Misapplication, Embezzlement, and False Entries (From Banking Crimes: Fraud, Money Laundering, and Embezzlement, P 3.1-3.56, 1988, by John K Villa -- See NCJ-117693)

• NCJ Number: 117696
• Author(s): J K Villa
• Date Published: 1988
• Length: 56 pages
• Sale Source: Clark Boardman Company, Ltd
• Publication Type: Legislation/Policy Description
• Language: English
• Country: United States of America

Annotation

The four main Federal criminal laws applicable to criminal misconduct by insiders of financial institutes relate to misapplication, embezzlement, and false entry.

Abstract

These laws prohibit officers, directors, employees, and agents from misapplying or embezzling the bank's funds or making false entries in the bank's books with the intent of injuring or defrauding the bank. The two misapplication and embezzlement statutes are almost identical, except that Section 656 of the 1984 bank fraud statute applies to banks and Section 657 applies to savings and loan associations, credit unions, and certain other institutions. The two false entry statutes (Section 1005 and 1006) reflect the same parallelism, except that precedents that interpret one of the statutes are often used to interpret the parallel provisions and, in some cases, precedent interpreting a misapplication statute is used to interpret a similar issue arising under the false entry statute, and vice versa. The misapplication and embezzlement statutes are of primary importance in banking crimes. However, the false entry statutes are also important because prosecutions of insiders often charge violations of both laws and contain the same essential elements of intent. Discussion of judicial decisions and 26 footnotes.