United States v. Corbett

Background

A bank cashier, Corbett, and two bank directors, Newman and McGill, were indicted for making false entries in reports sent to the Comptroller of the Currency. The indictment alleged the false entries were made with intent to injure and defraud the bank and to deceive an agent appointed to examine the bank — specifically the Comptroller. The trial court quashed portions of the indictment that charged intent to deceive the Comptroller and sustained a demurrer challenging the sufficiency of the counts. The defendants sought direct review focused on the meaning of the criminal statute, Rev. Stat. §5209.

Reasoning

The Court addressed whether the phrase "any agent appointed to examine" in §5209 includes the Comptroller. Looking to related provisions that require reports to the Comptroller and to the Comptroller’s supervisory powers, the Court held the phrase is broad and embraces both the Comptroller and subordinate examiners. The Court rejected a narrow technical reading of the criminal statute that would frustrate its purpose. On the demurrer, the Court explained that intent may be alleged generally and that a jury must decide whether officers acted with intent to injure the bank, even if the false entries showed the bank in a better condition.

Real world impact

The ruling allows criminal charges for false official reports made to the Comptroller and permits juries to find intent to injure even when reports appeared favorable. The Court reversed the lower court’s quashing and dismissal and sent the case back for trial on those issues.

Dissents or concurrances

Two Justices (McKenna and Day) disagreed that the Comptroller is within the words "any agent," but they joined the opinion in other respects.