UNITED STATES of America, Plaintiff-Appellee, v. Larry Joseph LEWIS, Defendant-Appellant

Larry Joseph Lewis appeals his jury conviction on twelve counts of bank fraud under 18 U.S.C. § 1344 and two counts of wire fraud under 18 U.S.C. § 1343 . This appeal requires us to resolve a statutory construction issue of first impression — whether a state chartered, non-federally insured branch of a foreign bank is subject to the bank fraud statute. We also consider Lewis’ challenge to jury instructions defining “intent to defraud” under the bank and wire fraud statutes. We have jurisdiction over this timely appeal pursuant to 28 U.S.C. § 1291 , and we reverse.

I.

In August, 1984 twenty-seven-year-old Larry Lewis became manager of the Portland, Oregon branch of the Hong Kong and Shanghai Bank (“HKSB”), a title he would hold until his resignation in June, 1988. Lewis, whose previous position at HKSB was limited to supervising tellers and assisting in import/export loans, had no prior experience in granting loans or in managing a bank. With his promotion came the weighty task of improving the revenues of the singularly unprofitable Portland branch.

Shortly after becoming branch manager, Lewis made a large authorized loan to Financial Reserve Group (“FRG”)- He soon learned that…