Navigating Mortgage Fraud Investigations After Receiving FBI Target Letters

Getting a target letter from the FBI can be an incredibly stressful and frightening experience. These letters inform you that you’re under investigation for suspected criminal activity – in this case, mortgage fraud. Your first reaction may be panic and wanting to contact the FBI right away to explain yourself. But take a deep breath – responding hastily could end up doing more harm than good. Here’s what you need to know about dealing with a mortgage fraud investigation and target letter from the feds.

What is a Target Letter?

A target letter from the Department of Justice or FBI means prosecutors believe you may have committed a crime they’re investigating^[6]. These letters are meant to convince you to cooperate with the investigation and possibly take a plea deal. They’ll outline what crime you’re suspected of, like mortgage fraud, and may try to scare you into thinking you’ll be charged unless you cooperate. But don’t let a target letter panic you into anything – getting one does not mean you’ll definitely be indicted^[6].

Why Do People Get Targeted?

In mortgage fraud investigations, target letters often go out to mortgage brokers suspected of falsifying documents like W-2s, pay stubs, and employment verifications to qualify unqualified buyers for loans^[5]. Others targeted may include buyers who lied on their loan applications, appraisers who inflated home values, or anyone else involved in mortgage fraud schemes designed to make money off unqualified buyers. You may have been caught up in someone else’s fraud without even knowing it.

What Should I Do After Getting a Letter?

If you receive a target letter, your best move is to immediately retain a lawyer experienced in federal investigations related to your alleged crime – like mortgage fraud^[3]. They can advise you on how to respond (or not respond) and protect your rights. Consider a few key steps:

• Don’t talk to investigators without your lawyer present
• Don’t try explaining yourself in writing either
• Have your lawyer find out details of the investigation
• Discuss defense strategies with your lawyer
• Follow your lawyer’s advice about whether to cooperate

Responding to federal investigators on your own seems like an easy way to clear things up, but it’s risky and can damage your case^[4].

What Are the Consequences if I’m Charged?

Mortgage fraud charges can vary based on your role in the crime. Consequences may include:

• Fines – Up to $1 million for individuals
• Prison time – Up to 30 years if the fraud is over $1 million
• Restitution – Repaying all money obtained illegally
• Asset forfeiture – Property and bank account seizures

These consequences make it vital to have an experienced federal defense lawyer on your side fighting the charges.

What Are Some Possible Defenses?

An attorney may be able to get charges dismissed or reduced by raising defenses like:

• You didn’t knowingly commit fraud
• You were entrapped by government informants
• You were only a minor participant, not a ringleader
• You have an otherwise clean record

An attorney can also negotiate with prosecutors for lesser charges or probation instead of prison time in exchange for cooperation.

I’m Worried About My Family/Job – What Now?

Being targeted for mortgage fraud can turn your life upside down. You may worry about:

• Telling your spouse and family
• Taking time off work for legal matters
• Colleagues finding out you’re under investigation

This stress is normal, but try not to let it consume you. Focus on mounting the best legal defense possible. Also, consider seeing a therapist or counselor to help cope with the emotional toll of being under federal investigation. Don’t go through it alone.

Take a Target Letter Seriously But Don’t Panic

Receiving a target letter is scary, but it’s not necessarily the end of the world. With an experienced federal defense lawyer advising you, it’s possible to get through the investigation and even defeat the charges. Don’t let fear push you into rash decisions – take a breath, get a lawyer, and start building your defense strategy.