Opinion ID: 12210
Heading Depth: 2
Heading Rank: 2

Heading: Financial Institution Fraud

Text: 22 Crowe alleges that certain monies in one of Henry's bank accounts actually belonged to him; specifically, he asserts that Henry was merely holding those funds in trust for him. Crowe claims, therefore, that when Henry wrote checks on the funds he was holding for Crowe, he committed financial institution fraud. For a claim of financial institution fraud to succeed, it must be established that the acts alleged exposed the custodial bank to the risk of loss, i.e., ... to civil liability. United States v. Briggs, 965 F.2d 10, 12-13 (5th Cir.1992) (citing United States v. Lemons, 941 F.2d 309, 315-316 (5th Cir.1991)), cert. denied, 506 U.S. 1067, 113 S.Ct. 1016, 122 L.Ed.2d 163 (1993); see also United States v. Holley, 23 F.3d 902, 908 (5th Cir.), cert. denied, 513 U.S. 1043, 115 S.Ct. 635, 130 L.Ed.2d 542 (1994), and cert. denied, 513 U.S. 1083, 115 S.Ct. 737, 130 L.Ed.2d 639 (1995). Crowe has failed to explain how Henry, in writing checks on a bank account in Henry's name, could have exposed the custodial bank to liability. The district court correctly ruled that plaintiff had presented no evidence to support a finding of financial institution fraud as a predicate act for RICO liability. Nonetheless, because the evidence of mail and wire fraud is sufficient to establish a pattern of racketeering activity, the grant of summary judgment as to the underlying RICO claim will be reversed. 23