The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F e d e r a l R e s e r v e Ba n k
N
e w
Y
AREA
o r k
,
N. Y.
of
N ew Yo r k
10045
CODE 2 1 2 -7 91 -5 00 0
To the Chief Executive Officer of
Each Member Bank? Bank Holding
Company, Edge Act or Agreement
Corporation and State licensed
agency or branch of a foreign
bank in the Second Federal Reserve
District:
For over fifty years the Federal Reserve System has asked
that each member bank file with the Federal Reserve Bank, regional
office of the Federal Bureau of Investigation ("FBI"), and United
States Attorney a report of suspected crimes against the banko
In
order to strengthen this policy, the Federal Reserve and the other
financial institution regulatory agencies have joined with the
Department of Justice in agreeing to ask that these reports be
submitted on the attached Criminal Referral Form (FR 2230) . The
purposes of the new form are to provide more specific information
needed to determine whether investigation is warranted and to
accelerate any investigations that are undertaken.,
The information requested and the circumstances under
which the information should be reported is indicated on the form.
Additional matters related to the form follow.
Bank Holding Companies and Edge Act Corporations. All
bank holding companies and Edge Act corporations should submit the
form under the same circumstances as would member banks.
Non-bank
subsidiaries of holding companies and Edge Act corporations are not
covered by this request, therefore no Criminal Referral Form need
be submitted.
Bank subsidiaries should submit the form, but to
their primary regulator rather than the Federal Reserve.
Multi-District Organizations. Many bank holding c o m
panies, Edge Act corporations and foreign banks have offices in
more than one Federal Reserve District.
The original form should
be filed by the headquarters office (for a foreign bank, its United
States headquarters) with that office's Reserve Bank, in addition,
copies of the original should be filed with the FBI office and
United States Attorney where the branch in which the incident
occurred is located.
FED E R A L R E S E R V E BANK O F NEW YORK.
2
F o r e i g n O f f i c e s . F o r e i g n o f f i c e s of m e m b e r banks, bank
h o l d i n g c o m p a n i e s and E d g e A c t c o r p o r a t i o n s (and their bank s u b s i d
iaries) s h o ul d a lso su bm i t the f or m t h r ou g h their h e a d q u a r t e r s
office,,
F o r e i g n o f f i c e s of f o r e i g n b a n k s w i t h S t a t e a g e n c i e s ne ed
not file the r e p o r t un le ss th er e is r e a s o n to b e l i e v e th a t a p r o v i
si on of U n i t e d S t a t e s l aw has b e e n violated,.
E f f e c t i v e D a t e ,, C r i m i n a l R e f e r r a l F o r m N o c 2230
be u se d u p o n r e c e i p t of this l e t t e r „
sho u ld
Q u e s t i o n s c o n c e r n i n g this m a t t e r m a y be d i r e c t e d to
M s „ R i t a Beck, Su pe r vi so r , S u p e r v i s i o n S u p p o r t D i v i s i o n
(212) 791-5908„
v * ./ n
F R E D E R I C K C. S C H A D R A C K
SENIOR VICE PRESIDENT
FR 2230
Page 1 of 7
OMB No. 7100-0212
Control No. (Agency use only)
Criminal Referral Form
Attention: This form should be filed by the reporting finan
cial institution not later than seven business days following
the discovery of the suspected violation. Additional informa
tion not readily available at the time of filing should be sub
mitted on an amended form.
One Copy of the completed form should be filed with each
of the following: (1) the local U.S. Attorney, (2) the local FBI
office, and (3) the Federal Reserve Bank in the District where
the financial institution is located.
Complete all items on this form where suspected criminal
activity involves actual or probable loss (before reimburse
ment or recovery) of $10,000 or greater and in all cases,
regardless of the amount, involving an executive officer,
director or principal shareholder of the institution within the
meaning of Regulation O of the Board of Governors.
Complete only pages one and two if suspected criminal ac
tivity involves actual or probable loss of less than $10,000
(before any recovery or reimbursement) not involving an ex
ecutive officer, director, or principal shareholder of the in
stitution within the meaning of Regulation O of the Board
of Governors.
The Board of Governors of the Federal Reserve System con
siders this report confidential pursuant to applicable provi
sions of the Privacy Act, 5 U.S.C. §552a, and the Freedom of
Information Act, 5 U.S.C. §552. Accordingly, the report and
the information that it contains may be shared with appropri
ate law enforcement agencies consistent with applicable
laws and regulations. In addition, persons identified in the
report may in some circumstances be entitled to access to
the report under provisions of the Privacy Act.
See Detailed Instructions on Page 7
1. Name, Location and Number of Reporting Financial Institution
Nam e__________________________________________________________________________________________
L o c a tio n _________________________________
Street
SMB/BHC No. (if available)_________________
2.
_________________________________
_______
______
State
ZIP Code
City
If activity occurred at branch office(s), please id e n tify ___
Asset Size of Reporting Financial Institution (millions of dollars) $ ______________
3. Approximate date and dollar amount (before any allowance for restitution or recovery) of suspected violation
D ate______________
Month
4. a.
Day
Amount (thousands of dollars) $ ______________
Year
Summary Characterization of the Suspected Violation. Check appropriate box(es)
□ Defalcation/Embezzlement
□ False Statement
□ Check Kiting
b.
□ Bribery/Gratuity
□ Misuse of Position or Self Dealing
□ Mysterious Disappearance
□ Other (describe)____________
_____________________________
_____________________________
Application Section(s) of U.S. Code (if known). (See list on page 6.)_________________________________
5. This matter is being referred to the FBI in______________________________
City
and the U.S. Attorney in______________________________
City
6.
______
State
______
State
__________________________
Judicial District (if known)
Person(s) Suspected of Criminal Violation (If more than one, use continuation sheet)
a. Name
Ml
First
Last
Address
City
Street
Social Securitv No. (if known^
Date of Birth
Month
Day
Year
State
ZIP Code
___________________________________________
Name of Financial Institution
Page 2 of 7
b. Relationship to the financial institution (check all applicable blocks)
□ Officer
□ Employee
□ Broker
□ Shareholder
□ Director
□ Agent
□ Borrower
□ Other (specify)___________________________
c. Is person still affiliated with the financial institution
If no,
□ terminated
□ resigned
□ Yes
□ No
D ate______________
Month
Day
Year
Describe Circumstances of Separation (if necessary, use continuation sheet)________________________________
d.
e.
Prior or related referrals
□ Yes
□ No
If yes, please identify briefly by name and date.
Is person affiliated with any other financial institution
□ Yes
□ No
or business enterprise.
□ Yes
□ No If yes to either or both, please identify.
7.
Explanation/Description of Suspected Violation. (Give a brief summary of the suspected violation, explaining what is
unusual or irregular about the transaction.) (if necessary, use continuation sheet)
8.
Has there been a confession?
9.
Offer of Assistance. The individuals listed below are/will be authorized to discuss this referral with FBI and Depart
ment of Justice officials and to assist in locating or explaining any documents pertinent to this referral, provided
that contact is first made with
□ Yes
□ No
If so, by whom ?___________________________________________
N am e____________________________________________ P osition____________________________________________
Telephone________________________________________
Nam e____________________________________________
Telephone________________________________________
Nam e____________________________________________
Telephone________________________________________
Nam e____________________________________________
Telephone________________________________________
10. Form Prepared by_____________________________________________________________________________
P osition______________________________________________________________________________________________
A gency/lnstitution_____________________________________________________________________________________
Telephone________________________________________
D ate_____________________________________________
___________________________________________
Name of Financial Institution
Page 3 of 7
Complete the remaining questions if suspected criminal activity involves probable loss (before reimbursement or recovery)
of $10,000 or greater and in all cases, regardless of amount, involving an executive officer, director, principal shareholder
of the institution within the meaning of Regulation O of the Board of Governors.
11.
Give a Chronological and Complete Account of the Suspected Violation, (if necessary, use continuation sheet)
0
°
°
o
0
0
Relate key events to documents and attach copies of those documents.
Explain who benefited, financially or otherwise, from the transaction, how much, and how.
Furnish any explanation of the transaction provided by the suspect and indicate to whom and when it was given,
Furnish any explanation of the transaction provided by any other person.
Indicate where the suspected violation took place (e.g., main office, branch, other).
Recommend any further investigation that might assist law enforcement in fully examining the potential violation.
12. Indicate Whether the Suspected Violation Appears to Be an Isolated Incident or Whether It Relates to Other
Transactions. (Explain)
Page 4 of 7
Name of Financial Institution
13. Exclusion of Information from the Referral. Has any pertinent information been excluded from this referral as a re
sult of any legal or other restraint?
□ Yes
□ No
If so, w hy?_________________________________________________________________________________________ _
Have the excluded information or documents been segregated for later retrieval?
□ Yes
□ No
14. Witnesses. List any witness who might have information about the suspected violation and describe their position
or employment. Indicate if they have been interviewed, (if necessary, use continuation sheet)
Name
Position
Address
Telephone
Interviewed
Yes
□
1.
2.
3.
4.
5.
□
□
□
□ '
No
□
□
□
□
□
15. Discovery and Reporting
a.
Who discovered the suspected violation and when?
b.
Has the suspected violation been reported to the Board of Directors?
c.
Has the Board of Directors taken action?
d.
□ Yes
□ No
□ Yes
□ No
By whom and when?
If so, what and when?
Has the suspected violation previously been reported to federal or local law enforcement or to any federal or
state supervisory agency?
□ Yes
□ No If so, by whom, to whom, and when?
16. Loss
a. Amount of loss known $ ______________________________________________________
b. Restitution b y ________________________________________________________________
In the amount of $ ___________________________________________________________
c. Name of Applicable Surety Bond Company______________________________________
d. Amount of Bond $ ____________________________________________________________
e. Amount of deductible $ _______________________________________________________
f. Was claim filed?
□ Yes
□ No
___________________________________________
g. Settlement by Surety company to date $ ________________________________________
h. Total restitution and settlement to date $ _______________________________________
i. Net loss (after subtracting any amounts paid in the form of restitution or settlement) $
j. Is additional loss suspected?
□ Yes
□ No (If yes, explain)
k.
Has the suspected violation had a material impact on or otherwise affected the financial soundness of the
institution?
□ Yes
□ No (If yes, explain)
Page 5 of 7
Name of Financial Institution
Continuation Sheet
* Item No.
Remarks
r
Page 6 of 7
Criminal Statutes
<}
1&U.S.C. 2
“ To aid, abet, counsel, command, induce or procure” the commission of federal offense.
18 U.S.C. 201
Bribery of public officials, including elected representatives, jurors and employees of any department or
agency of the federal government, and witnesses in official proceedings; e.g., anyone who gives, offers or
promises anything of value to a public official or a witness with the intent to influence that person’s official
functions.
18 U.S.C. 215
Kickbacks, bribes. Makes it unlawful for any officer, director, employee, agent or attorney to solicit, accept
or give anything of value in connection with any transaction or business of any financial institution.
18 U.S.C. 371
Conspiracy of two or more persons to either commit a federal offense or to defraud the United States (or
any agency of the U.S.).
18 U.S.C. 656
Theft, embezzlement or misapplication of bank funds, willfully, by an officer, director, agent or employee
of a bank, with intent to injure or defraud the bank. Can infer intent to injure from the fact of injury or from
acts knowingly done in reckless disregard for the interests of the bank.
18 U.S.C. 709
False advertising or misuse of words “ National,” “ Federal Reserve,” “ Deposit Insurance,” etc., to convey
impression of federal agency affiliation.
18 U.S.C. 1001
General false statements statute—knowingly and w illfully falsifying or concealing a material fact or mak
ing a false statement or making or using false writing knowing it to be false.
■
False entries and reports or statements, including material omissions, with intent to injure or defraud the
bank, the Board of Governors (or OCC or FDIC), bank examiners or other individuals or companies.
18 U.S.C. 1005
18 U.S.C. 1014
False statement (oral or written) e.g., loan application, made knowingly for the purpose of influencing any
bank whose deposits are federally insured, upon any application, purchase agreement, commitment, loan
(or any change or extension of same) including w illfully overvaluing land, property or security.
18 U.S.C. 1029
Credit Card fraud—knowingly and with intent to defraud, produce, use or traffic in counterfeit access devices.
18 U.S.C. 1030
Computer fraud— knowingly accessing a computer without authorization, or using it for unauthorized pur
poses, including obtaining information contained in records of financial institutions.
18 U.S.C. 1341
Mail fraud—scheme or artifice to defraud that makes use of the Postal Service.
18 U.S.C. 1343
Wire fraud—scheme or artifice to defraud using transmission by wire, radio or TV for the purpose of carry
ing out the scheme.
18 U.S.C. 1344
Bank fraud—scheme or artifice to defraud a federally insured institution or take money funds, credits, as
sets, securities or other property by misrepresentation.
18 U.S.C. 1621
Perjury/false statement made under oath (if false statement is not made under oath, individual may still
be prosecuted under 18 U.S.C. 1001 or 1014).
18 U.S.C. 1951
18 U.S.C. 1961
Racketeer Influenced and Corrupt Organizations (“ RICO” ) statutes. Investing in any enterprise affecting in
terstate commerce if the funds for the investment are derived from “ a pattern of racketeering activity” (these
activities are defined to include: murder, drug dealing, bribery, robbery, extortion, counterfeiting, mail fraud,
wire fraud, embezzlement from pension funds, obstruction of criminal investigations, fraud in the sale of
securities, etc.).
18 U.S.C. 2113
Bank robbery and incidental crimes, including taking of any property in excess of $100 in value belonging
to a bank, savings and loan or credit union, and receiving, possessing or disposing of same.
31 U.S.C. 5311
31 C.F.R. 103
Currency Transactions/Bank Secrecy Act.
15 U.S.C. 78dd
Foreign Corrupt Practices Act of 1977. Payment of anything of value to any foreign official, foreign political
party or candidate or “ any other person where the American corporation knows or has reason to know the
thing of value would be offered to a foreign official, foreign political party or candidate for foreign political
office.”
'
15 U.S.C. 78ff
Criminal violations of securities laws.
15 U.S.C. 78x
Criminal penalty provisions of securities laws.
12 U.S.C. 1847a
W illful violations of the Bank Holding Company Act and the Board of Governors’ regulations promulgated
thereunder.
■
DigitizedI for FRASER
Page 7 of 7
Instructions
Introduction: The purpose of this form is to provide a con
sistent means by which financial institutions can make refer
rals of known or suspected criminal activity perpetrated
against the institutions whether by insiders or those outside
the institution. The form will provide an effective means by
which appropriate law enforcement and supervisory authori
ties will be made aware of known or suspected criminal ac
tivity. Institutions should use care in filling out this form and
should ensure that it is filled out in as complete a manner
as practicable under the circumstances.
THE FOLLOWING INSTRUCTIONS SHOULD BE REFERRED
TO WHEN FILLING OUT THE ITEMS REFERENCED:
Item 1. State Member Banks use FDIC certificate number.
Bank Holding Companies use F.R. Y-6, F.R. Y-9 BHC Num
ber if available.
Item 2. As of end of most recent calendar quarter.
Item 3. Self-explanatory.
Item 4. Enter a check mark next to those descriptions in 4(a)
which most generally describe the nature of the criminal ac
tivity. Use the list of criminal statues provided on page 6 as
an aid to filling out item 4(b).
Item 5. Self-explanatory.
Item 6. Complete subparagraphs (a) through (g) on each in
dividual suspected of criminal activity. This list should in
clude primary suspects only. Individuals who may have
knowledge of the suspected criminal activity, but who are
not themselves suspected of being involved should be list
ed as witnesses under Item 14. Provide any additional details
known with respect to prior referrals or affiliations.
Item 7. Provide a brief narrative description of the activity
giving rise to the referral. For those filing the long version
of this form, details will be provided later in the form. The
purpose of this paragraph is to provide a summary descrip
tion of the overall transaction.
Items 12 through 16. Self-explanatory.
ADDITIONAL INSTRUCTIONS FOR EXAMINERS
Examiners should fill out this form whenever suspected crimi
nal activity has been identified in an institution and either
has not yet been reported by the institution or the referral
made by the institution is deemed to be inadequate. It is im
portant to note that the form should be filled out whenever
criminal activity is suspected; examiners are not required to
make any initial finding that such referrals would, if pursued,
result in a criminal conviction. That judgment will be made
by responsible law enforcement authorities. Any questions
regarding whether or not any particular activity would con
stitute a crime for purposes of making a criminal referral
should be resolved through communications with Board
Staff.
The purpose of this referral is to provide appropriate law en
forcement authorities with complete and accurate informa
tion relating to suspected criminal activity. All information
requested within the body of the form should be supplied at.
the time of the referral unless such information is not known
or can only be supplied at a later date by operation of the
Right to Financial Privacy Act. In filling out of this form, ex
aminers should avoid overly technical descriptions of trans
actions which might not be readily understood by law
enforcement authorities unfamiliar with banking operations.
DISTRIBUTION: If made by Financial Institution
1. Retain one copy in the institution’s files.
2. Send one copy to the Federal Reserve Bank in the
District where your financial institution is located.
3. Send one copy to the
nearest office of the FBI.
4. Send one copy to the nearest office of the U.S.
Attorney.
Items 8 through 10. Self-explanatory.
Item 11. This section of the referral is critical. It should be
as detailed as circumstances permit. The care with which this
section is written may make the difference in whether or not
the described conduct and its criminal nature are clearly un
derstood. The discussion points listed in this section are not
exhaustive. They should be covered, but to the extent an ad
ditional category should be addressed, it should be done
here. Feel free to use attachments or to continue the descrip
tion on a separate sheet. Include any suggestions for the in
terviewing of any witnesses, gathering of any documents or
methods of investigation which might prove useful in follow
ing up on the referral (e.g. tracing of proceeds).
DISTRIBUTION: If made by Federal Reserve Bank
1. Retain one copy in Reserve Bank file under name of
the financial institution.
2. Send two copies to the Board of Governors,
ATTENTION: Director, Division of Banking Supervision
and Regulation.
3. Send one copy to the
nearest office of the FBI.
4. Send one copy to the nearest office of the U.S.
Attorney.
@FedFRASER