What Is Federal Mortgage Fraud and What Are the Penalties?

 Posted on May 30, 2024 in Mortgage fraud

There are several types of fraud that are considered white-collar crimes. What they share in common is the fact that the person committing them misrepresents the truth, leaves out some important facts, or engages in otherwise fraudulent behavior. One specific type that we will examine today is mortgage fraud. When someone acts fraudulently during a mortgage transaction that affects financial institutions that are federally insured, mortgage fraud becomes a federal crime. The severe implications of a mortgage fraud conviction include heavy fines and long prison sentences. If you are facing federal mortgage fraud charges, speak with a qualified Chicago, IL mortgage fraud defense attorney who can protect your rights, explain your options, and build a strong defense.

When Is Mortgage Fraud a Federal Crime?

When the alleged behavior affects the government, it becomes a federal offense. That means the fraud could involve FHA-insured loans, VA loans, or other federally insured financial arrangements. Depending on the specifics of the case, federal mortgage fraud might also involve bank, mail, wire, or securities fraud.

Mortgage fraud happens when someone tries to obtain money or property by defrauding the financial institutions involved. That means they lie, omit important facts, or misrepresent anything relevant to be granted a mortgage. The inaccurate information can relate to their employment status, income, assets, the existence and scope of any debt, or the reason for the loan.

Federal Mortgage Fraud Penalties

Charges of federal mortgage fraud tend to be based on the scope of financial loss that the government suffered. Depending on how much money the government was defrauded out of, a conviction could have fines anywhere from the thousands to the millions, as well as severe sentences that could have you in prison for the majority of your adult life.

In addition to fines and prison sentences, you might get your professional license revoked. Being convicted of a federal crime can marr your reputation though, making it much harder for you to find new employment. Losing your livelihood and being unable to find a new one can bring about further financial strife.

Schedule a Free Consultation with a Chicago, IL Federal Mortgage Fraud Defense Attorney

If you are facing federal mortgage fraud charges, you need a compassionate Chicago, IL criminal defense lawyer who has experience representing clients in similar cases. The stakes are too high when a federal investigation is involved. You can not leave your fate up to chance. Hal M. Garfinkel at Law Offices of Hal M. Garfinkel LLC, Chicago Criminal Defense Attorney used to be a prosecutor and understands how the other side builds a case. He can build an aggressive, strong defense. Call 312-629-0669 to schedule a free consultation.