Dallas Federal Bank Fraud Lawyer | North Texas Criminal Defense
Dallas Federal Bank Fraud Lawyer
There is fraud, and then there is fraud against a financial institution. Both are criminal offenses, but federal bank fraud is a separate offense to knowingly “defraud a financial institution” or “obtain any of the moneys, funds, credits, assets, securities…of a financial institution by means of false or fraudulent pretenses.”
Federal Bank Fraud Statute
18 USC 1344 states that a federal bank fraud offense can result in up to 30 years in prison and a maximum $1 million fine. This statute is used to charge bank executives and officers who knowingly permit bank resources to be distributed on false grounds or deceptive representations by loan applicants.
It’s also used to prosecute non-bank participants in similar schemes, such as mortgage fraud schemes involving inflated loans to purchase homes, mobile homes, or other real property. The schemers split the excess cash.
What can be prosecuted as Federal Bank Fraud?
Almost any falsity within the lending process could become the basis for a federal investigation and prosecution, including false statements on loan applications, using appraisers to inflate values, and incentivizing inspectors to overlook defects.
If you are being investigated for federal bank fraud, don’t delay. Contact a Dallas federal bank fraud lawyer with Varghese Summersett immediately. Our team has more than four decades of combined experience fighting fraud cases.
What is considered a financial institution for purposes of Bank Fraud?
The definition of financial institutions is found in 18 USC 20. Financial institutions in bank fraud prosecution can include any institution insured under the FDIC, such as credit unions, federal home loan banks, Farm Credit Systems, small business investment companies, and some foreign banks.
Many transactions within financial institutions involve a lot of personnel, including loan officers, title prepares, and a slew of other bank employees who may handle any financial transaction.
Each person who handled a financial transaction could be a target or a witness in an investigation, even if they are not part of a fraud scheme.
It’s vital for anyone requested for questioning by federal or state law enforcement officials to contact an experienced Dallas federal bank fraud lawyer to determine if they have any legal exposure.
Furthermore, attorneys need to take a proactive approach if an investigation begins, including gathering information as to what crimes the investigators suspect occurred and reviewing all pertinent documentation.
What should you do if an investigator reaches out about bank fraud?
It is critically important for people wrapped up in an investigation to determine a strategy that either involves gathering materials to demonstrate non-participation in a scheme or, in the alternative, cooperating with investigators to avoid prosecution or mitigate criminal exposure.
However, many people in this situation speak with investigators, believing they only need to explain their way out of trouble. This is not a wise move.
Doing this overlooks the reality that agents are adept at interrogating and making people comfortable to start talking. Seek the advice of a respected Dallas federal bank fraud lawyer before speaking with law enforcement.
Take note: The most important advice you should take from this article is: DON’T TALK TO INVESTIGATORS.
What are the penalties for bank fraud in Dallas?
Under the U.S. Sentencing Guidelines, the “loss amount” in a bank fraud case directs the most likely range of punishment. The loss amount is the total value of the alleged fraud.
About 60 to 80% of federal sentences are within the guideline range.
The guidelines in USSG 2b1.1 lays out the offense levels and corresponding penalties.
The base offense level is 7 because 18 USC 1344 carries a possible sentence of more than 20 years. Depending on the loss amount, the offense level can be enhanced by up to 30 levels.
Other enhancements include:
- Potential increases for more than 10 victims
- Causing substantial hardship
- Use of sophisticated tactics, or
- Specific enhancements for receiving more than $1 million from a financial institution.
If the loss amount exceeds $6,500, the offense level increase is as follows:
| Loss (apply the greatest) | Increase in Level |
|---|---|
| (A) $6,500 or less | no increase |
| (B) More than $6,500 | add 2 |
| (C) More than $15,000 | add 4 |
| (D) More than $40,000 | add 6 |
| (E) More than $95,000 | add 8 |
| (F) More than $150,000 | add 10 |
| (G) More than $250,000 | add 12 |
| (H) More than $550,000 | add 14 |
| (I) More than $1,500,000 | add 16 |
| (J) More than $3,500,000 | add 18 |
| (K) More than $9,500,000 | add 20 |
| (L) More than $25,000,000 | add 22 |
| (M) More than $65,000,000 | add 24 |
| (N) More than $150,000,000 | add 26 |
| (O) More than $250,000,000 | add 28 |
| (P) More than $550,000,000 | add 30 |
It’s also important to remember that financial schemes are often prosecuted as conspiracies under federal law.
The agreement itself is the activating element, and all conspirators’ activities can be combined to calculate the loss amount.
For instance, multiple false transactions or loans can be assembled to generate one singular total loss amount that could apply to various people within the scheme. This doesn’t always accurately reflect the participation level of each specific defendant.
Federal Sentencing in Fraud Cases
In federal fraud cases, the judge’s decision on the sentence is heavily influenced by the federal sentencing guidelines. These guidelines have become stricter following the Enron scandal, as there was a concern that white-collar criminals were receiving lenient punishments. The guidelines aim to ensure that the punishment for fraud aligns with the severity of the crime. Loss is a primary driver for the recommended sentence guidelines in these types of cases.
The guidelines calculation in a fraud case takes into account several factors. The first and most significant factor is the loss amount. If the loss amount exceeds one million dollars, it often leads to a sentence of more than three years for a typical fraud case. It is important to note that the loss amount is not based on the money gained by the offender or the actual losses suffered by victims. Instead, it is calculated based on the amount that a reasonable person in that situation could have foreseen the victims losing.
In addition to the loss amount, the guidelines consider other characteristics of the crime. For instance, the number of victims plays a role in determining the recommended sentence. If there were numerous victims affected by the fraud, it can enhance the severity of the recommended punishment. Furthermore, if the offender abused a position of trust to carry out the fraudulent activity, such as exploiting their role in an organization, it can also result in an increased sentence as per the guidelines.
The federal sentencing guidelines provide a framework for judges to determine the appropriate punishment, there is still room for judicial discretion. Some judges recognize the need for proportionality in sentencing, while others may strictly adhere to the guidelines. Therefore, the actual sentence imposed in a fraud case can vary depending on the judge’s interpretation and application of the guidelines.
What is the federal statute of limitations for bank fraud?
The federal statute of limitations for bank fraud is generally five years.
When Should I Hire a Dallas Federal Bank Fraud Lawyer?
As soon as you suspect you’re either directly or indirectly part of a bank fraud investigation, you should contact a criminal defense attorney at Varghese Summersett.
Our Dallas Federal Bank Fraud Lawyers include Board Certified specialists and former prosecutors who know how the government builds a case.
We defend against allegations of white-collar crimes, including bank fraud.
Our experience as former federal prosecutors gives us an insight into how to best attack the government’s case.
For a complimentary consultation, call us at 214-903-4000 or online.
