§ 656. — Theft, embezzlement, or misapplication by bank officer or employee.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 18USC656]
TITLE 18--CRIMES AND CRIMINAL PROCEDURE
PART I--CRIMES
CHAPTER 31--EMBEZZLEMENT AND THEFT
Sec. 656. Theft, embezzlement, or misapplication by bank officer
or employee
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.
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\1\ See References in Text note below.
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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.
(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''.
Section Referred to in Other Sections
This section is referred to in sections 225, 657, 981, 982, 1006,
1510, 1956, 3293, 3322 of this title; title 12 sections 324, 1785, 1786,
1821, 1828, 1829, 1831k, 1833a.
