Houston Criminal Attorney: Mortgage Fraud

In mortgage lending, the paperwork is intensive and the regulations complex. It is easy to encounter legal problems if any documentation is deemed false, misleading, or incomplete. Government and industry fraud investigators often draw the wrong conclusions when examining records, and may persue criminal charges when there was no intent to defraud.

Mortgage fraud is being prosecuted with greater frequency and increased zeal in Texas and throughout the country: the FBI identified mortgage fraud as a “pervasive and growing” problem in the United States and has listed it as a “significant priority” in its Financial Crimes Report. Police, federal law enforcement, the securities division and state banking departments are carefully investigating and vigorously pursuing individuals who may have been involved in deceptive mortgage practices.

While there is no specific federal law governing mortgage fraud, the term generally covers laws that deal with real property transactions. In other words several types of fraud are used to comprise what the government calls mortgage fraud. Examples of the federal fraud law would be:

• Mail Fraud- refers to any scheme which attempts to unlawfully obtain money or valuables in which the postal system is used at any point in the commission of a criminal offence. Mail fraud is a legal concept in the United States Code which can provide for increased penalty of any criminally fraudulent activity if it is determined that the activity involved used the United States Postal Service.
• Wire Fraud- a legal concept that provides for enhanced penalty of any criminally fraudulent activity if it is determined that the activity involved electronic communications of any kind, at any phase of the event. As in the case of mail fraud, this statute is often used as a basis for a separate federal prosecution of what would otherwise have been only a violation of a state law.
• Bank Fraud- false information provided to a FDIC insured bank 

In addition there are usually other counts such as money laundering. The base offense level can be a 6 or 7 on the sentencing guidelines, which provides for a possible probation sentence; however, if the loss exceeds $5,000.00 then the guidelines provide for a greater exposure of prison time. The maximum term of imprisonment for the fraud indictment is usually 20 years although other counts can increase this exposure.

There are many ways for home buyers to land in trouble with federal authorities while applying for a mortgage. Criminal intent may be assigned to honest mistakes in a mountain of required documentation, or charges could result from the lax practices of mortgage professionals trying to help buyers qualify for loans. Mortgage brokers, realtors, lenders and borrowers are also possible defendants in a mortgage fraud indictment; because of their fiduciary roles, industry insiders can face enhanced criminal penalties if found guilty of profiting from fraudulent transactions through kickbacks, fees, or commissions.  Many borrowers have also been indicted based upon the documents they were encouraged to sign in obtaining their loans.

A criminal mortgage fraud defense attorney must research and investigate a mortgage fraud indictment at many levels. Mr. Kuniansky works closely with forensic accountants, financial experts, CPAs and former bank officials in preparing his clients' defense. 
Our office is experienced in defending mortgage fraud cases in several federal courts throughout the country. At Kuniansky & Associates we have the skills necessary to effectively defend individuals and corporations charged with a range of serious federal and state crimes. We are committed to providing personal attention to every client and have a deep understanding of prosecutorial strategies, conducting thorough investigations and preparation in every case. We have more than 30 years of valuable trial experience to bring to your defense, and represent bank officials, loan officers, loan processors, loan recruiters and promoters, straw buyers, underwriters, account managers, appraisers, mortgage and real estate brokers and agents.

For more information visit mortgage-fraud-attorney.com or contact us at (713) 622 8333 for a free consultation.