I (Sec. 601 et seq.) of chapter 6 of Title
    12, Banks and Banking. Section 25(a) of the Federal Reserve Act,
    which is classified to subchapter II (Sec. 611 et seq.) of chapter
    6 of Title 12, was renumbered section 25A of that act by Pub. L.
    102-242, title I, Sec. 142(e)(2), Dec. 19, 1991, 105 Stat. 2281.
      Section 3 of the Federal Deposit Insurance Act, referred to in
    text, is classified to section 1813 of Title 12.

AMENDMENTS

      1996 - Pub. L. 104-294, in first par., substituted "Federal
    Reserve Act," for "Federal Reserve Act,," and "$1,000" for "$100".
      1994 - Pub. L. 103-322, in first par., substituted "fined under
    this title" for "fined not more than $1,000" after "he shall be".
      1990 - Pub. L. 101-647, Sec. 2597(f)(1), in first par., directed
    substitution of "national bank, insured bank, branch or agency of a
    foreign bank, or organization operating under section 25 or section
    25(a) of the Federal Reserve Act," for "national bank, or insured
    bank" which was executed by making the substitution for "national
    bank or insured bank" to reflect the probable intent of Congress,
    and inserted "insured bank, branch, agency, or organization" after
    "receiver of a national bank,", ", branch, agency, or organization"
    after "misapplies any of the moneys, funds or credits of such
    bank", and "branch, agency, or organization" after "custody or care
    of such bank,".
      Pub. L. 101-647, Sec. 2595(a)(1)(A), (B), in first par., inserted
    "depository institution holding company," after "Federal Reserve
    Bank, member bank," and "or holding company" after "such bank" in
    two places.
      Pub. L. 101-647, Sec. 2504(b), in first par., substituted "30
    years" for "20 years".
      Pub. L. 101-647, Sec. 2597(f)(2), in second par., struck out
    "and" after "one of the Federal Reserve Banks;" and directed
    insertion of "; and the term 'branch or agency of a foreign bank'
    means a branch or agency described in section 20(9) of this title"
    before the period which was executed by making the insertion before
    the period at end of first sentence to reflect the probable intent
    of Congress.
      Pub. L. 101-647, Sec. 2595(a)(1)(C), in second par., inserted at
    end "For purposes of this section, the term 'depository institution
    holding company' has the meaning given such term in section 3 of
    the Federal Deposit Insurance Act."
      1989 - Pub. L. 101-73, in first par., substituted "$1,000,000"
    for "$5,000" and "20 years" for "five years".

FOOTNOTE

    (!1) See References in Text note below.
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