1994 US Code
Title 12 - BANKS AND BANKING
CHAPTER 16 - FEDERAL DEPOSIT INSURANCE CORPORATION
Sec. 1829 - Penalty for unauthorized participation by convicted individual

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§1829. Penalty for unauthorized participation by convicted individual (a) Prohibition (1) In general

Except with the prior written consent of the Corporation—

(A) any person who has been convicted of any criminal offense involving dishonesty or a breach of trust or money laundering, or has agreed to enter into a pretrial diversion or similar program in connection with a prosecution for such offense, may not—

(i) become, or continue as, an institution-affiliated party with respect to any insured depository institution;

(ii) own or control, directly or indirectly, any insured depository institution; or

(iii) otherwise participate, directly or indirectly, in the conduct of the affairs of any insured depository institution; and

(B) any insured depository institution may not permit any person referred to in subparagraph (A) to engage in any conduct or continue any relationship prohibited under such subparagraph.

(2) Minimum 10-year prohibition period for certain offenses (A) In general

If the offense referred to in paragraph (1)(A) in connection with any person referred to in such paragraph is—

(i) an offense under—

(I) section 215, 656, 657, 1005, 1006, 1007, 1008,1 1014, 1032, 1344, 1517, 1956, or 1957 of title 18; or

(II) section 1341 or 1343 of such title which affects any financial institution (as defined in section 20 of such title); or

(ii) the offense of conspiring to commit any such offense,

the Corporation may not consent to any exception to the application of paragraph (1) to such person during the 10-year period beginning on the date the conviction or the agreement of the person becomes final.

(B) Exception by order of sentencing court (i) In general

On motion of the Corporation, the court in which the conviction or the agreement of a person referred to in subparagraph (A) has been entered may grant an exception to the application of paragraph (1) to such person if granting the exception is in the interest of justice.

(ii) Period for filing

A motion may be filed under clause (i) at any time during the 10-year period described in subparagraph (A) with regard to the person on whose behalf such motion is made.

(b) Penalty

Whoever knowingly violates subsection (a) of this section shall be fined not more than ,000,000 for each day such prohibition is violated or imprisoned for not more than 5 years, or both.

(Sept. 21, 1950, ch. 967, §2[19], 64 Stat. 893; Aug. 9, 1989, Pub. L. 101–73, title IX, §910(a), 103 Stat. 477; Nov. 29, 1990, Pub. L. 101–647, title XXV, §2502(a), 104 Stat. 4860; Oct. 28, 1992, Pub. L. 102–550, title XV, §1505, 106 Stat. 4055; Sept. 13, 1994, Pub. L. 103–322, title XXXII, §320605, 108 Stat. 2119.)

References in Text

Section 1008 of title 18, referred to in subsec. (a)(2)(A)(i)(I), was repealed by Pub. L. 101–73, title IX, §961(g)(1), Aug. 9, 1989, 103 Stat. 500.

Amendments

1994—Subsec. (a)(2)(A)(i)(I). Pub. L. 103–322 substituted “1517, 1956, or 1957” for “or 1956”.

1992—Subsec. (a)(1)(A). Pub. L. 102–550 inserted “or money laundering” after “breach of trust”.

1990—Subsec. (a). Pub. L. 101–647 amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: “Except with the prior written consent of the Corporation—

“(1) any person who has been convicted of any criminal offense involving dishonesty or a breach of trust may not participate, directly or indirectly, in any manner in the conduct of the affairs of an insured depository institution; and

“(2) an insured depository institution may not permit such participation.”

1989—Pub. L. 101–73 amended section generally. Prior to amendment, section read as follows: “Except with the written consent of the Corporation, no person shall serve as a director, officer, or employee of an insured bank who has been convicted, or who is hereafter convicted, of any criminal offense involving dishonesty or a breach of trust. For each willful violation of this prohibition, the bank involved shall be subject to a penalty of not more than 0 for each day this prohibition is violated, which the Corporation may recover for its use.”

Provisions Not Repealed, Modified or Affected

Nothing contained in sections 201 to 205 and 207 of Pub. L. 89–695 amending sections 1813 and 1817 to 1820 and repealing section 77 of this title to be construed as repealing, modifying, or affecting this section, see section 206 of Pub. L. 89–695, set out as a note under section 1813 of this title.

Cross References

Jurisdiction of District Court of the United States of action for penalty, see section 1355 of Title 28, Judiciary and Judicial Procedure.

1 See References in Text note below.