Bank Fraud firms

Bank fraud is a criminal activity that is designed to deceive a financial institution or obtain money, assets, or other property through fraudulent conduct. The exact fine and punishment depend on the crime and the rules enforced by federal law. Let’s discuss this topic in detail.

 

What Is Bank Fraud?

 

Federal bank fraud is referred to as 18 18 U.S.C. § 1344. This law is very strict and categorizes it as a federal offense to knowingly execute or attempt to execute any plan to deceive a financial institution or to obtain money, funds, credits, assets, securities, or other property under a financial institution’s control through false or fraudulent representations or promises. This law is broad enough to cover multiple concerns related to banking fraud. A fraudulent scheme may include manipulation of accounts, transactions, loans, checks, or other banking activities.

 

Common Examples of Bank Fraud

 

Here are some common forms of banking fraud, listed for your awareness:

 

• Check fraud: Using counterfeit, altered, or fraudulent checks.
• Check kiting: Using checks between accounts to obtain funds that are not actually available.
• Loan fraud: Providing false information or documents to obtain a loan.
• Mortgage fraud: Using deceptive information or transactions to obtain mortgage financing.
• Account fraud: Using another person's banking account through deception or unauthorized access.
• False applications: Providing intentionally false information when applying for financial products.
• Fraudulent transfers: Using deceptive transactions to obtain or move money belonging to a financial institution.

 

What Does the Government Have to Prove?

 

A federal bank fraud prosecution requires proof of the existence of banking fraud as mentioned in the particular subsection of § 1344 being charged. Primarily, the statute categorizes prohibited conduct into two different categories. The first one is knowingly executing or attempting to execute a scheme to defraud a financial institution. The second one is obtaining property controlled by a financial institution through false or fraudulent pretenses, representations, or promises. These provisions play a crucial role in interpretation related to materiality, intent, and the precise nature of the alleged fraudulent scheme. This makes the government’s evidence highly important in determining the fulfillment of the statutory requirements.

 

How a Federal Bank Fraud Case Begins

 

It starts with the involvement of a bank, financial institution, customer, auditor, or another party identifying suspicious activity. After that, federal investigators investigate the suspected scheme to uncover all hidden details.

 

They may examine:

 

• Bank statements and transaction records
• Loan and mortgage documents
• Emails and electronic communications
• Computer or digital evidence
• Business records
• Tax and financial information
• Witness statements

 

If federal prosecutors have enough evidence, they may seek criminal charges.

 

Defending Against Bank Fraud Charges

 

Every person has been given a reasonable opportunity to represent their side, and a person accused of bank fraud is no exception. A defense lawyer may argue on points like whether the defendant knowingly participated in the alleged scheme, whether the government can establish the required intent, whether the evidence was lawfully obtained, or whether the charged conduct satisfies the applicable statutory requirements. It is recommended to hire an expert federal criminal defense lawyer who has expertise in financial and electronic devices.

 

Frequently Asked Questions (FAQs)

 

Is Bank Fraud a Federal Felony?

 

Yes, Bank fraud under 18 U.S.C. § 1344 is a federal criminal offense and can carry substantial imprisonment and financial penalties.

 

Can Someone be Charged with Bank Fraud Even if the Bank did not Lose Money?

 

Yes, a person can be charged with bank fraud even if the bank did not lose money. This is because the federal statute covers both schemes to defraud a financial institution and certain attempts to obtain property through fraudulent means.  

 

What Should Someone Do if They Are Being Investigated for Bank Fraud?

 

As soon as a person gets to know that they are the subject of a federal bank fraud investigation, their first step should be to discuss this matter with an expert federal criminal defense attorney to understand their legal rights and available options before giving any details to investigators. 

 

Conclusion

 

Bank fraud is a broad category which includes various types of deceptive financial conduct. It is a serious crime under federal law and attracts harsh penalties and fines. The application of any specific federal statutes primarily depends on the circumstances of each case, such as fraudulent loan applications and check schemes to sophisticated electronic transactions, and more. If anyone is facing such charges or being the subject of a bank fraud investigation, then they should immediately contact an expert bank fraud attorney.