Mortgage While Under Indictment.

At Spodek Law Group, we represent individuals who are under investigation for mortgage fraud, among other alleged crimes. Unfortunately, people mistakenly believe that an indictment is a conviction, or that an indictment is the same as a conviction. There is a massive difference. The most important of which is the fact that an indictment is an accusation. It establishes nothing about your guilt or innocence, and it is merely the starting gun for the government’s case. However, when facing a federal indictment for mortgage fraud, you also have to consider the risk of asset forfeiture. Forfeiture is an additional proceeding against your assets that can take place prior to, or concurrent with, the criminal proceedings. Forfeiture proceedings can target accounts, property, and allegedly tainted funds that are involved in the case. These proceedings can precede the criminal charges in many cases, and in some cases, the forfeiture proceedings can happen without charges being filed. When the government files for asset forfeiture, there is the very real risk of the government obtaining an order to restrain those assets. If the assets in question include your bank accounts, this could immediately make it difficult to pay your mortgage and handle other ordinary household expenses. If the property itself is targeted, you may face loss of title and other consequences, which will obviously make paying the mortgage far less pressing.

Why Immediate Advice from Defense Counsel is Important

The risk of facing federal indictment also includes the risk of facing asset forfeiture, so involving a lawyer as early as possible is always smart. Once an indictment is handed down, several options for resolution are gone forever. When you retain defense counsel during the investigation, your lawyer can identify and take advantage of options that may not be available once the indictment comes. Additionally, your lawyer will be able to immediately begin working to protect your assets and fight any attempts at forfeiture. At Spodek Law Group, we also strongly recommend that you do not speak to federal investigators without counsel present. Investigators will always try to gain information about you and your assets, and they will always try to convince you that you have nothing to fear if you just tell the truth. However, it is also important to understand that you can decline to answer investigators’ questions while still retaining the ability to consult with defense counsel and protect your rights and other options as a defendant.

How does federal mortgage fraud become criminal charges?

There is no standalone offense of “mortgage fraud” under the federal criminal statutes. Instead, prosecutors will charge a defendant’s conduct under several different federal statutes which carry substantial criminal penalties. A federal mortgage fraud indictment typically includes charges such as:

• False statements or reports to a federally insured lending institution. This is a violation of 18 U.S.C. § 1014 which covers making false statements, misrepresentations, and material omissions on loan applications and related documents. Penalties under Section 1014 can include 30 years in prison and fines of up to $1 million. The U.S. Attorney’s Office also commonly pursues charges of bank fraud against those alleged to have obtained mortgage financing through fraudulent means. Bank fraud is a federal offense under 18 U.S.C. § 1344. This statute covers attempts to execute a “scheme or artifice” to defraud a financial institution, or to obtain property owned by a financial institution by means of false or fraudulent pretenses. Penalties for bank fraud are substantial as well, and a defendant can face 30 years in federal prison and substantial fines (up to $1 million). While bank fraud is one of the most frequent charges in federal mortgage fraud cases, prosecutors can also charge defendants with mail fraud (under 18 U.S.C. § 1341) or wire fraud (under 18 U.S.C. § 1343). Wire fraud is a common charge in mortgage fraud cases because these cases almost invariably involve the transmission of misrepresentations and other fraudulent communications via electronic means. A wire fraud conviction under 18 U.S.C. § 1343 ordinarily carries a maximum prison sentence of 20 years, but the maximum increases to 30 years and a fine of up to $1 million when the offense affects a financial institution; those penalties generally apply per count. In many cases, it will not be possible for the prosecutor to charge the defendant with only one of these crimes. For example, a single fraudulent transaction can trigger all three of the federal statutes discussed above. In many cases, a single transaction will trigger multiple counts under any or all of these statutes. This increases the potential for a lengthy federal prison sentence and makes it crucial that a defendant invokes the advice of experienced defense counsel early on. Finally, the U.S. Sentencing Guidelines play an important role in determining the potential penalties facing a defendant who is facing a federal mortgage fraud indictment. Under the U.S. Sentencing Guidelines, the appropriate punishment is typically based on the monetary value of the alleged offense (i.e., the amount of loss). As a result, the higher the loss amount, the higher the offense level, and the longer the resulting prison sentence. In most cases, reducing the potential loss amount is one of the key strategies for defense counsel who represent defendants in federal criminal cases.

What legal paths remain after an indictment is returned?

Even after an indictment is returned, several possibilities remain on the table. Dismissal and acquittal in criminal trials are not uncommon. Prosecutors make mistakes and present cases that fall apart as soon as they are scrutinised. In fact, in some cases, the legal path leading to dismissal is completely certain. For example, if a defendant is the victim of identity theft, then the prosecutor may realize that he or she has the wrong person. In the majority of cases, a defendant will proceed to trial. At trial, the prosecution has the burden of proof. If the prosecutor fails to prove the alleged fraud and its associated elements beyond a reasonable doubt, the defendant is entitled to an acquittal. For example, in the case of alleged bank fraud, prosecutors generally must prove beyond a reasonable doubt that the defendant knowingly executed or attempted to execute a material scheme to defraud a financial institution, or knowingly used materially false or fraudulent pretenses to obtain property owned by or under the custody or control of a financial institution, with the intent required by the particular statutory clause charged. If any of these elements cannot be proven beyond a reasonable doubt, the defendant must be acquitted. While the U.S. Attorney’s Office can charge a defendant with mortgage fraud, proving that the defendant acted intentionally is another matter entirely. A common defense in fraud cases is that the defendant never personally participated. Many cases involve a party other than the defendant, such as a notary, a broker, or an attorney who has been engaged to handle the loan. If the defendant was unaware of a forgery or misstatement, they may not be liable for the alleged crime. Lack of knowing participation may form a strong defense to fraud allegations, especially when the defendant is confronted with documentation that was not prepared or reviewed by him or her.

When facing an indictment, a defendant cannot simply walk away. He or she must be prepared to defend themselves through an experienced defense attorney. If a defendant can’t afford to hire their own attorneys, they may need to seek court-appointed federal counsel.

In some cases, the same mortgage conduct will trigger both state and federal charges. Because the federal government generally seeks to proceed first, it is recommended to focus on defending against the federal case before worrying about the state charges.

Normally, a federal defendant will face a federal arraignment after receiving his or her indictment. Following the arraignment, the defendant will begin the pretrial proceedings.

Which lawyers and conversations matter in a mortgage-fraud case?

If you have a civil dispute with a lender, then you need to talk to a mortgage, foreclosure, or lending attorney. But, if the federal government is accusing you of mortgage fraud, you will need to speak with a federal white-collar defense lawyer.

How much information should I give my defense counsel?

When you hire a defense attorney, the first step is to tell them everything. This is not the time to hold back information or try to make yourself look better by remaining silent about certain facts. The more your lawyer knows, the better they can defend you against federal charges.

What is a grand-jury subpoena?

A grand-jury subpoena is evidence that a federal criminal investigation is in progress. This is not necessarily good news, as the subpoena generally signals a desire to build a case against an individual. Because the prosecution can request information from third parties during a grand-jury proceeding, it’s possible to face a federal criminal investigation without your knowledge or cooperation.

What documents will federal prosecutors use to build their case against me?

When conducting an investigation into alleged mortgage fraud, investigators will target documents and records that appear relevant to the prosecution’s case. This can include:

• Loan application documents
• Bank statements and credit card statements
• Emails and other electronic communications
• Phone records and text messages
• Property appraisal documents
• Documents from brokers or other third parties While many of these records will be obtained through grand-jury subpoenas, prosecutors can also request that you voluntarily provide these documents and other information about your loan.

Should I talk to federal investigators if they approach me for a voluntary statement?

When they see an opportunity to collect information from you, federal prosecutors will attempt to have you provide voluntary statements. These statements can potentially be used against you in court, even if you have a right to remain silent. While you have the absolute right to decline answering investigators’ questions, you will still need to ensure that your legal rights are protected as the investigation moves forward.

What can I do if I get a subpoena to testify before a grand jury?

If you receive a subpoena to testify before a grand jury, this is a serious matter that requires immediate attention. While you cannot simply ignore the subpoena, your lawyer can challenge the government’s desire to use your testimony against you. Your lawyer can argue that you are a target of the investigation or that your testimony is a violation of your rights as a defendant. This is one reason why early intervention can be beneficial in federal mortgage fraud cases.

Get Advice on Your Situation

If you want someone to look at the specifics of your case, Spodek Law Group handles federal criminal defense nationwide from New York and Los Angeles. The firm has been practicing since 1976 and its motto is simple: we owe loyalty to only you. Call 888 348 8028.