18 U.S.C. § 656 – Theft, embezzlement, or misapplication by bank officer or employee
This law makes it a federal crime for a bank employee or officer to steal, misuse, or intentionally misapply money or property belonging to a financial institution.
Section 656 applies to people who work for federally insured banks, credit unions, and similar financial institutions. It punishes employees who take or misuse bank funds, whether by stealing money, diverting customer deposits, altering records, or misusing bank assets for personal benefit. Both completed theft and attempted misuse of funds fall under this statute.
What the law prohibits.
A person violates this statute if, while working for a covered financial institution, they knowingly:
- Embezzle, steal, or misapply bank money or property, including customer funds.
- Convert bank assets for personal use or for someone else’s benefit.
- Cause the bank to suffer a loss through dishonest or unauthorized financial activity.
- Attempt to carry out any of the above actions.
The law applies to officers, employees, agents, and anyone connected with a federally related financial institution.
Penalties.
Punishment depends on the amount involved and the severity of the conduct:
- Felony: up to 30 years in federal prison and fines up to $1,000,000.
- Misdemeanor: lower penalties may apply if the amount is minimal, but courts treat most violations as felonies due to the nature of bank funds.
If you’re under investigation for bank-related theft or embezzlement, call (314) 900-HELP or contact our federal criminal defense attorneys for guidance.
