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Proposal Defines New Crimes, Increases Penalties on Some Existing Crimes
MADISON — The number of options for prosecutors to charge criminals who commit crimes against financial institutions will triple and fines could double under a proposal supported by the Wisconsin Bankers Association.
Currently, an individual who commits a crime against a financial institution can be charged with only three options: theft, fraud or robbery. Penalties range from a Class A misdemeanor or a Class I, H or G felony. Fines range from $10,000 to $25,000 and jail time that ranges from nine months to 10 years in jail.
This proposal creates a new subchapter of property crimes against financial institutions where individuals can be charged with nine different crimes with the maximum penalty being a Class E felony, which includes a maximum fine of $50,000 and 15 years in jail.
“This legislation provides more options for prosecutors and stiffer penalties for criminals,” said Kurt Bauer, president/CEO of the Wisconsin Bankers Association. “We are confident that this law will serve as a greater deterrent to criminals who commit crimes against financial institutions.”
The Senate Housing and Financial Institutions Committee will hold a hearing on Senate Bill 571 on Wednesday and the Assembly Financial Institutions Committee will hold a hearing on the companion bill, Assembly Bill 986, on Thursday. The bill’s cosponsors are state Sen. Cathy Stepp (R-Sturtevant) and state Rep. Jean Hundertmark (R-Clintonville).
As criminals become more technologically savvy, there is a greater need to add a new category of crimes for prosecutors to charge these individuals, Bauer said. For example, mail or wire fraud would be added as a new crime and the penalty for the crime would increase to a Class H Felony. Penalties and jail time would also increase for crimes such as bank robbery and extortion.
“Prosecutors will no longer need to search for a crime that in the end will not have a stiff enough penalty,” Bauer said.
Other crimes added include:
* Concealment of collateral: knowingly concealing, removing or disposing of, or converting to one’s own use any property mortgaged to, pledged to, or held by a financial institution;
* Loan fraud: knowingly overvaluing or making a false statement concerning any land, security or other property for the purpose of influencing a financial institution to take any action in connection with a loan or loan application; and
* Organizer of financial crimes: committing three or more financial crimes within an 18-month period in concert with a person whom the actor supervises, organizes, finances or manages.
There is also a provision in the bill to fine businesses such as check cashing stores that do not obtain a community currency exchange license. The bill would protect consumers from individuals who set up illegal check cashing storefronts. The bill has a maximum $2,000 penalty and nine-month jail term for individuals that violate the licensing or other requirements for community currency exchanges.
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The Wisconsin Bankers Association is the state’s largest financial industry trade association, representing 300 commercial banks and savings institutions, their nearly 2,300 branch offices and 27,000 employees.
