Most people think of bank fraud as someone hacking into an account or stealing money from a financial institution. While those situations can lead to federal charges, the law covers much more than these kinds of dramatic potential headlines.
For example, in some cases, an individual may face allegations after submitting false financial information, using counterfeit checks or participating in a scheme to obtain money from a bank through deception.
What is federal bank fraud?
Federal bank fraud involves knowingly carrying out or attempting to carry out a scheme to defraud a financial institution or to obtain money, assets or property under the bank’s control through false or misleading representations.
The offense is governed by federal law because it affects federally insured banks and the nation’s financial system. Examples of conduct that may attract federal charges include:
- Submitting false information on a loan or credit application
- Depositing counterfeit or altered checks
- Using stolen identities to open bank accounts or obtain loans
- Creating fake financial documents to qualify for financing
- Participating in mortgage or business loan fraud
- Check-kiting schemes that artificially inflate account balances
- Working with others to deceive a financial institution for financial gain
Not every banking mistake is a crime. Federal prosecutors must show that the person acted knowingly and intended to deceive the financial institution.
Does intent matter?
Intent is one of the most important issues in a federal bank fraud case. For example, an honest accounting error or accidental omission on a financial document is not automatically bank fraud.
On the other hand, intentionally providing false income information to secure a loan or hiding significant financial facts to obtain approval could support criminal charges if prosecutors believe there was a deliberate effort to mislead the bank.
If you believe you are under investigation or have already been charged with federal bank fraud, seeking legal guidance as early as possible can help to protect your rights.