Committee hears testimony on bill to toughen penalties for banking fraud

Senator Crawford on behalf of the bill sponsor presented the Senate committee substitute for Senate Bill 98 to the Committee on Financial Institutions, saying the proposal would strengthen penalties for banking-related fraud.

The bill sponsor told the panel the measure "will actually put more teeth in fraud, banking fraud," and described growing losses banks attribute to fraud. The bill would "spell out the different levels of penalties for different offenses," the sponsor said, and the presentation closed with an invitation for questions.

The bill drew supportive testimony from two industry witnesses. David Kent, a registered lobbyist for the Missouri Bankers Association, told the committee, "We're in full support, and we thank the senator for carrying the bill." Ray Bozarth, a registered lobbyist for the Missouri Credit Union Association, said, "Fraud is a big deal and this will give us another tool in the toolbox." No members of the public testified in opposition or for informational purposes during the hearing.

Committee leadership did not take a formal vote during the hearing; the session concluded after testimony. The record shows the committee received the sponsor's presentation and two letters of support in-person; no committee action or referral was recorded on the transcript provided.

The hearing provided limited substantive debate on specific statutory language or penalties; sponsors and witnesses framed the bill as a tool to address reported increases in fraud losses at financial institutions. Future committee materials or next scheduled meetings will be needed to show any amendments, votes, or referrals to other committees.