Federal Bank Fraud Laws (18 USC 1344)

If you have attained or attempted to attain money from a federal reserve bank, you could be charged with federal bank fraud.

• to defraud a financial institution; or
• to obtain any of the moneys, funds, credits, assets, securities, or other property owned by, or under the custody or control of, a financial institution, by means of false or fraudulent pretenses, representations, or promises.

Federal Prosecution of Bank Fraud Charges (18 USC 1344)

1. Executed or attempted to execute  a scheme, substantially as charged in the indictment, to defraud a financial institution [or to obtain a financial institution’s money by means of false or fraudulent pretenses];
2. Knowingly and willfully participated in this scheme with the intent to defraud [or to obtain money by means of false or fraudulent pretenses];
3. The financial institution was federally insured, a federal reserve bank or a member of the Federal Reserve System.

Federal Sentencing and Punishment for a Bank Fraud Conviction

Possible Defenses to Federal Bank Fraud

If you are convicted of federal bank fraud, you could be sentenced to up to 40 years in federal prison.

• You had no knowledge or intent to defraud. If you were involved in the transaction but did not have knowledge of its fraudulent and unlawful pretenses, or you did not intend to participate in the transaction, you should not be convicted of this crime.
• You did not participate in a scheme to defraud a financial institution. If you were not involved in the scheme or the alleged incident did not involve obtaining money directly from a financial institution, but rather an intermediary such as a member of the bank, you should not be convicted of federal bank fraud. However, you could be convicted of other crimes.
• There was no act of misrepresentation- Depending on the circumstances, if you can prove that the facts presented to the financial institution were in fact true, then you should not be found guilty of federal bank fraud.
• The financial institution never faced any actual threat of potential loss - While the financial institution doesn’t need to suffer any actual loss, if it can be shown that the institution never faced any potential loss regardless of how the scheme occurred, you should not be convicted of federal bank fraud.
• The financial institution was not federally insured- While this may still expose you to criminal liability, if the financial institution (e.g. a private lender ) is not federally insured, then this particular federal offense is not violated.

Frequently Asked Questions Regarding Federal Laws on Bank Fraud

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The attorneys at Wallin & Klarich have been defending those charged with federal bank fraud for over 40 years.