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What is embezzlement from bank?
|Thanks for visiting Spodek Law Group. We’re a second-generation law firm managed by Todd Spodek – who has many, many years of experience in federal criminal defense. Our team has over 40 years of combined experience successfully handling white-collar federal crimes, from the Anna Delvey case that became a Netflix series to the Ghislaine Maxwell juror misconduct case. If you’re reading this, you’re probably in serious legal trouble – and we’re here to explain what embezzlement from a bank actually means under federal law and what kind of prison time you’re facing.
Bank embezzlement isn’t just stealing money. It’s a specific federal crime under 18 U.S.C. § 656 that applies when a bank officer or employee takes money or property from the financial institution where they work. The federal government prosecutes these cases aggressively because banks hold public deposits insured by the FDIC. When you steal from a bank as an employee, federal prosecutors see you as threatening the stability of the entire banking system.
Who the statute applies to
Section 656 covers any officer, director, agent, or employee of a federally insured bank – and that includes credit unions, savings and loan associations, and any lending institution operating under the Federal Reserve Act. You don’t have to be a bank teller. General counsels get prosecuted. Branch managers get prosecuted. Loan officers get prosecuted.
James Blose served as General Counsel at Hudson Valley Bank, Sterling National Bank, and Webster Bank – the top lawyer at these institutions. He was sentenced to 48 months in prison in April 2025 for a decade-long embezzlement scheme involving $7.4 million. Federal prosecutors don’t care about your title.
Another 2025 case involves Sixto Christopher Porras, a San Francisco bank employee who allegedly used a reissued debit card to steal approximately $340,000 from a customer’s account. He’s charged under both embezzlement and access device fraud. The FBI and IRS Criminal Investigation prosecute bank employees at every level.
Intent is easier to prove than you think
Courts have held that “intent to injure or defraud” is an essential element. Here’s the problem: prosecutors don’t need to prove you intended to permanently deprive the bank of the money. They just need to prove you knowingly took funds you weren’t authorized to take.
You’re a loan officer who approves a personal loan to yourself using fake documents – telling yourself you’ll pay it back. Doesn’t matter. You had intent to defraud when you created the fake documents. You’re a branch manager who temporarily “borrows” $5,000 from the vault to cover personal expenses, planning to replace it. That’s embezzlement the moment you take it.
Federal prosecutors pull years of bank records, interview your coworkers, analyze every transaction you touched. The intent element gets proven through your actions over time – not what you claim you were thinking. One unauthorized withdrawal becomes ten. One falsified document becomes a hundred.
The penalties destroy lives
If the amount embezzled exceeds $1,000, you face up to 30 years in federal prison and a fine up to $1,000,000. Both – not one or the other. For amounts under $1,000, the maximum is one year and a $100,000 fine, but nobody gets prosecuted federally for stealing $500.
Robert Kowalski got 25 years in federal prison in 2024 for embezzlement tied to Washington Federal Bank for Savings in Chicago, plus $7.2 million in restitution to the FDIC. James Blose got 48 months for his $7.4 million scheme. The sentencing range depends on the amount stolen, your criminal history, whether you accepted responsibility, and the damage you caused.
Federal judges use the Sentencing Guidelines. Bank embezzlement falls under Section 2B1.1. Your base offense level starts at 6 or 7, then increases based on loss amount. Steal $250,000 and you add 14 levels. Steal over $9.5 million and you add 24 levels. Each level adds months or years – and that’s before the judge considers an upward variance because you violated a position of trust.
Multiple charges, stacked sentences
The government never charges just embezzlement. They charge conspiracy, bank fraud under 18 U.S.C. § 1344, money laundering if you tried to hide the funds, wire fraud if you used electronic transfers, tax evasion if you didn’t report the money, and access device fraud if you used cards improperly.
Wire fraud is particularly dangerous because each wire transfer is a separate count. If you embezzled $500,000 using 200 electronic transfers, that’s potentially 200 counts of wire fraud – each carrying up to 20 years. Prosecutors offer to drop 190 counts if you plead guilty to embezzlement and ten wire fraud counts. Sounds like a deal until you realize you’re still facing decades.
Don’t talk to federal agents without a lawyer
Banks have sophisticated fraud detection systems – they notice missing money quickly and report suspicious activity to FinCEN and federal agencies. By the time the FBI contacts you, they’ve already analyzed months or years of transactions. They know how much you took, when you took it, and probably how you spent it.
The worst thing you can do is talk to federal agents without counsel present. You think you’re explaining your side or showing it was a mistake. What you’re actually doing is providing statements they’ll use to prove intent to defraud. You’re giving them admissions they didn’t have before.
If you cooperate early – meaning before formal charges – you might qualify for substantial assistance under 18 U.S.C. § 3553(e). Federal prosecutors reduce sentences for defendants who provide information about other crimes or participants. In cases involving multiple employees, the first person to cooperate gets the best deal. The second gets a decent deal. The third gets indicted with everyone else.
Why we can help
At Spodek Law Group – we’ve handled federal white-collar cases for decades. Our team includes former federal prosecutors who understand exactly how the government builds these cases. We know when cooperation makes sense and when it doesn’t. We know how to negotiate plea agreements that minimize prison time and restitution obligations.
If federal investigators have contacted you, if your bank suspended you pending investigation, if you received a target letter from the U.S. Attorney’s Office – call us now. Not next week. Now. We’re available 24/7.
Todd Spodek and our team have defended clients in cases others said were unwinnable. We represented Anna Delvey, handled the Ghislaine Maxwell juror case, and we’ve secured outcomes in impossible situations. Bank embezzlement charges destroy careers, families, futures. But with experienced representation – with early intervention and strategic defense – you can minimize the damage. Contact Spodek Law Group today for a risk-free consultation where we’ll review your case and give you honest answers about what you’re facing.