A New York City Criminal Attorney Explains FDIC Fraud
The Federal Deposit Insurance Corporation was created to inspire public confidence in the financial system in the United States. The FDIC provides insurance for up to $250,000 in bank deposits so consumers do not need to worry about their money if a bank fails. While deposit insurance is what the FDIC is best known for, it also does other things as well. For example, the FDIC created a Temporary Liquidity Guarantee Program during the financial crisis in order to convince banks to begin lending to other financial institutions. This program guaranteed up to 125 percent of unsecured debts when one bank loaned to another.
While claims can and should be made in the event of a bank failure, submitting false claims is not permitted. If materially misleading statements are made to the FDIC in order to collect funds or for any other reason, this can lead to serious federal criminal charges Defendants accused of perpetrating fraud against the Federal Deposit Insurance Corporation should consult with an experienced NY criminal attorney as soon as possible following an investigation or an arrest so they can begin to develop a strategic response to the case being made against them. Bukh Law Firms, PLLC represents bank officials and other defendants accused of FDIC fraud.
What is FDIC Fraud?
FDIC fraud can take many forms including:
- When bank insiders intentionally take actions that lead to bank failure
- When bank insiders claim loans they didn’t make, or make loans to fictitious or unqualified buyers for the financial benefit of the insiders
- When false statements are provided to the FDIC as part of a claim for funds recovery
- When false information is provided to FDIC examiners and bank auditors that these auditors and examiners rely on to formulate opinions about the bank’s condition
Bank insiders have been found guilty of defrauding the FDIC in many criminal cases, including cases where bankers from defunct banks falsely claimed that secured loans were actually unsecured in order to take advantage of an FDIC-guaranteed loan under the Temporary Liquidity Guarantee Program. FDIC can take action against individual bankers or can bring criminal charges against financial institution. It often works in conjunction with the Department of Justice and both criminal and civil cases are pursued against suspected scammers.
Penalties for Fraud Against the Federal Deposit Insurance Corporation
Defendants can be charged with a wide variety of different criminal offenses for fraud against the Federal Deposit Insurance Corporation. Examples may include:
- Bank bribery (18 U.S.C. Section 215)
- Counterfeiting and forgery (18 U.S.C. Sections 471, 472, and 500)
- Theft, embezzlement, or misapplication of funds (18 U.S.C. Section 656 and 657)
- False advertising or misusing the FDIC name (18 U.S.C. Section 709)
- False statements or entries (19 U.S.C. Sections 1001, 1005)
- False statements made for purposes of influencing FDIC transactions (18 U.S.C. Section 1007).
- False statements on loans or credit applications (18 U.S.C. Section 1014)
- Fraud in connection with identification documents or in connection with access devices (18 U.S.C. Sections 1028 and 1029).
- Computer fraud (18 U.S.C. Section 1030).
- Concealing assets from the FDIC (18 U.S.C. Section 1032)
- Mail fraud, wire fraud, and bank fraud (18 U.S.C. Sections 1341, 1343, and 1344).
Each of these federal offenses can result in imprisonment, sometimes for decades. You can also expect financial accounts to be frozen, and funds to be seized if it is believed the money was acquired as a result of criminal fraud.
How a New York City Criminal Attorney Helps Defendants in FDIC Fraud Cases
Banks, bankers, and others accused of involvement with FDIC fraud cases should consult with Bukh Law Firms, PLLC to learn about their options for responding to criminal charges. Our NY criminal law firm provides aggressive, strategic legal representation to clients with the goal of quickly resolving criminal cases with a minimum of penalties. To learn more and to get our legal team started on working for you, give us a call today.
