New York City Federal Bank Fraud Attorney - NYC Bank Fraud Lawyer
The New York City Federal Bank Fraud Lawyers of Joseph Potashnik and Associates PLLC provide first-class defense services to clients who are investigated or prosecuted for bank fraud and white collar crimes in federal courts of New York City, Long Island, and Newark.
Bank fraud is a collective term for many federal and state criminal white collar crimes all of which are associated with stealing money from banks and other financial institutions. Federal bank fraud prosecutions are an extremely serious business with potential penalties far surpassing similar charges brought in state courts. If you are accused of bank fraud or financial institution fraud in federal courts of New York City, you need tough and experienced New York City federal bank fraud lawyers of our firm. Give us a call to discuss your case!
NEW YORK CITY FEDERAL BANK FRAUD ATTORNEYS
Federal bank fraud crimes include cases of misapplication, embezzlement, false entries in financial institution records, bribery, fraud, making false statements to procure loans, check kitting, bank employees taking out personal loans at preferential rates, various computer crimes, and creating overdrafts.
Federal Misapplication is codified in 18 U.S.C. Sections 656, 657 that is one of the most widely used tools in Federal bank fraud prosecutions. This offense involves willfully converting the funds to one’s own use, benefit or gain, or the use, benefit or gain of a third party.
Federal Embezzlement is similar to misapplication and is codified in the same statute, 18 U.S.C. Sections 656, 657. This applies to an insider who embezzles funds or property of a financial institution or its holding company.
Embezzlement is ''the fraudulent appropriation of property by a person to whom such property has been entrusted, or into whose hands it has lawfully come.'' The most important element of this statute is that funds must have belonged to victim but the accused must have had lawful possession of the property.
Federal False Entries in Financial Institution or Holding Company Records is addressed to by 18 U.S.C. Sections 1005, 1006, which makes it a crime for bank employees to make any false entry in bank documents with the intent to defraud the bank.
Federal law provides truly draconian punishments for violations of this law. Penalties include a fine of up to $1 million, imprisonment of up to 30 years, or both. To make their case under this law, the government must establish that (1) the entry is false; (2) the accused either personally made or caused the entry to be made; (3) the accused knew the entry was false when it was made; and (4) the accused intended that the entry injure or defraud the financial institution or holding company or deceive any officer of such institution, company or certain public officials. Section 1006 applies to insiders acting with the intent to defraud while Section 1005 applies to any unlawful participant acting with intent to defraud.
Federal Bribery (18 USC 215) is a federal bank fraud statute that applies to giving, offering, or promising anything of value to anyone with intent to influence or reward a financial institution’s officer, director, employee, agent, or attorney in connection with any business or transaction of the institution.
It is also illegal for a bank employee to corruptly solicit or accept anything of value from any person, with intent to be influenced or rewarded in connection with any business or transaction of the institution.
The penalties for bribery are extremely harsh and may include the fine of the greater of $1,000,000 or three times the value of the bribe and/or imprisonment of up to 30 years. However, if the bribe is below $100, the fine is limited to $1,000 and prison term is limited to one year.
Federal bank fraud statute, 18 U.S.C. Section 1344 makes it a crime to “knowingly execute or attempt to execute a scheme or artifice to defraud or to obtain, by means of false or fraudulent pretenses, representations or promises, any of the moneys or funds, credits, assets, securities, or other property owned by or under the custody or control of a financial institution”.
This law is the “catch-all” tool used by federal prosecutors in any type of bank fraud, including car title fraud, stolen or phony checks, credit card fraud, ATM fraud, stolen ATM cards, check kitting, and other schemes.
Making false statements to procure loans 18 U.S.C. Section 1014 is also extremely popular with federal prosecutors. Under this statute, anyone who knowingly makes any false statement or report or who willfully overvalues collateral for the purpose of obtaining credit from a banking institution will be fined for up to $1,000.000 or imprisoned for up to 30 years.
Check kiting (cheque kitting) is a scheme, involving using checking accounts at several banks to systematically exchange checks of similar amounts. The scheme takes an advantage of the delay as the checks are cleared through the Federal Reserve System. As the result, there is an inflated and uncollected balance at the banks involved. While checks drawn against uncollected funds are in the clearing process, the conspirators use the deposited but uncollected monies. Check kitting schemes often result in prosecution under mail and wire fraud and bank fraud statutes.
If you are investigated or arrested by New York City federal authorities for federal bank fraud, remember not to discuss any details with investigators before consulting with an experienced New York City federal Bank Fraud Attorney. Our lawyers have defended numerous white collar criminal cases and you will benefit from our litigation and trial experience. Call us today to schedule the consultation!
