Penalties

Avoiding Mortgage Fraud Penalties

Our Top Priority Is to Keep Clients Out of Jail

State and federal courts take such a hard line on mortgage fraud and banking fraud that even a first offender with no prior record often gets a year or more in jail if convicted. At the Law Offices of Mark L. Horwitz, a Professional Association, we explore every avenue to avoid conviction and prison time. In fact, our knowledgeable, aggressive attorneys have helped clients avoid indictments completely.

Based in Central Florida, we represent clients statewide and nationwide charged with mortgage fraud, bank fraud, and related prosecutions. We stand willing to vigorously defend buyers, sellers, bankers and mortgage brokers, appraisers and real estate agents, and builders and developers.

Potential Criminal Penalties

Bank fraud under 18 U.S.C. § 1344 — Up to 30 years in prison and up to $1 million in fines

Mail fraud under 18 U.S.C. § 1341 and wire fraud under 18 U.S.C. § 1343 — Up to 20 years in prison, or up to 30 years in prison if the crime involves a financial institution, and up to $1 million in fines

Mortgage fraud — There is no federal mortgage fraud statute. But mortgage fraud can be charged as bank fraud if the crime involves a federally insured bank, or may be charged as wire fraud/mail fraud if involving an institution not insured by the FDIC. Mortgage fraud is covered by specific statute in some states, or charged as grand theft in others.

Obstruction of justice — Up to 20 years in prison and up to $1 million in fines

Actual bank fraud/mortgage fraud penalties vary by the circumstances. Sentences may be enhanced depending on:

• Prior convictions for fraud and other crimes
• The dollar amount of loss or intended loss
• Whether the defendant was in a position of trust (fiduciary)
• The number of victims
• The sophistication required to carry out the fraud
• Leading a conspiracy of five or more people

The threshold for incarceration for mortgage fraud is low: a loss of $70,000 can result in 12 to 18 months in jail upon conviction. As the amount of loss increases, potential prison time and fines escalate. Fraud and attempted fraud are viewed equally — if the scheme is detected before a loan is made, punishment is the same as if it were carried through.

License Sanctions

Licensed mortgage brokers, real estate agents, appraisers, and bank officers may be subject to license suspension or revocation for a fraud conviction.

Civil Litigation

Under the Racketeering-Influenced and Corrupt Organization Act (RICO), fraud defendants can be sued in civil court to recover three times the loss. This can be in addition to or instead of criminal charges.

For more information about potential bank fraud/mortgage fraud penalties in your case, or for intervention by our experienced criminal defense lawyers, call our Orlando office at 407.401.7224 or 866.784.0023 or contact us online.