What Constitutes Bank Fraud? Ask the Supreme Court
Kevin Loughrin was prosecuted for stealing and altering checks,
using them to purchase items at retail stores, and then returning
the items to the stores for cash. He was convicted under subsection
(2) of the bank fraud statute, 18 U.S.C. 1344, which makes it a
crime to obtain any money or other property owned by or under the
custody or control of a financial institution "by means of
false or fraudulent pretenses, representations, or promises."
At trial, Mr. Loughrin had asked for a jury instruction that the
government was required to prove he acted with intent to defraud a
financial institution. The trial judge refused to give the
instruction, holding that intent to defraud someone (and obtain
money from a financial institution) was sufficient. On appeal in United States v. Loughrin, the U.S.
Court of Appeals for the Tenth Circuit agreed, although it noted
its decision was in conflict with the First, Second and
