8.42 Embezzlement or Misapplication by Officer or Employee of Lending, Credit or Insurance Institution

8.42 EMBEZZLEMENT OR MISAPPLICATION BY OFFICER OR EMPLOYEE
OF LENDING, CREDIT OR INSURANCE INSTITUTION
(18 U.S.C. § 657) 

Comment

The Committee recommends that when a defendant is accused of embezzlement or willful misapplication in violation of 18 U.S.C. § 657, Instruction 8.41 (Theft, Embezzlement or Misapplication of Bank Funds) should be used with appropriate modifications. Section 656 and Section 657 contain the same elements. United States v. Musacchio, 968 F.2d 782, 787 n.6 (9th Cir. 1991). 

See United States v. Bennett, 621 F.3d 1131, 1138 (9th Cir. 2010) (interpreting "financial institution" under 18 U.S.C. § 1344 to exclude wholly owned subsidiary of financial institution and criticizing United States v. Cartwright, 632 F.2d 1290 (5th Cir. 1980), which held that "a subsidiary’s assets ‘belonged to’ a parent corporation for purposes of 18 U.S.C. § 657").

Approved 9/2018