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Answering FAQs About Federal Mortgage Fraud Charges in New York
Contents
- 1 Answering FAQs About Federal Mortgage Fraud Charges in New York
- 2 What is mortgage fraud?
- 3 What are the federal laws related to mortgage fraud?
- 4 How does the federal government investigate mortgage fraud?
- 5 What are the penalties for federal mortgage fraud charges?
- 6 What are some common defenses against mortgage fraud charges?
- 7 Should I accept a plea bargain or go to trial?
- 8 How can a lawyer defend against mortgage fraud charges?
- 9 What should I do if I’m being investigated for mortgage fraud?
- 10 Resources
Answering FAQs About Federal Mortgage Fraud Charges in New York
Dealing with federal mortgage fraud charges can be an incredibly stressful and confusing time. If you or someone you love is facing allegations of mortgage fraud in New York, you probably have a lot of questions about what to expect and how to navigate the legal process. This article aims to provide some answers to frequently asked questions about federal mortgage fraud charges in New York.
What is mortgage fraud?
Mortgage fraud refers to an intentional misstatement, misrepresentation, or omission relied on by a mortgage lender to fund, purchase, or insure a loan. There are a few main types of mortgage fraud:
- Application Fraud – Providing false information on a mortgage application to qualify for a loan, like overstating income or assets.
- Occupancy Fraud – Lying about how the property will be used, like saying you’ll live there when you really plan to rent it out.
- Valuation Fraud – Providing a fraudulent appraisal to make a property seem worth more than it is.
- Income/Employment Fraud – Lying about your employment status or income to appear qualified for a mortgage.
- Identity Theft – Using someone else’s identity to apply for a mortgage.
- Foreclosure Rescue Schemes – Agreeing to transfer title or make mortgage payments to someone who promises to prevent foreclosure.
There are a few key federal statutes that prosecutors use to charge mortgage fraud crimes:
- Wire Fraud – Using interstate wires to further a scheme to defraud a financial institution. This includes email, phone calls, faxes, etc. [18 U.S.C. § 1343]
- Bank Fraud – Knowingly executing or attempting to execute a scheme to defraud a financial institution. [18 U.S.C. § 1344]
- Mail Fraud – Using the mail to further a scheme to defraud. [18 U.S. Code § 1341]
- False Statements – Knowingly making false statements to HUD or a lending institution to influence a mortgage loan. [18 U.S.C. § 1010]
How does the federal government investigate mortgage fraud?
Federal agencies like the FBI, HUD, IRS, and FinCEN work together to investigate mortgage fraud schemes. They use resources like Suspicious Activity Reports (SARs) filed by banks, forensic audits, confidential informants, public records, and complaints.Investigations can take months or even years. The government will subpoena bank records, interview witnesses, and gather evidence to build their case.
What are the penalties for federal mortgage fraud charges?
Penalties vary based on the specific charges, but can include:
- Up to 30 years in prison
- Massive fines – $1 million or more
- Restitution to victims like banks or homeowners
- Forfeiture of assets obtained through the fraud
- Supervised release after prison
What are some common defenses against mortgage fraud charges?
Some potential defenses include:
- You lacked intent – the misstatements were unintentional mistakes, not fraud.
- You were entrapped – law enforcement induced you to commit fraud you otherwise wouldn’t have.
- Duress – you were somehow forced or coerced into committing the fraud.
- Statute of limitations – too much time has passed between the alleged crime and the charges being filed.
- Constitutional violations – your rights were violated in the investigation or arrest.
Should I accept a plea bargain or go to trial?
Whether to accept a plea bargain or go to trial is a critical decision that should be made carefully with the guidance of your attorney. Consider factors like:
- Likelihood of winning at trial – Is there strong evidence against you?
- Potential penalty if convicted – A plea may cap your sentence.
- Benefits of taking responsibility – Judges may be more lenient.
- Time and cost of trial – Trials can take years and cost a fortune.
- Risk of cooperating – Snitching on others could put you in danger.
How can a lawyer defend against mortgage fraud charges?
A skilled federal criminal defense lawyer can protect your rights and build the strongest defense possible. They will:
- Analyze the evidence and applicable laws.
- Attempt to get charges dismissed.
- File motions to suppress illegally obtained evidence.
- Work to negotiate an acceptable plea bargain if in your best interest.
- Thoroughly prepare for trial, investigate facts, and cross-examine witnesses.
- Present evidence and make arguments to show reasonable doubt.
- Advocate for the lowest possible sentence if convicted.
Having an experienced lawyer makes all the difference in fighting federal mortgage fraud allegations. Don’t go it alone.
What should I do if I’m being investigated for mortgage fraud?
If you learn you’re under investigation for mortgage fraud, it’s essential to exercise your right to remain silent and immediately contact a qualified attorney. Never speak to investigators without your lawyer present. An attorney can negotiate with prosecutors on your behalf, protect you from self-incrimination, and start building your defense strategy right away.Dealing with federal charges is frightening, but the legal process moves slowly. There are options and defenses available, so try to stay calm. With an experienced federal criminal defense lawyer advising you, it’s possible to overcome mortgage fraud allegations and avoid harsh penalties. Don’t hesitate to seek help.