Criminal Defense Lawyers

Answering FAQs About Federal Bank Fraud Charges in New York City

Answering FAQs About Federal Bank Fraud Charges in New York City

So you or someone you know has been charged with federal bank fraud in New York City. That can be really scary and confusing. You probably have a ton of questions about what these charges mean and what could happen next. This article aims to answer some of the most frequently asked questions we get from clients facing federal bank fraud accusations in NYC.

What exactly is federal bank fraud?

Simply put, federal bank fraud involves schemes to try to obtain money or property from a bank or other financial institution through intentional misrepresentations or outright deception. Common examples include check kiting, creating fake documents to get loans, using stolen credit cards or account numbers, or convincing a bank employee to improperly hand over cash.

The key is that there must be both an attempt to defraud and actual or potential harm to the bank itself. Not every lie or exaggeration to a bank rises to the level of criminal bank fraud. There are often viable defenses, which we’ll discuss more below.

How serious are federal bank fraud charges?

Federal bank fraud charges are very serious. If convicted at trial or via guilty plea, you’re facing 0-30 years in federal prison under the main bank fraud statute, 18 USC §1344. Fines up to $1 million can also be imposed. Other related charges may carry additional penalties.

With that said, the actual average federal sentence for bank fraud in 2019 was just 16 months imprisonment. And many defendants receive probation or home confinement instead of prison, especially first-time offenders accused of smaller frauds.

An experienced federal bank fraud lawyer can advocate for reduced charges or sentencing departures and variances to limit incarceration exposure. Let’s discuss some of those options next.

What are some potential defenses to federal bank fraud accusations?

While the potential penalties are severe, federal bank fraud charges can be beat. Even if the facts aren’t great, an attorney may be able to get charges dismissed pre-trial, win at trial, or negotiate a favorable plea bargain.

Here are some of the most common defenses we use to fight federal bank fraud accusations in NYC:

• No intent to defraud: As noted above, criminal bank fraud requires you to have intended to deceive the bank and expose them to actual or potential monetary harm. If there’s evidence you acted in good faith or the bank wasn’t realistically put at risk, charges should be dismissed.
• No actual loss occurred: Relatedly, if the bank or creditors suffered no tangible financial damage from your actions, that weakens the government’s case. We can argue the conduct doesn’t rise to the level deserving felony punishment.
• You were an unwitting participant: Perhaps you were tricked into unknowingly assisting with someone else’s bank fraud scheme. If you can show you were duped and lacked criminal intent, charges may be dropped.
• Illegal search issues: If evidence was collected via an unconstitutional search or seizure, it may be excluded and the case dismissed as a result. This is especially common in white collar cases relying heavily on documents obtained from questionable raids.
• Statute of limitations expired: Federal bank fraud generally must be charged within 10 years. If the allegations are based on older conduct, the case may be time-barred.

Those are just a few examples. An attorney can also scrutinize the strength of the prosecution’s evidence and witnesses for holes to attack at trial. Or negotiate with prosecutors for reduced charges, probationary sentences, or pretrial diversion programs in lieu of prison.

Don’t lose hope if you or a loved one are accused. There are always options in federal criminal cases.

What should I do if federal agents want to interview me about potential bank fraud accusations?

If federal agents from the FBI, IRS, SEC, or other agencies contacts you about a bank fraud investigation, politely decline to speak with them and immediately call a lawyer instead. I cannot stress this enough.

Federal agents are legally allowed to lie and make false promises to get you to talk. They may claim they just need “your side of the story” or act like the case is no big deal, but those are tricks. Anything you say will be used against you. So keep quiet and let your attorney handle all communications.

Ideally, we can intervene early to convince investigators that charges aren’t warranted yet based on the evidence they have. Or negotiate an agreement to avoid charges entirely. Don’t take that chance away by speaking without counsel present.

How can a federal bank fraud lawyer defend me in NYC?

As you can see, skilled legal advocacy makes a huge difference in federal bank fraud cases. The stakes are extremely high given the steep sentencing ranges, so you need someone in your corner who knows this area of law inside out.

An experienced NYC federal bank fraud attorney will thoroughly analyze the prosecution’s evidence and legal theories to exploit any weaknesses. We’ll also dig into your personal and financial background for mitigating facts that cast doubt on criminal intent.

And we’ll negotiate aggressively with prosecutors behind the scenes to have charges reduced or dismissed pre-trial. Or limited post-conviction at sentencing.

We also understand the complex federal sentencing guidelines inside out. That allows us to estimate your sentencing exposure if convicted and develop compelling arguments for downward departures.

On top of that, we have great working relationships with federal judges and prosecutors in NYC. Those connections allow us to resolve cases as favorably as possible under the circumstances.

So if you or someone close to you has been targeted by bank fraud accusations in New York’s Southern or Eastern federal Districts, don’t delay in reaching out for skilled legal help. This isn’t the type of case you want to try handling alone against the full force of the federal government.