Opinion ID: 665997
Heading Depth: 2
Heading Rank: 3

Heading: Credit Worthiness of Dr. Howard

Text: 29 Henderson's final sufficiency attack goes to count two: misapplication of bank funds in violation of 18 U.S.C. Sec. 656. This count is based on Henderson's role in securing the 1985 FB & T loan for Dr. Howard. Henderson argues that because Dr. Howard was a credit worthy borrower, there can be no violation of section 656. Again, we disagree. 30 In United States v. Saks, 964 F.2d 1514, 1519 (5th Cir.1992), this court held that the financial well being of the borrower would not prevent a conviction for bank fraud under 18 U.S.C. Sec. 1344. In support of this conclusion, the court approvingly cited cases from other circuits, including United States v. Walker, 871 F.2d 1298 (6th Cir.1989). Walker involved a conviction for misapplying bank funds. The following excerpt is particularly appropriate: 31 In this case, evidence of Hastings' and Hollaway's credit worthiness and their understanding of the obligation to repay was irrelevant, as the trial court held. Mr. Walker arranged these loans for his own benefit, concealing his interest in them from other bank officials. With these facts, the government adequately established Walker's intent to defraud the bank. The fact that the loans were otherwise good loans, and that the named borrowers understood their obligation to repay the loans if Walker defaulted on them, is irrelevant because Walker personally benefited from the transactions at issue. 32 Walker, 871 F.2d at 1307. We adopt the reasoning of the Sixth Circuit and hold that the credit worthiness of Dr. Howard was irrelevant to the misapplication of bank funds charge against Henderson.