Chapter 10 - Crimes, Offenses And Penalties
CHAPTER 10 - CRIMES, OFFENSES AND PENALTIES
ARTICLE 1 - MISCELLANEOUS OFFENSES
13-10-101. General penalty.
Anyofficer, director, owner or employee of a financial institution who willfullyand knowingly violates any provision of this act for which a penalty is notexpressly provided is guilty of a misdemeanor punishable by a fine of not lessthan one hundred dollars ($100.00) nor more than one thousand dollars($1,000.00), imprisonment for not more than one (1) year, or both.
13-10-102. False statements.
(a) Any owner, director, officer or employee of a financialinstitution who makes any false entry or fails to make new entries of matterspertaining to the affairs of the financial institution in the books orstatements of the financial institution with intent to injure or defraud thefinancial institution or deceive any officer of the financial institution orany person appointed to examine the affairs of the financial institution isguilty of a felony punishable by a fine of not less than one thousand dollars($1,000.00) nor more than five thousand dollars ($5,000.00), imprisonment fornot less than one (1) year nor more than ten (10) years, or both.
(b) Any officer, director, owner or employee of a financialinstitution who willfully and knowingly subscribes, makes or causes to be madeany false statement or report to the state banking commissioner, or subscribesor exhibits false papers with intent to deceive any person authorized toexamine the affairs of the financial institution, or states or publishes anyfalse report or statement of the financial institution is guilty of a felonypunishable by a fine of not less than one thousand dollars ($1,000.00) nor morethan five thousand dollars ($5,000.00), imprisonment for not less than one (1)year nor more than ten (10) years, or both.
(c) Any person who willfully and knowingly makes, circulates ortransmits any false statement or rumor to another which is directly orindirectly derogatory to the financial condition or affects the solvency orfinancial standing of a financial institution doing business in Wyoming isguilty of a misdemeanor punishable by a fine of not more than seven hundred fiftydollars ($750.00), imprisonment for not more than six (6) months, or both.
13-10-103. Fraudulent insolvency.
(a) Repealed by Laws 1985, ch. 162, 2.
(b) Any officer or director of a financial institution whoparticipates in a fraudulent insolvency of a financial institution is guilty ofa misdemeanor punishable by a fine of not less than one hundred dollars($100.00) nor more than one thousand dollars ($1,000.00), imprisonment for notless than one (1) month nor more than one (1) year, or both.
13-10-104. Wrongful certification, issuance or delivery of instruments,preferences or borrowing.
(a) Any owner, director, officer, agent or employee of afinancial institution who willfully certifies a check on the account of thedrawer of the check which does not contain sufficient funds to pay the check isguilty of a misdemeanor punishable by a fine not to exceed one thousand dollars($1,000.00).
(b) Any owner, director, officer or employee of a financialinstitution who issues or delivers any certificate of deposit, draws any check,draft or bill of exchange, makes any acceptance, or signs any note, bond,draft, bill of exchange, mortgage, judgment or decree without the approval ofthe board of directors is guilty of a felony punishable by imprisonment for notless than one (1) year nor more than twenty (20) years.
(c) Any officer, director or employee of a bank who violatesthe provisions of W.S. 13-3-103 or 13-3-203 is guilty of a felony punishable bya fine of not less than one thousand dollars ($1,000.00) nor more than fivethousand dollars ($5,000.00), imprisonment for not less than one (1) year normore than five (5) years, or both.
13-10-105. Repealed by Laws 1982, ch. 75, 5.
13-10-106. Transactions exceeding liability limits; concealing orfailing to report transactions.
(a) Any officer, director or agent of a financial institutionwho makes or delivers any guarantee or endorsement on behalf of the financialinstitution whereby the financial institution may become liable upon any of thefinancial institution's discounted notes, bills or obligations in an amountexceeding the amount of loans or discounts which the financial institution maymake under this act is guilty of a misdemeanor punishable by a fine of not lessthan five hundred dollars ($500.00) nor more than one thousand dollars($1,000.00), imprisonment for not less than one (1) month nor more than one (1)year, or both.
(b) Any director of a financial institution who concurs in anyvote or act of the board of directors or any director of the financialinstitution whereby it is intended to make a loan or discount to a director ofthe financial institution or upon an instrument on which a director is liable,exceeding the amount allowed under this act, is guilty of a misdemeanorpunishable by a fine of not less than five hundred dollars ($500.00) nor morethan one thousand dollars ($1,000.00), imprisonment for not less than one (1)month nor more than one (1) year, or both.
(c) Any officer, director or employee of a financialinstitution who intentionally conceals any discounts or loans, purchases ofsecurities or sale of financial institution securities by the financialinstitution from the officers or directors of the financial institution, or whoknowingly fails to report all discounts, loans or purchases of securities bythe financial institution to the board of directors when required to do so bylaw, is guilty of a misdemeanor punishable by a fine of not less than fivehundred dollars ($500.00) nor more than one thousand dollars ($1,000.00),imprisonment for not less than one (1) month nor more than one (1) year, orboth.
13-10-107. Failure to report or cooperate with state bankingcommissioner.
(a) Repealed By Laws 1998, ch. 64, 2.
(b) Any bank failing to submit reports to the state bankingcommissioner as required by W.S. 13-3-701(d) is subject to a civil penalty oftwenty-five dollars ($25.00) per day for each day the reports are delayed. Anytrust company failing to submit reports to the commissioner as required by W.S.13-5-110(a)(i) is subject to a civil penalty of twenty-five dollars ($25.00)per day for each day the reports are delayed.
(c) Any officer, director or employee of a financialinstitution or bank holding company who willfully and knowingly fails to reportany transfer of ownership interests of the financial institution or a bankholding company to the commissioner as required by this act is guilty of amisdemeanor punishable by a fine of not more than one thousand dollars($1,000.00), imprisonment for not less than six (6) months nor more than one(1) year, or both.
(d) Repealed By Laws 1999, ch. 42, 3.
(e) Any person refusing or obstructing access to the statebanking commissioner to any books, records or papers, refusing to furnish anyrequired information, or hindering a full examination of the books, accounts,papers and finances of a financial institution is guilty of a felony punishableby a fine of not less than one thousand dollars ($1,000.00), imprisonment for aperiod of not less than one (1) year, or both.
(f) A financial institution shall keep books and accounts in aconvenient manner so as to enable the examiner to readily ascertain the truecondition of the financial institution. Any financial institution that refusesor neglects to open and keep books and accounts as prescribed by the statebanking commissioner is subject to a penalty of three hundred dollars ($300.00)per day for each day the financial institution neglects or fails to open andkeep the books and accounts after receiving written notice from the statebanking commissioner.
13-10-108. Operating bank or savings and loan association or trustcompany without complying with provisions.
(a) Any person, firm or corporation excluding national bankswhich conducts a banking business or which advertises, issues, circulates orexhibits any card, paper or sign using the term "bank","banker", "banking" or words of similar import withoutcompliance with this act and following ten (10) days notice given by the statebanking commissioner, is guilty of a misdemeanor punishable by a fine of notless than one hundred dollars ($100.00) nor more than one thousand dollars($1,000.00), imprisonment for not more than six (6) months, or both.
(b) Any person doing business or soliciting or attempting to dobusiness in Wyoming for any savings and loan association not chartered by thefederal government which has not complied with the provisions of this act isguilty of a misdemeanor punishable by a fine not exceeding one thousand dollars($1,000.00), imprisonment for not more than thirty (30) days, or both.
(c) Any person, firm or corporation which conducts a trustbusiness without compliance with this act and following ten (10) days noticegiven by the commissioner, is guilty of a misdemeanor punishable by a fine ofnot less than one hundred dollars ($100.00) nor more than one thousand dollars($1,000.00), imprisonment for not more than six (6) months, or both.
13-10-109. Refusal to exhibit stock ledger or register.
Anyofficer of a financial institution refusing to exhibit the stock ledger orregister of the financial institution to any person entitled to inspect theledger or register is guilty of a misdemeanor punishable by a fine not toexceed fifty dollars ($50.00).
13-10-110. Improper procurement of loans; permitting accounts to beoverdrawn.
Anyofficer, director, agent or employee of a financial institution who asks for,receives or agrees to receive any compensation, reward or personal advantagefor procuring or endeavoring to procure for any person, firm or corporation anyloan from or the purchase or discount of any instrument by the financialinstitution, or for permitting any person, firm or corporation to overdraw anyaccount with the financial institution, is guilty of a felony punishable by afine of not less than one thousand dollars ($1,000.00) nor more than fivethousand dollars ($5,000.00), imprisonment for not less than one (1) year normore than ten (10) years, or both.
13-10-111. Financial involvement by state banking commissioner andemployees.
Thestate banking commissioner and employees of the state banking commissioner'soffice shall not become indebted to any financial institution under statesupervision nor shall engage or be interested in the sale of securities ornegotiation of loans for others with any financial institution under statesupervision. Violation of this section constitutes grounds for removal fromoffice.
13-10-112. Prosecution of criminal violations.
The district attorney for the county wherea criminal violation of this act occurs shall prosecute the case upon complaintof the commissioner.
ARTICLE 2 - ADMINISTRATIVE ENFORCEMENT ACTIONS
13-10-201. Definitions.
(a) As used in this article:
(i) "Bank holding company" means a bank holdingcompany as defined in W.S. 13-1-101 which owns or controls a Wyoming financialinstitution;
(ii) "Critically undercapitalized" means the paid-incapital, retained earnings and undivided profits of the Wyoming financialinstitution are less than two percent (2%) of the total assets of the financialinstitution;
(iii) "Prompt corrective action" means any action thefederal deposit insurance corporation is authorized to take with regard to astate chartered bank under 12 U.S.C. 1831o(d) through (i);
(iv) "Wyoming financial institution" means any bank,savings and loan association or trust company chartered or organized under thelaws of Wyoming.
13-10-202. Informal enforcement actions; joint enforcement actions.
(a) Notwithstanding any other provision of law, thecommissioner may enforce the provisions of this act by informal actions such asboard resolutions, letter agreements, memoranda of understanding or supervisoryagreements.
(b) Notwithstanding any other provision of law, thecommissioner may enter into an agreement and take action with the appropriatefederal regulatory agency to enforce jointly all federal and state lawsapplicable to Wyoming financial institutions and bank holding companies.
13-10-203. Cease and desist orders; Wyoming financial institutions;bank holding companies notice; opportunity for hearing.
(a) After notice and opportunity for hearing, the commissionershall issue a final cease and desist order to a Wyoming financial institutionif the Wyoming financial institution or any officer, director, employee oragent of the institution is violating or is about to violate any state statuteor rule relating to financial institutions or is engaging or is about to engagein an unauthorized or unsafe and unsound practice. After notice and opportunityfor hearing, the commissioner shall issue a final cease and desist order to abank holding company if the bank holding company or any officer, director,manager, employee or agent of the bank holding company is violating or is aboutto violate any state or federal statute or rule relating to bank holdingcompanies or is engaging or is about to engage in an unauthorized or unsafe andunsound practice relating to Wyoming financial institutions owned or controlledby the bank holding company.
(b) Before issuing a final cease and desist order, thecommissioner shall serve notice of intent to issue the order upon the Wyomingfinancial institution or the bank holding company. The notice shall be inwriting and shall contain the information required by W.S. 13-10-208(a). Theproposed order shall direct the Wyoming financial institution or the bankholding company to discontinue the violations of law or the unsafe and unsoundpractices and may direct the Wyoming financial institution or the bank holdingcompany to take any action the commissioner deems necessary to correct thealleged violation or wrongful practice.
(c) The Wyoming financial institution or the bank holdingcompany may request a hearing on the proposed order before the board inaccordance with W.S. 13-10-208(b). If the Wyoming financial institution or thebank holding company does not request a hearing in writing within theprescribed time period, the proposed order shall become a final cease anddesist order and the commissioner shall serve the final order upon the Wyomingfinancial institution or the bank holding company.
13-10-204. Temporary cease and desist order; Wyoming financialinstitutions; bank holding companies; service.
(a) If the commissioner believes the actions of a Wyomingfinancial institution or of any officer, director, employee or agent of theinstitution pose an immediate threat to the safety and soundness of thefinancial institution or to the interests of the depositors, creditors orshareholders of the financial institution, he may issue a temporary cease anddesist order to the financial institution pending final action on the proposedcease and desist order issued pursuant to W.S. 13-10-203.
(b) If the commissioner believes the actions of a bank holdingcompany or of any officer, director, manager, employee or agent of the bankholding company pose an immediate threat to the safety and soundness of aWyoming financial institution owned or controlled by the holding company or tothe interests of the depositors, creditors or shareholders of the financialinstitution, the commissioner may issue a temporary cease and desist order tothe bank holding company pending final action on the proposed cease and desistorder issued pursuant to W.S. 13-10-203.
(c) The temporary order shall be in writing and shall be servedupon the Wyoming financial institution or the bank holding company. Thetemporary order shall take effect upon service and shall remain in effect untilthe commissioner issues the final cease and desist order or the board dismissesthe proposed cease and desist order after hearing.
(d) On or after the effective date of the temporary order, theattorney general, upon request from the commissioner, may apply to the districtcourt for the county in which the Wyoming financial institution is located forenforcement of the temporary order. The application for enforcement shall begiven precedence over other cases pending in court and shall in every way beexpedited.
13-10-205. Removal of officer or director; notice; opportunity forhearing.
(a) After notice and opportunity for hearing, the commissionermay issue a final order removing an officer or director of a Wyoming financialinstitution or a bank holding company if the officer or director:
(i) Has violated any state statute or rule relating tofinancial institutions in performing the duties of his office;
(ii) Has engaged or participated in any unsafe and unsoundpractice in performing the duties of his office; or
(iii) Has been convicted of or has pleaded guilty or nolocontendere to a crime involving dishonesty or breach of trust.
(b) Before issuing a final removal order, the commissionershall serve notice of intent to issue the order upon the officer or director.The notice shall be in writing and shall contain the information required byW.S. 13-10-208(a).
(c) The officer or director may request a hearing on theproposed order before the board in accordance with W.S. 13-10-208(b). If theofficer or director does not request a hearing in writing within the prescribedtime period, the proposed order shall become a final removal order and thecommissioner shall serve the final order upon the officer or director.
13-10-206. Temporary suspension order; stay of order; enforcement.
(a) If the commissioner believes the actions of the officer ordirector pose an immediate threat to the safety and soundness of a Wyomingfinancial institution or to the interests of the depositors, creditors orshareholders of the financial institution, the commissioner may suspend theofficer or director pending final action on the proposed removal order issuedpursuant to W.S. 13-10-205. The temporary suspension order shall be in writingand shall be served upon the officer or director together with the notice ofintent to issue a removal order as provided in W.S. 13-10-205(b). The temporaryorder shall take effect upon service. The officer or director may apply to thedistrict court for the county in which the Wyoming financial institution islocated for a stay of the temporary suspension order. The application for stayshall be given precedence over other cases pending in court and shall in everyway be expedited. The court shall grant the stay only if the officer ordirector shows he will be irreparably harmed unless the stay issues and thereis a substantial likelihood he will prevail on the merits. The temporarysuspension order shall remain in effect until the commissioner issues the finalremoval order, the board dismisses the proposed removal order or the courtstays enforcement of the temporary suspension order.
(b) On or after the effective date of a temporary suspensionorder issued pursuant to this section, the attorney general, upon request fromthe commissioner, may apply to the district court for the county in which theWyoming financial institution is located for enforcement of the temporarysuspension order. The application for enforcement shall be given precedenceover other cases pending in court and shall in every way be expedited.
13-10-207. Civil penalties; amount; factors; notice; payment.
(a) In addition to other administrative or criminal remediesauthorized in this act, the commissioner, after notice and opportunity forhearing, may assess a civil penalty against a Wyoming financial institution, anofficer or director of a Wyoming financial institution or a bank holdingcompany if the Wyoming financial institution, officer or director or bankholding company:
(i) Is found to have violated any state statute or rulerelating to financial institutions or to have engaged in any unsafe and unsoundpractice, whether willfully or as a result of negligence, incompetence orrecklessness; or
(ii) Is found to have violated or failed to comply with anyprovision of a lawful order issued by the commissioner pursuant to this act.
(b) The civil penalty for violating state statute or rulerelating to financial institutions or engaging in an unsafe and unsoundpractice shall not exceed five thousand dollars ($5,000.00) per violation. Thecivil penalty for violating or failing to comply with a lawful order of thecommissioner shall not exceed five thousand dollars ($5,000.00) per day foreach day of the violation or noncompliance.
(c) In determining the amount of the civil penalty to beassessed, the commissioner shall consider:
(i) The seriousness of the violation or the unsafe and unsoundpractice;
(ii) The good faith of the Wyoming financial institution,officer or director or the bank holding company;
(iii) The history of previous violations or unsafe and unsoundpractices by the Wyoming financial institution, officer or director or the bankholding company;
(iv) The financial resources of the Wyoming financialinstitution, officer or director or the bank holding company; and
(v) Any other matters the commissioner deems appropriate.
(d) Before issuing a final order imposing a penalty, thecommissioner shall serve notice of intent to issue the order upon the Wyomingfinancial institution, officer or director or the bank holding company to beassessed. The notice shall be in writing and shall contain the informationrequired by W.S. 13-10-208(a), the amount of the civil penalty for eachviolation and the total amount of the civil penalty to be assessed.
(e) The Wyoming financial institution, officer or director orthe bank holding company may request a hearing on the proposed order before theboard in accordance with W.S. 13-10-208(b). If the Wyoming financialinstitution, officer or director or the bank holding company does not request ahearing in writing within the prescribed time period, the proposed order ofassessment shall become a final order of assessment and the commissioner shallserve the final order of assessment upon the Wyoming financial institution,officer or director or the bank holding company.
(f) The Wyoming financial institution, officer or director orthe bank holding company shall pay the civil penalty assessed by a final orderin full to the commissioner within thirty (30) days of receipt of the finalorder of assessment. Any civil penalty received under this section shall bedeposited into the county public school fund of the county in which theviolation occurred. Notwithstanding any other provision of law, no Wyomingfinancial institution or bank holding company shall indemnify or insure anyofficer or director of a Wyoming financial institution against civil penaltiesassessed under this section.
13-10-208. Procedures for enforcement actions; service of notice;content of orders; contested case proceedings; appeal.
(a) All notices and orders required to be served by thecommissioner under this article shall be served by certified mail returnreceipt requested to the last known address of the Wyoming financialinstitution, the bank holding company or officer or director who is the subjectof the order or shall be served as provided by the Wyoming Rules of CivilProcedure. Notice of a proposed order issued by the commissioner under thisarticle shall include:
(i) A statement of the grounds for issuing the proposed order,including a citation to the statute or rule involved, if any;
(ii) A statement of the facts in support of the allegations;
(iii) A statement informing the Wyoming financial institution,the bank holding company or officer or director subject to the proposed orderof the right to a hearing on the order before the state banking board and thatfailure to timely request a hearing will result in the order becoming final;and
(iv) A copy of the proposed order.
(b) A request for hearing on a proposed order issued by thecommissioner under this article shall be in writing and shall be submitted tothe commissioner no later than seven (7) days after receipt of the notice ofintent from the commissioner. The board shall hold the hearing no later thanfifteen (15) days after receipt of the request for hearing, unless the Wyomingfinancial institution, the bank holding company or officer or director subjectto the proposed order requests an extension of time for good cause shown.
(c) A hearing on a proposed order issued under this articleshall be a contested case hearing conducted in accordance with the WyomingAdministrative Procedure Act. After the hearing, the board shall issue findingsof fact and conclusions of law and a final decision either confirming ordismissing a proposed order. The board shall confirm a proposed order only ifthe board finds by a preponderance of the evidence that grounds exist underthis article for issuing the order. Otherwise, the board shall dismiss theproposed order. In confirming a proposed order imposing a civil penalty, theboard may modify the amount of the penalty assessed after considering thefactors in W.S. 13-10-207(c). If the board confirms a proposed order it shallbecome a final order.
(d) The commissioner shall serve a final order under thisarticle upon the Wyoming financial institution, the bank holding company andofficer or director who is the subject of the order. The final order shall takeeffect upon service and shall remain in effect until the commissioner or thecourt terminates the final order. The Wyoming financial institution, the bankholding company or officer or director who is the subject of the order mayappeal the issuance of a final order in accordance with the WyomingAdministrative Procedure Act.
(e) On or after the effective date of a final order under thisarticle, the attorney general, upon request from the commissioner, may apply tothe district court of the county in which the Wyoming financial institution orthe bank holding company is located for enforcement of the final order. Theapplication for enforcement shall be given precedence over other cases pendingin court and shall in every way be expedited.
13-10-209. Prompt corrective action; definition.
In addition to the other administrativeenforcement actions authorized in this act, the commissioner shall take promptcorrective action against a Wyoming financial institution as necessary toprotect the safety and soundness of the Wyoming financial institution in theevent the financial institution becomes critically undercapitalized. Forpurposes of this section, "Wyoming financial institution" does notinclude trust companies.