Yes, it is a Federal crime.
"A. General rule. A Federal Reserve examiner is subject to the same
investment prohibitions as other System employees. These prohibitions,
which are uniform throughout the System, are set forth in each Reserve
Bank's code of conduct. In general, an examiner, and his or her
spouse, and minor child may not own or control a debt or equity
interest in a depository institution or its affiliate, with certain
limited exceptions, as described in the uniform code of conduct."
"EXAMINATION PERSONNEL--Investment Policy, Borrowing Prohibitions,
Recusal from Examinations and Inspections" Federal Reserve
http://www.federalreserve.gov/boarddocs/srletters/2005/SR0502a1.pdf
"In addition, it is a federal crime for you to participate in Bank
matters in which you have a financial interest. A financial interest
is anything that could result in a financial benefit to you or to
certain people whose interests are imputed to you, including your
spouse, minor child, general partner, or an organization in which you
serve as an officer, director, trustee, or employee. A financial
interest can include ownership of stock, an interest in a business or
property, or future or current outside employment.
Prohibited Financial Interests. In general you are prohibited from
holding stock or debt securities of any bank, thrift, other depository
institution, or their affiliates. You will be regarded as holding any
such interest owned by your spouse or minor child. Staff members with
access to Class I FOMC information are subject to additional
investment restrictions."
"Code of Conduct Summary" Federal Reserve Bank of Minneapolis
http://minneapolisfed.org/info/career/code.cfm?js=0#conf
The crime appears in "Sec. 208. Acts affecting a personal financial
interest" U. S. Code Online
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=browse_usc&docid=Cite:+18USC208.
"(a) The punishment for an offense under section 203, 204, 205, 207,
208, or 209 of this title is the following:
(1) Whoever engages in the conduct constituting the offense
shall be imprisoned for not more than one year or fined in the
amount set forth in this title, or both.
(2) Whoever willfully engages in the conduct constituting the
offense shall be imprisoned for not more than five years or fined in
the amount set forth in this title, or both.
(b) The Attorney General may bring a civil action in the appropriate
United States district court against any person who engages in conduct
constituting an offense under section 203, 204, 205, 207, 208, or 209 of
this title and, upon proof of such conduct by a preponderance of the
evidence, such person shall be subject to a civil penalty of not more
than $50,000 for each violation or the amount of compensation which the
person received or offered for the prohibited conduct, whichever amount
is greater. The imposition of a civil penalty under this subsection does
not preclude any other criminal or civil statutory, common law, or
administrative remedy, which is available by law to the United States or
any other person.
(c) If the Attorney General has reason to believe that a person is
engaging in conduct constituting an offense under section 203, 204, 205,
207, 208, or 209 of this title, the Attorney General may petition an
appropriate United States district court for an order prohibiting that
person from engaging in such conduct. The court may issue an order
prohibiting that person from engaging in such conduct if the court finds
that the conduct constitutes such an offense. The filing of a petition
under this section does not preclude any other remedy which is available
by law to the United States or any other person."
"Sec. 216. Penalties and injunctions" U. S. Code Online
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=browse_usc&docid=Cite:+18USC216
Sincerely,
Wonko
Search terms: "bank examiner" criminal financial interest; "bank
examiner" criminal conflict of interest equity; "bank examiner" ethics
stock holdings |
