Bank fraud is a serious offense that can have significant legal consequences. When it comes to mortgage applications, lying or providing false information is considered a form of bank fraud. Under Illinois law, bank fraud encompasses a range of illegal activities committed against financial institutions.
What is Bank Fraud
In Illinois, bank fraud is governed by state statutes, including the Illinois Financial Institution Fraud and Theft Act (720 ILCS 5/17-10). Under this law, bank fraud refers to knowingly engaging in deceptive practices or making false representations to obtain money, assets, or property owned or controlled by a financial institution. Lying on a mortgage application falls within the scope of bank fraud because it involves providing false information to a financial institution to secure a loan.
Typical Ways Mortgage Bank Fraud Occurs
Mortgage bank fraud can occur in various ways, and it often involves misrepresentations, omissions, or falsifications on loan applications. Some common methods include:
- Income Fraud: Applicants may overstate their income or create fictitious employment records to qualify for a higher loan amount.
- Occupancy Fraud: This occurs when an applicant misrepresents the property’s intended use, such as stating it will be a primary residence when it is intended for investment purposes only.
- Appraisal Fraud: Individuals may manipulate property appraisals to inflate the property’s value, enabling them to obtain a larger loan.
- Identity Theft: Fraudsters may use stolen identities to apply for mortgages, leaving innocent victims burdened with fraudulent loans.
Additional Charges Under Federal Law
Lying on a mortgage application can trigger additional charges under federal law. The most significant federal statute applicable to bank fraud is the federal bank fraud statute (18 U.S.C. § 1344). This law makes it a crime to knowingly execute a scheme or artifice to defraud a financial institution or obtain any of its assets fraudulently. If a mortgage application involves false statements or other fraudulent activities, federal prosecutors can bring charges under this statute.
Penalties for Bank Fraud Under Illinois Law and Federal Law
A conviction for bank fraud under Illinois law can result in severe penalties. In Illinois, bank fraud is typically classified as a Class 1 felony, punishable by imprisonment of up to 15 years and substantial fines. The specific penalties may vary depending on the circumstances of the case and the amount of money involved.
Under federal law, the penalties for bank fraud can be even more severe. Violators of the federal bank fraud statute may face imprisonment of up to 30 years and substantial fines. Additionally, the court can order restitution to compensate the financial institution for any losses suffered.
Glasgow & Olsson: Assisting Those Facing Mortgage Fraud Charges
If you or someone you know is facing charges related to mortgage bank fraud, seeking legal representation is crucial. The experienced attorneys at Glasgow & Olsson specialize in handling complex fraud cases and have a deep understanding of both Illinois law and federal statutes. We can provide personalized guidance, analyze the evidence, build a robust defense strategy, and protect your rights throughout the legal process. When you need an attorney, experience matters. Don’t wait. Contact the Glasgow & Olsson law firm for a confidential consultation.