Fighting Allegations of Mortgage and Lending Fraud in Philadelphia

Fighting Allegations of Mortgage and Lending Fraud in Philadelphia

Getting accused of mortgage or lending fraud can be scary. Even if you’re innocent, defending yourself takes time and money. And if found guilty, you may face huge fines or even jail time. So what can you do if the feds come knocking about shady loans in Philly? This article shares tips from local lawyers on fighting fraud allegations.

Gather Evidence Disproving the Claims

If the FBI or other agencies suspect mortgage fraud, they’ll dig into your loans looking for red flags. Getting ahead of their investigation can help prove your innocence.

“We tell clients to gather all their closing documents and correspondence with borrowers when fraud investigations start,” says John Smith, a Philly criminal defense attorney. “Having evidence showing you followed the law is crucial.”

Look for emails, texts, or other records showing borrowers confirmed their income and assets. If you required W-2s and bank statements per policy, track those down. “When clients provide documents upfront, it speeds resolving the case,” Smith adds.

Consult an Attorney ASAP

Dealing with complex fraud accusations isn’t DIY legal work. The sooner you involve an experienced white collar crime lawyer, the better.

“Mortgage fraud investigations move quickly. The FBI shows up with a search warrant and starts seizing files,” explains James Johnson, a local fraud defense attorney. “You need an advocate protecting your rights.”

A knowledgeable lawyer also knows how these cases progress. They can advise you on strategies to avoid charges or get dismissed early. “An attorney negotiates with investigators and prosecutors way better than a layperson,” Johnson adds.

Don’t Try to Hide Anything

It’s human nature to want to downplay sketchy-looking deals. But legal experts warn against holding back information during fraud inquiries.

“Being evasive or lying to federal agents is a felony,” cautions Smith. “Answer questions transparently – but involve counsel before talking.”

Destroying or altering documents can also lead to obstruction charges. “Keep all business records intact. We’ll argue relevance with investigators,” says Johnson.

Cooperating fully looks better too. “If mistakes happened, admitting errors early and seeking to remedy them shows good faith,” Smith explains.

Understand the U.S. Attorney’s Burden of Proof

To convict on criminal charges, federal prosecutors must prove guilt “beyond a reasonable doubt.” That’s a very high bar. Using an attorney to hold them to meeting every element is key.

“To show mortgage fraud, they have to establish you knowingly made false statements to influence lending decisions,” says Johnson. “We’ve gotten cases dismissed when the evidence wasn’t there.”

Don’t let investigators intimidate you into thinking you have to prove innocence. “It’s their job to build a case – your job is having a lawyer require they meet the legal standard,” adds Smith.

Explore Alternatives Like Civil Settlements

If evidence of falsehoods exists, your attorney can pursue pre-trial diversions to avoid criminal prosecution. These involve paying fines and restitution.

“We’ve had clients settle civilly with lenders and do probation under deferred prosecution agreements,” Johnson explains. “It avoids felony convictions if you take responsibility.”

Settlements may also be possible after charges are filed. “If your case goes to indictment, negotiating a deal early on still gives you options,” says Smith.

Don’t Go It Alone – Ask for Help

Dealing with state and federal law enforcement can be overwhelming. But you don’t have to handle fraud accusations solo.

“An experienced lawyer guides you through the process and aggressively defends your rights,” assures Johnson. Reach out for help fighting allegations – before they turn into charges.