Bank fraud allegations can trigger serious federal investigations involving financial records, electronic communications, loan documents, and years of transaction history. These investigations may begin long before federal prosecutors decide whether to file criminal charges.
Federal bank fraud cases can involve allegations ranging from fraudulent loan applications and altered checks to schemes involving account information or financial institutions. However, suspicious transactions, inaccurate documents, or financial losses do not automatically establish criminal bank fraud.
A Bank Fraud Defense Attorney can examine the transactions involved, determine what prosecutors must prove, and challenge the government’s interpretation of the evidence. Milner Wynne represents individuals facing complex white collar and federal criminal matters, including serious fraud allegations.
What Is Bank Fraud?
Federal bank fraud is primarily addressed by 18 U.S.C. § 1344. The statute prohibits knowingly executing, or attempting to execute, certain schemes involving a financial institution.
Federal prosecutors may pursue a case when they believe someone knowingly carried out or attempted a scheme to defraud a financial institution. The statute also addresses obtaining money, funds, credits, assets, securities, or other property under the custody or control of a financial institution through false or fraudulent pretenses, representations, or promises.
Bank fraud is therefore broader than physically stealing money from a bank.
Cases can arise from complex financial transactions, applications, checks, electronic transfers, business dealings, and other activities involving financial institutions.
Examples of Conduct That Can Lead to Bank Fraud Investigations
Bank fraud allegations can develop from many different circumstances.
Investigators may examine suspected conduct involving:
- False information on loan applications
- Fraudulent checks
- Altered financial documents
- Unauthorized account transactions
- Misrepresentation of assets or income
- Fraudulent business loan applications
- Schemes involving bank accounts
- Stolen or improperly obtained account information
- False documents submitted to financial institutions
- Attempts to obtain bank-controlled property through deception
More complicated investigations may involve several businesses, bank accounts, or individuals.
The existence of an inaccurate document or unusual transaction does not necessarily establish a crime. The circumstances surrounding the alleged conduct and the defendant’s knowledge can significantly affect a bank fraud case.
What Must Federal Prosecutors Prove?
Federal prosecutors carry the burden of proving the charged offense beyond a reasonable doubt.
Bank fraud under 18 U.S.C. § 1344 requires knowing conduct. Depending on which portion of the statute prosecutors rely upon, the government must establish the applicable statutory elements concerning the alleged scheme and its relationship to a financial institution or property under its custody or control.
Intent and knowledge can therefore become major issues.
For example, a business owner may rely on employees, accountants, loan brokers, or other professionals when preparing financial documents. Incorrect information may appear in an application without establishing that everyone associated with the document knowingly participated in fraud.
A Bank Fraud Defense Attorney can examine who prepared the information, who reviewed it, what the defendant knew, and what communications existed when the transaction occurred.
How Federal Bank Fraud Investigations Develop
Bank fraud cases can involve extensive documentary evidence.
Investigators may obtain bank statements, loan records, account histories, emails, text messages, contracts, corporate documents, accounting records, and electronic data. They may also interview bank employees, business partners, accountants, borrowers, or other individuals.
The FBI frequently investigates federal financial crimes, including bank fraud. Other federal agencies may become involved depending on the circumstances.
Federal prosecutors can also use grand jury subpoenas to obtain financial records and testimony.
As a result, the government may have already collected substantial evidence before investigators contact the person they believe participated in the alleged scheme.
What to Do If Federal Agents Contact You About Bank Fraud
Contact from federal investigators should be treated seriously even when no charges have been filed.
Agents may ask someone to explain a transaction, loan application, account, or relationship with another person under investigation.
Answering immediately can create risks.
Investigators may possess documents or statements that the person being interviewed has not seen. They may compare answers against bank records, electronic communications, or statements from other witnesses.
You can seek legal advice before deciding whether to participate in an interview.
A Bank Fraud Defense Attorney can communicate with investigators, attempt to determine your status in the investigation, and help you understand the potential consequences of providing information.
Bank Fraud and Related Federal Charges
A bank fraud investigation does not always result in a single charge.
Depending on the alleged conduct, federal prosecutors may investigate additional offenses such as:
- Wire fraud
- Mail fraud
- Money laundering
- Identity theft
- Conspiracy
- False statements
- Forgery or counterfeiting
- Other financial crimes
For example, prosecutors may allege that several individuals worked together to carry out a fraudulent financial scheme. That investigation could potentially produce both substantive fraud charges and a conspiracy allegation.
Financial transactions involving alleged proceeds can also lead investigators to examine possible money laundering violations.
Each offense contains its own elements. Defense counsel must therefore evaluate every charge rather than treating related allegations as interchangeable.
Potential Penalties for Federal Bank Fraud
Federal bank fraud is a serious felony.
Under 18 U.S.C. § 1344, a conviction can carry up to 30 years in federal prison, a fine of up to $1 million, or both.
That statutory maximum does not mean every bank fraud conviction results in the maximum sentence. Federal sentencing depends on numerous factors, and the advisory Federal Sentencing Guidelines may play an important role.
Financial loss, number of victims, role in the alleged offense, criminal history, and other circumstances can potentially affect sentencing calculations.
Restitution and forfeiture issues may also arise in financial crime cases.
Because federal sentencing is highly fact-specific, potential exposure should be evaluated based on the actual charges rather than a general description of the offense.
Developing a Bank Fraud Defense
The appropriate defense depends on what the government alleges and what the evidence shows.
A Bank Fraud Defense Attorney may examine whether prosecutors can establish knowing participation in a fraudulent scheme. Financial records may show that a transaction occurred without establishing what a particular defendant knew about it.
Other important questions can include:
- Who created the allegedly false documents?
- Did the defendant know information was inaccurate?
- Who controlled the relevant accounts?
- What communications occurred before the transaction?
- Did another person provide the disputed information?
- Do business records provide a legitimate explanation?
- Are government witnesses reliable?
- Was evidence obtained lawfully?
- Can prosecutors establish every element of the charged offense?
Context can be especially important in complicated business transactions.
A financial decision that appears suspicious when examined years later may look different when contracts, emails, accounting information, and the responsibilities of everyone involved are considered together.
Bank Fraud Defense in Dallas
Milner Wynne focuses exclusively on criminal defense and represents clients facing serious state and federal allegations.
George R. Milner III has practiced criminal law since 1992. He began his career as an assistant district attorney in Dallas County before moving into criminal defense. His practice includes complex white collar and federal criminal litigation.
Bank fraud cases can require detailed analysis of both federal law and substantial financial evidence. Beginning that analysis during the investigative stage can provide additional time to understand the government’s theory and determine an appropriate response.
Frequently Asked Questions About Bank Fraud
Is bank fraud always a federal crime?
Bank fraud can be prosecuted federally when the alleged conduct falls within the federal bank fraud statute. Related conduct may also violate other federal or Texas criminal laws.
Can attempted bank fraud lead to federal charges?
Yes. The federal bank fraud statute expressly covers attempts to execute prohibited schemes as well as completed conduct.
Can incorrect information on a loan application result in bank fraud charges?
Potentially, depending on the circumstances. An inaccurate statement alone does not answer whether the elements of bank fraud are present. Investigators will consider issues such as materiality, knowledge, intent, and the overall alleged scheme.
Is check fraud considered bank fraud?
Certain fraudulent check schemes may lead to bank fraud allegations, but the applicable charges depend on how the alleged scheme operated and which laws prosecutors believe were violated.
Can multiple people be charged in a bank fraud investigation?
Yes. Prosecutors may investigate multiple participants and potentially pursue conspiracy or other related charges when they believe people knowingly worked together.
Should I hire an attorney before federal bank fraud charges are filed?
You can seek representation during the investigation. If agents have contacted you, you have received a subpoena, or you learn that authorities are examining your financial activity, consulting an attorney early can help you understand your rights and options.
Speak With a Bank Fraud Defense Attorney
Federal bank fraud investigations can involve extensive records and substantial potential penalties. The government’s evidence still must establish each element of the charged offense beyond a reasonable doubt.
Milner Wynne represents individuals facing complex federal financial crime investigations and prosecutions. If federal authorities are investigating your financial activity or you have been accused of bank fraud, speaking with a Bank Fraud Defense Attorney can help you understand the allegations, protect your rights, and begin preparing your defense.