Understanding Federal Bank Fraud Charges in California

Being charged with bank fraud by federal prosecutors is serious business. These crimes carry stiff penalties and can ruin your finances and reputation. But what exactly constitutes bank fraud? And how might you fight the charges?

This article will explain common federal bank fraud schemes prosecuted in California. It will also discuss possible defenses and penalties so you understand what you’re up against.

Common Bank Fraud Schemes

Federal prosecutors in California charge bank fraud in connection with many types of financial crimes, including:

Check Fraud

This involves schemes like check forgery, check kiting, or writing bad checks. Check kiting is when you use money from a check that hasn’t cleared yet. If done systematically between bank accounts, it creates an illegal “float” of funds.

Credit Card Fraud

This includes things like making unauthorized charges on someone else’s credit card, using stolen credit card numbers, or using fake or altered cards.

Loan Fraud

Lying on a loan application about your income, assets, debts, or employment history can constitute federal bank fraud. Using forged or fake documents to get a loan is also illegal.

Mortgage Fraud

Lying on a mortgage application to qualify for a bigger loan is a common bank fraud scheme. Others include fraudulent flipping and using straw buyers.

Identity Theft

Stealing someone’s identity to access or steal funds from their bank accounts can lead to federal bank fraud charges.

Embezzlement

If you have access to an organization’s bank accounts and steal from those accounts, you could face embezzlement-related bank fraud charges.

Bribery/Kickbacks

Bribing a bank employee to open fake accounts or approve bad loans can qualify as federal bank fraud.

Penalties for Bank Fraud

Under 18 USC 1344, federal bank fraud charges can lead to:

• Up to 30 years in federal prison
• Restitution to any victims
• Steep fines up to $1,000,000
• Forfeiture of any assets involved in the fraud

Any prison sentence over 1 year also carries a potential 1 year of supervised release after imprisonment. Immigration consequences may also apply if you are not a U.S. citizen.

Defending Against Federal Bank Fraud Charges

Fighting federal bank fraud allegations in California requires skilled legal help. Some possible defenses include:

You Didn’t Knowingly Commit Fraud

Bank fraud requires you to knowingly execute or attempt to execute a scheme to defraud a bank or obtain money from a bank through false statements. If you can show you did not act with this criminal intent, you may be able to defeat the charges.

No Bank Was Defrauded

If the alleged victim was not actually a federally insured bank or financial institution, the federal bank fraud statute may not apply. The charges could potentially be dismissed on this basis.

No False Statements

If the prosecution cannot prove you made specific false statements or misrepresentations to a bank, this could weaken their case.

You Were Coerced

If you can demonstrate you were forced or coerced into committing bank fraud by threats of violence, this could be a defense. But you will need evidence to back up your coercion claim.