Legal Law

Five Types of Bank Fraud – Title 18 – US Code – Section 1344 Explanation

Violations of the law at a bank or through the use of financial institution accounts are often prosecuted in federal court as “bank fraud.”

The United States Attorney’s Office will seek an indictment (a document that formally charges the person with a crime) for bank fraud based on a relatively non-complex theft or embezzlement of money by a bank employee, or a more complex scheme to defraud based on false statements, such as an overvaluation of properties or values. In addition, the federal prosecution will seek a bank fraud indictment based on a complex scheme to defraud, such as a scheme based on a series of false loan applications and misappropriation of borrowed funds or non-existent collateral.

The United States Code contains federal crimes that are prosecuted by the Department of Justice or its field offices, the United States Attorney’s Offices, in the respective districts in the different states. Title 18 of the United States Code, Section 1344, entitled Bank Fraud, makes it a crime to defraud a bank or to commit a scheme to defraud the accounts of a financial institution. Title 18, US Code, Section 1344 says the following:

BANKING FRAUD

Who knowingly executes or attempts to execute a plan or artifice:

1) defraud a financial institution; gold

2) to obtain money, funds, credits, assets, securities or other property from, or under the custody or control of, a financial institution, through false or fraudulent claims, representations or promises;

you will be fined no more than $ 1,000,000 or imprisoned for more than 30 years, or both.

FALSE STATEMENTS

The violation of making a false statement to a financial institution is also a criminal law commonly used to prosecute people for making false statements to the facts before a bank. The crime of making a false statement is often used when federal prosecutors are investigating a person for bank fraud or violations involving a financial institution.

Under Title 18, United States Code, Section 1014, it is a federal crime to make a false statement to a financial institution. 18 USC ยง1014 says the following (in summary):

False statements to a financial institution –

Whoever knowingly

1) Make a false statement or overvalue any property

2) In order to influence a

3) The action of a financial institution

you will be fined no more than $ 1,000,000 or imprisoned for more than 30 years, or both.

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