18 U.S.C. § 1005 – Bank Entries, Reports, and Transactions
This statute targets bank insiders who issue unauthorized obligations, falsify bank records, or personally profit from bank transactions with intent to defraud.
Section 1005 applies to officers, directors, agents, and employees of covered banks and related entities. It criminalizes a range of conduct involving false bank records, unauthorized financial instruments, and insider participation in profits tied to fraudulent intent.
What the law prohibits.
A person violates this statute if they:
- Issue or circulate bank notes without authority from the bank’s directors
- Make, draw, issue, put forth, or assign certain bank obligations (such as certificates of deposit, drafts, notes, debentures, bonds, or similar instruments) without authority
- Make a false entry in any book, report, or statement of a covered institution with intent to injure or defraud, or to deceive regulators or examiners
- With intent to defraud the United States (or an agency) or a covered financial institution, participate in, share in, or receive money, profit, property, or benefits through any transaction, loan, commission, contract, or other act of that institution
Who it covers.
The statute applies to personnel associated with covered institutions, including national banks, insured banks, member banks, Federal Reserve banks, branches or agencies of foreign banks, and certain holding companies and related entities.
Penalties.
A violation of 18 U.S.C. § 1005 is punishable by:
- Up to $1,000,000 in fines
- Up to 30 years in federal prison
- Or both
If you’re being investigated or charged in a federal bank fraud or false bank records case, call (314) 900-HELP or contact our federal criminal defense attorneys to discuss your options.
