NATIONALLY RECOGNIZED FEDERAL LAWYERS
Can bank employees go to prison for theft?
|Thanks for visiting Spodek Law Group – a second-generation law firm managed by Todd Spodek. We have over 40 years of combined experience handling some of the most complicated federal criminal cases in the country. You’ve probably heard about our work – Todd represented Anna Delvey in the case that became a Netflix series, and we’ve handled everything from the Ghislaine Maxwell juror misconduct case to defending clients facing massive embezzlement charges. If you’re reading this article, someone close to you is likely facing federal charges for bank theft, or you’re trying to understand just how serious this situation is. Bank employees who steal go to prison – that’s not an exaggeration, and the sentences are not light.
Federal prosecutors treat bank employee theft differently than almost any other white-collar crime. Why? Because you violated a position of trust at an institution insured by the federal government. The moment you took money from a federally insured bank – and nearly every bank in America is FDIC-insured – you committed a federal crime under 18 U.S.C. § 656. This statute carries up to 30 years in federal prison if the amount exceeds $1,000, and up to $1 million in fines. Even if you took less than $1,000, you’re still looking at up to one year in prison. These aren’t theoretical maximums – people actually serve these sentences.
The Federal Statute Is Unforgiving
18 U.S.C. § 656 covers anyone employed by or “connected in any capacity” with a Federal Reserve bank or FDIC-insured institution. Tellers, loan officers, branch managers, general counsel – it doesn’t matter. If you embezzled, misapplied, or willfully took money or assets from the bank, you fall under this statute. The law doesn’t care if you planned to pay it back. It doesn’t care if you were desperate or going through a divorce or facing medical bills. Federal prosecutors see one thing: you had access to other people’s money, you took it, and you violated the public trust.
What makes this statute particularly brutal is the sentencing range. A bank employee in Pennsylvania was sentenced in 2025 to 27 months in federal prison – 3 months for bank fraud and a mandatory 24 months for aggravated identity theft, served consecutively. That’s over two years in federal prison for someone who probably thought they’d never get caught. Another case from early 2025 involved James Blose, a bank general counsel who ran a decade-long embezzlement scheme and received 48 months in prison followed by three years of supervised release. And Robert Kowalski – a former attorney involved in the collapse of Washington Federal Bank – was sentenced to 25 years in federal prison and ordered to pay over $7 million in restitution to the FDIC and IRS.
These aren’t outliers. Federal sentencing guidelines calculate your sentence based on the amount of loss and your criminal history. The more you stole, the higher your offense level climbs. A $10,000 theft lands you in a very different sentencing range than a $100,000 theft – and federal judges follow these guidelines closely, even after United States v. Booker made them advisory instead of mandatory. You’re not getting probation if you embezzled six figures from a bank.
How Prosecutors Prove Bank Employee Theft Cases
Federal prosecutors don’t file charges unless they’re confident they can prove the case beyond a reasonable doubt. Bank theft cases are particularly easy for the government to build because banks keep meticulous records. Every transaction is logged, every transfer is documented, and banks conduct regular audits. When money goes missing, they notice – and they notice fast.
The government needs to prove three elements: that you were an officer, director, agent, or employee of a federally insured bank; that you willfully misapplied, embezzled, or stole money or assets from the bank; and that the amount exceeded $1,000 (for the higher penalties). “Willfully” means you acted intentionally, not by accident. If you deliberately moved funds into your personal account, falsified records to cover your tracks, or created fake transactions to siphon money, you acted willfully. It’s not a high bar for prosecutors to clear.
What’s worse – most defendants leave a digital trail. Emails discussing the scheme, text messages coordinating with accomplices, altered bank records that forensic accountants can reconstruct. We’ve seen cases where employees thought they were being clever by spacing out small withdrawals over months or years. The bank’s internal audit catches it anyway, and now you’re facing federal charges for dozens or hundreds of separate theft acts. Each act can be charged separately, which means the government has leverage to stack counts and pressure you into a plea agreement.
Sentencing Depends on the Amount and Your Criminal History
Federal sentencing guidelines use a loss table to calculate your base offense level. The more you stole, the higher the level. Steal $10,000 to $30,000, and you’re looking at a base offense level around 12-14. Steal $250,000 to $550,000, and you’re at level 18 or higher. Your criminal history category also matters – if you have prior convictions, you’ll land in a higher category, which increases your guideline range significantly.
Beyond the base calculation, judges can apply enhancements. If you abused a position of trust – which every bank employee does by definition – that’s an automatic two-level enhancement. If you were an organizer or leader in a scheme involving multiple people, that’s another enhancement. If you obstructed justice by destroying records or lying to investigators, that’s more levels added. These enhancements stack, and before you know it, your guideline range has climbed from 18-24 months to 51-63 months or higher.
The only way to reduce your sentence at this point is through cooperation or acceptance of responsibility. If you plead guilty early and show genuine remorse, you can earn a three-level reduction for acceptance of responsibility – that’s significant, potentially shaving years off your sentence. If you cooperate with prosecutors and provide substantial assistance (for example, testifying against co-conspirators or revealing other crimes), the government can file a motion under 18 U.S.C. § 3553(e) or U.S.S.G. § 5K1.1, asking the judge to depart below the guideline range. But cooperation isn’t guaranteed to help, and it comes with risks – you’re now a government witness, which can create dangerous situations depending on who you’re testifying against.
Real Consequences Beyond Prison Time
Prison is just the beginning. Federal convictions for bank theft come with collateral consequences that destroy careers and families. You’ll have a federal felony on your record – that means you can’t work in banking, finance, or any position requiring fiduciary responsibility ever again. Most professional licenses (law, accounting, real estate) get revoked or suspended. You’ll struggle to find employment even in unrelated fields, because employers run background checks and see “embezzlement from a federally insured bank” on your record.
Restitution is mandatory. If you stole $200,000, the court will order you to pay it back – every dollar, with interest. You’ll be on a payment plan for decades, and if you miss payments, the government can garnish your wages, seize your tax refunds, and place liens on your property. Supervised release follows your prison sentence – typically three years – during which you’ll report to a probation officer, submit to drug testing, and comply with conditions like restricted travel and employment verification. Violate any condition, and you go back to prison.
Your family suffers too. While you’re incarcerated, your spouse and children lose your income, your presence, and often your home if mortgage payments can’t be made. Federal prison is often far from where you live – the Bureau of Prisons assigns you to a facility based on security level and availability, not proximity to family. Visits become rare, expensive, and emotionally devastating. The stigma of being married to or related to a convicted felon follows your family members in their own communities and workplaces.
Why You Need a Federal Criminal Defense Attorney Immediately
If you’re under investigation or have been charged with bank theft, you need a lawyer who handles federal cases – not a general practice attorney, not a DUI lawyer who occasionally takes federal cases. Federal criminal defense is a different world, with different rules, different prosecutors, and different consequences. At Spodek Law Group, we’ve defended clients facing embezzlement charges involving millions of dollars, and we’ve secured outcomes that other lawyers said were impossible.
The most important thing you can do is stay silent. Don’t talk to bank investigators. Don’t talk to FBI agents. Don’t try to explain yourself or “clear things up” without a lawyer present. Everything you say will be used against you – federal agents are trained interrogators who will twist your words and use your own statements to build their case. Invoke your right to counsel immediately, and let us handle all communication with investigators and prosecutors.
We work with forensic accountants who can challenge the government’s loss calculations. We hire private investigators to uncover mitigating evidence – maybe you were coerced by a superior, maybe the bank’s internal controls were so lax that your actions didn’t rise to the level of willful theft, maybe the actual loss amount is far lower than what prosecutors claim. We fight for departures and variances at sentencing, presenting evidence of your mental health struggles, family circumstances, lack of prior criminal history, and genuine remorse. We know which arguments federal judges in your district respond to, because we’ve appeared before them in dozens of cases.
Federal prosecutors have unlimited resources – FBI investigators, IRS forensic accountants, years to build their case. You need a defense team that matches their firepower. We’ve been doing this for over 40 years, and many of the cases we’re famous for handling – are cases that others say were unwinnable. We don’t promise outcomes we can’t deliver, but we fight like hell for every client.
If you or someone you love is facing federal charges for bank employee theft, call us immediately. We’re available 24/7, and consultations are confidential. The decisions you make in the next few days will determine whether you spend the next decade in federal prison or have a fighting chance at a reduced sentence or alternative resolution. Don’t wait – federal cases move fast, and every day you delay is a day the government uses to strengthen their case against you.