United States v. Weitzel

Background

A federal official called the Comptroller of the Currency can take control of a troubled national bank and appoint a receiver to manage its assets and operations under Rev. Stats. § 5234. In this case, the receiver named Weitzel was indicted under Rev. Stats. § 5209 for embezzlement and making false entries, a statute that punishes a bank’s president, director, cashier, teller, clerk, or “agent.” A demurrer to the indictment was sustained in the trial court, and the case reached this Court under the Criminal Appeals Act of March 2, 1907.

Reasoning

The central question was whether a receiver appointed by the Comptroller counts as an “agent” of the bank for purposes of § 5209. The Court explained that a receiver is an officer of the United States, not an officer of the bank: he gives a bond, pays money to the U.S. Treasurer, reports to the Comptroller, and is represented by the United States attorney. The Court used ordinary meaning and the nearby words in the statute to conclude that “agent” was intended to refer to persons appointed by the bank itself. The opinion noted historical drafting choices, the later 1879 law addressing officers of the United States, and warned against expanding criminal statutes by judicial intent.

Real world impact

The result means prosecutors cannot rely on § 5209 to charge a federal receiver as a bank “agent” for embezzlement. Other statutes or later laws must be used to address misconduct by federal receivers or United States officers. The Court also left open whether a stockholder-elected liquidating agent would qualify as an “agent.”