Yes, regardless of how you may interpret what a preferential rate is, by giving a personal loan to a bank officer at a lower rate of interest gives a federal criminal investigator plenty of reason to instigate an investigation for willful misapplication of bank funds in New York City.
What Is Misapplication?
Misapplication is an offense addressed by federal law 18 U.S.C. Sections 656, 657 that is one of the most widely used tools in bank fraud federal prosecutions. This crime involves willfully converting the funds to your own use, benefit or gain, or the use, benefit or gain of a third party.
In this case is no concrete rule that states giving a personal loan to a bank officer at preferential rate of interest is a crime.
However under the vague language of 18 USC § 656 and 657, legal officials interpret the action as willful misapplication because it generally considers the conversion of the deposition bank’s funds for the officer’s benefit.
18 USC § 656 and 657, also delegates that the misapplication of bank funds by a bank officer may be incarcerated for a maximum of 30 years. But if the misapplied funds are less than $1,000, then the maximum penalty is up to one year.
If you are being investigated or arrested for bank fraud such as misapplication of bank funds in New York City, then call our office at (212) 577-6677 to get professional legal advice.