Bank Fraud — Federal Law

Posted by & filed under Criminal Statutes.

 

New Orleans Federal Defense Attorney

 

This past week, a former LSU football player pled guilty to Bank Fraud in the US Court for the Eastern District of Louisiana.  Lucky for him, Robert Packnett avoided jail time and was sentenced to 5 years federal probation.  He was also ordered to pay approximately $233,000 in restitution.  His indictment to Bank Fraud arose from the practice of Mortgage Fraud.  According to the indictment, between 2011 and 2012 he submitted doctored documents to First NBC Bank overstating his income. He also applied for at least six mortgages, refinanced mortgages and commercial lines of credit. In order to qualify for these mortgages, Packnett had to submit proof of income; he submitted documentation overstating the monthly rental payments he received from tenants, as well as claiming income from properties that were in fact vacant.

 

Bank Fraud — 18 USC § 1344

What is Federal Bank Fraud?

 

Whoever knowingly executes, or attempts to execute, a scheme or artifice-

 

(1) to defraud a financial institution; or

(2) to obtain any of the moneys, funds, credits, assets, securities, or other property owned by, or under the custody or control of, a financial institution, by means of false or fraudulent pretenses, representations, or promises.

The criminal law elements of a violation of 18 U.S.C. § 1344 (1) bank fraud which must be contained in an indictment and must be proved by the government beyond a reasonable doubt are as follows:

 

  • The defendant knowingly executed or attempted to execute a scheme or artifice to defraud.
  • The defendant did defraud or attempt to defraud the financial institution.
  • The defendant used a material misrepresentation or concealment of a material fact as part of the scheme or attempted scheme.
  • The financial institution was insured or chartered by the federal government.

The criminal law elements of a violation of 18 U.S.C. § 1344 (2) bank fraud which must be contained in an indictment and must be proved by the government beyond a reasonable doubt are as follows:

  • The defendant knowingly executed or attempted to execute a scheme or artifice to obtain the money (or other property) owned by, or under the custody or control of, a financial institution.
  • The defendant used materially false or fraudulent pretenses, representations, or promises in the execution or attempted execution of the scheme.
  • The financial institution was insured or chartered by the federal government.

 

What is the penalty for federal bank fraud?

 

Fine of not more than $1,000,000 or imprisoned not more than 30 years, or both.

 

 

There are a number of other federal statutes prohibiting fraud against banks or other similar financial institutions, including, but not necessarily limited to, the following:

  • 18 U.S.C. § 1004. Certification of checks.
  • 18 U.S.C. § 1005. Bank entries, reports and transactions.
  • 18 U.S.C. § 1006. Federal credit institution entries, reports and transactions.
  • 18 U.S.C. § 1007. Federal Deposit Insurance Corporation transactions.
  • 18 U.S.C. § 1013. Farm loan bonds and credit bank debentures.
  • 18 U.S.C. § 1014. Loan and credit applications generally; renewals and discounts; crop insurance.
  • 18 U.S.C. § 1029. Fraud and related activity in connection with access devices.
  • 18 U.S.C. § 1032. Concealment of assets from conservator, receiver, or liquidating agent of financial institution.

 

 

If you or a loved one has been indicted for Bank Fraud call White Collar Defense Attorney.

 

 

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