Mortgage Fraud Overview

Posted by & filed under Crimes Defined, Criminal Statutes, White Collar Crime.

 

LOUISIANA MORTGAGE FRAUD La.R.S.  14:71.3

It is unlawful for a person, in connection with residential mortgage lending activity, to knowingly do any of the following:

(1)  Employ a device, scheme, or artifice with intent to defraud.

(2)  Make an untrue statement of material fact with intent to defraud.

(3)  Receive any portion of the purchase, sale, or loan proceeds, or any other consideration paid or generated in connection with the closing of a residential mortgage loan when the recipient knows that the proceeds or other funds were paid as a result of a violation of this Section.

 

PENALTIES

A person who violates the provisions of this Section shall be imprisoned, with or without hard labor, for not more than 10 years, or may be fined not more than $100,000, or both.

In addition to the penalties provided in Paragraph (1) of this Subsection, a person convicted under the provisions of this Section shall be ordered to make full restitution to the victim and any other person who has suffered a financial loss as a result of the offense.  If a person ordered to make restitution pursuant to this Section is found to be indigent and therefore unable to make restitution in full at the time of conviction, the court shall order a periodic payment plan consistent with the person’s financial ability.

 

Federal Mortgage Fraud

Under federal law, mortgage fraud is punishable by up to 30 years in federal prison or $1,000,000 fine, or both. It is illegal for a person to make any false statement regarding income, assets, debt, or matters of identification, or to willfully overvalue any land or property, in a loan and credit application for the purpose of influencing in any way the action of a financial institution.

Some of the applicable Federal criminal statutes which may be charged in connection with Mortgage Fraud include:

18 U.S.C. § 1001 – Statements or entries generally
18 U.S.C. § 1010 – HUD and Federal Housing Administration Transactions
18 U.S.C. § 1014 – Loan and credit applications generally
18 U.S.C. § 1028 – Fraud and related activity in connection with identification documents
18 U.S.C. § 1341 – Frauds and swindles by Mail
18 U.S.C. § 1342 – Fictitious name or address
18 U.S.C. § 1343 – Fraud by wire
18 U.S.C. § 1344 – Bank Fraud
42 U.S.C. § 408(a) – False Social Security Number

 

Legal Assistance

If you or a loved one has been arrested or indicted for Mortgage Fraud, Contact our firm for a consultation with a New Orleans White Collar Crime Attorney.

 

 

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