| There are numerous types of financial institutional fraud. Some of the types include both embezzlement and false entries made by representatives of financial institutions.
Embezzlement
Embezzlement associated with financial institutional fraud is a federal crime. Embezzlement is defined as the fraudulent appropriation of property or money by an individual to whom such property has been entrusted or into whose hands it has lawfully come.
The prosecution must show that the defendant had lawful possession of the property. This may be shown by way of the defendant's position within the financial institution or dealings with the financial institution. The prosecution may establish possession by presenting documentary or testimonial evidence. The possession may be either constructive or actual.
For example, if the defendant was an account representative and took funds that belonged to the financial institution, he or she may be charged with embezzlement only if it can be shown that he or she was in legal possession of the stolen funds. If the account representative did have had the authority to transfer the client's money, he or she could properly be convicted of embezzlement.
False Entries
If a representative from a financial institution makes a false entry, the representative may be charged with the felony offense of making a false entry. It is unlawful for an officer, agent or employee to make a false entry in any book or statement in a financial institution with the intent to injure or defraud. The prosecution must show that:
- the entry made was false,
- the defendant either made the entry or acted in some way to cause the entry to be made,
- the defendant knew that the entry was false when he or she made it and
- the defendant intended that the entry injure or defraud the financial institution.
For the defendant to be found guilty of making a false entry, the prosecution need not show that the defendant actually made the entry, but rather that he or she acted in a deliberate manner that resulted in the making of the false entry.
Penalties
With respect to a conviction for making a false entry, the defendant may be fined up to $1,000,000, sentenced to up to 30 years in prison, or both. Copyright 2010 LexisNexis, a division of Reed Elsevier Inc. |