Ely

The United States appeals the dismissal of certain counts of an indictment charging the named defendants with various forms of fraud on Aaska Statebank (Statebank), a federally-insured bank of which they were directors. The district court ruled that the counts in question stated bad banking practices but did not charge crimes. Reviewing the sufficiency of the allegations in the indictment as a matter of law, and of course not determining the truth of the allegations, we agree with the district court that certain counts failed to charge one non-director with a crime but we also hold that otherwise the dismissed counts did sufficiently set forth crimes under 18 U.S.C. §§ 1344 and 2, § 1005 and § 371. Addressing a question of first impression in this circuit, we further hold that a charge of “reckless disregard” of bank property adequately charges the bank’s directors with a violation of § 1344. Accordingly, we reverse the judgment of the district court and reinstate the dismissed counts. We affirm the judgment of the district court that the indictment does not violate the constitutional prohibition against double jeopardy.

THE INDICTMENT

In the second superseding indictment of…