Mortgage Fraud | Bank Fraud Attorney Minneapolis MN

People may commit a crime when they knowingly provide false information in a mortgage application to secure approval or more favorable terms, either to obtain financing the person otherwise couldn’t get or to steal loaned mortgage funds with no intent to repay them. When prosecutors have charged you with mortgage fraud, you need experienced legal counsel to help you fight for a favorable resolution to your prosecution. Contact Mauzy Law Office, P.A., today for a free initial case evaluation with a bank mortgage fraud attorney to discuss your legal options for facing your state or federal charges.

Understanding Bank Mortgage Fraud

A person may commit crimes popularly known as mortgage fraud when they intentionally or knowingly make misrepresentations or misleading omissions of information during the mortgage approval or loan modification process to secure approval for a mortgage or more favorable terms. People engage in mortgage fraud either to secure financing for housing that banks would otherwise deny them or to obtain more favorable terms than they could otherwise obtain. Alternatively, people may commit mortgage fraud to obtain borrowed money and subsequently abscond with it, with no intention of repaying the mortgage.

Typical examples of the ways people commit mortgage fraud include:

Falsifying employment or annual income
Providing inflated property appraisals
Employing straw buyer schemes (using a willing co-conspirator’s credit to obtain the mortgage)
Committing identity theft to use stolen or made-up identities

State vs. Federal Mortgage Fraud Charges

An individual may face prosecution for bank mortgage fraud under federal or state law. The jurisdiction over a mortgage fraud case can depend on the financial institution that became a victim of the crime. Offenses against federally charted or insured financial institutions or mortgage lenders can lead to federal criminal charges. In contrast, an offense involving a state-charted bank or state-licensed mortgage lender may lead to prosecution under Minnesota law. In Minnesota, a person may commit the crime of residential mortgage fraud if they:

Knowingly make a deliberate and material misstatement, misrepresentation, or omission during the mortgage lending process with the intent for another party in the process to rely on it
Knowingly use a deliberate or material misstatement, misrepresentation, or omission, knowing of its false or misleading nature, during the mortgage lending process with the intent for another party in the process to rely on it
Conspire to commit mortgage fraud

Under federal law, a person who engages in mortgage fraud may face various types of criminal charges, depending on the specifics of their offense, such as:

Knowingly making false statements to a financial institution
Mail fraud (if sending fraudulent information through the U.S. Postal Service)
Wire fraud (if sending fraudulent information through facsimile or the internet)
Bank fraud (knowingly executing or attempting to execute a scheme to defraud a financial institution or obtain money, credit, or other property of a financial institution through false or fraudulent pretenses, representations, or promises)

Penalties for Mortgage Fraud

A person convicted of mortgage fraud under Minnesota criminal law may face a penalty that includes up to two years in prison, a fine that can range from $1,000 to $100,000 depending on the value of the economic loss caused by the offense, or both imprisonment and a fine. A Minnesota court can also impose restitution on a convicted defendant, requiring them to reimburse the victim financial institution for the losses it incurred due to the defendant’s offense.

A person convicted of federal crimes for mortgage fraud may face various penalties depending on the specific offense(s) of conviction. Potential penalties include:

Knowingly Making False Statements to a Financial Institution – Up to 30 years in prison, a fine of up to $1 million, or both
Mail Fraud – Up to 30 years in prison, a fine, or both
Wire Fraud – Up to 30 years in prison, a fine, or both
Bank Fraud – Up to 30 years in prison, a fine of up to $1 million, or both

The U.S. Attorney’s office may also petition a district court to order the forfeiture of any money or property a convicted defendant obtained through the commission of their offense.

A conviction for mortgage fraud can have other long-lasting consequences, including a criminal record that may appear in background checks. The stigma of a record with a mortgage fraud conviction can make it more challenging to secure professional licensure, employment, housing opportunities, or access to financial services.

Legal Defenses to Bank Mortgage Fraud Charges

A person charged with engaging in bank mortgage fraud may pursue various legal or factual defenses against the government’s allegations, such as:

Lack of Intent – A defendant may argue that the prosecution’s case does not prove they acted with the level of criminal intent required by the charged statute. For example, a defendant may assert that they submitted information in connection with the mortgage process under a good faith belief as to the accuracy and completeness of the information.
Duress – Defendants may claim that a third party pressured them into submitting false or misleading information during the mortgage process.
Violation of Rights – A defendant may seek to exclude evidence from the prosecution’s case by asserting that investigators obtained that evidence through an unlawful search or a custodial interrogation that violated the defendant’s rights.

How a Criminal Defense Attorney Can Help

When the police place you under suspicion of or arrest you for mortgage fraud, a criminal defense lawyer from Mauzy Law Office, P.A., can help you protect your reputation, freedom, and future by:

Thoroughly investigating your case, even during the initial criminal investigation before your arrest, to build a robust defense that can help resolve your legal matter as early as possible
Explaining bank mortgage fraud charges and the potential outcomes of a criminal case to help you make informed decisions about how to proceed with your matter
Reviewing the facts and evidence to develop tailored legal strategies
Negotiating with prosecutors and fighting for your rights in court

Why Choose Our Law Firm?

Turn to a white-collar crime defense lawyer from Mauzy Law Office, P.A., to help you pursue a favorable outcome to your mortgage fraud charges because:

Our firm has over 30 years of experience handling complex white-collar crime cases, with over 100 trial victories in state and federal courts.
Attorney William Mauzy has earned board certification as a criminal trial specialist from the Minnesota State Bar Association and the National Board of Trial Advocacy. He has also received numerous awards and recognitions for his work, including listings in Best Lawyers in America and Top 10 Lawyers in Minnesota, as well as selection as a fellow of the American College of Trial Lawyers, a distinction conferred upon the top one percent of lawyers in the nation. Attorney Mauzy has also had media spotlights on CBS, CNN, NBC, ABC, FOX, The Wall Street Journal, and The New York Times.
Our legal team will work tirelessly to provide you with aggressive prearrest and pretrial advocacy, helping you resolve a criminal matter involving mortgage fraud allegations before prosecutors bring charges against you or take you to trial.

Contact Us Today to Discuss Your Legal Options

After an arrest on bank mortgage fraud charges, don’t wait to speak with a seasoned criminal defense lawyer to discuss your options in your case. Contact Mauzy Law Office, P.A., today for a free, confidential consultation to learn how our firm will fight to protect your rights, reputation, and future from the potential consequences of a conviction for mortgage fraud.