Source: http://taxfraudlawyers.com/practice_area/bank_fraud.html
Timestamp: 2020-02-27 04:48:14
Document Index: 651335751

Matched Legal Cases: ['§ 1344', '§ 20', '§ 1346', '§ 1344', '§ 1349', '§ 3293', '§ 1004', '§ 1005', '§ 1006', '§ 1007', '§ 1013', '§ 1014', '§ 1029', '§ 1032', '§ 3553', '§ 3553']

(2) 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;
While the two subsections proscribe slightly different conduct, a person may commit bank fraud by violating either subsection.United States v. Brandon, 298 F.3d 307, 311 (4th Cir. 2002), citing United States v. Colton, 231 F.3d 890, 897 (4th Cir. 2000). The two subsections are in the disjunctive, so that an individual may commit bank fraud under provision (1) by defrauding a financial institution without making the false or fraudulent representations required by provision (2). United States v. Brandon, 150 F.Supp.2d 883 (E.D.Va. 2001).
The criminal law elements of a violation of 18 U.S.C. § 1344 (1) bank fraud which must be contained in an indictment and must be proved by the government beyond a reasonable doubt are as follows:
● The defendant knowingly executed or attempted to execute a scheme or artifice to defraud.
● The defendant did defraud or attempt to defraud the financial institution.
● The defendant used a material misrepresentation or concealment of a material fact as part of the scheme or attempted scheme.
● The financial institution was insured or chartered by the federal government.
● The defendant knowingly executed or attempted to execute a scheme or artifice to obtain the money (or other property) owned by, or under the custody or control of, a financial institution.
● The defendant used materially false or fraudulent pretenses, representations, or promises in the execution or attempted execution of the scheme.
In Neder, the Supreme Court defined a matter as materialif a reasonable man would attach importance to its existence or nonexistence in determining his choice of action in the transaction in question.Neder, 527 U.S. at 22, n. 5. The Second Circuit Court of Appeals has defined a material misrepresentation as one capable of influencing a bank's actions.United States v. Rodriguez, 140 F.3d 163 (2nd Cir.1998).
18 U.S.C. § 20 defines a financial institutionas used in Title 18 of the US Code as follows:
● An insured depository institution (as defined in section 3(c)(2) of the Federal Deposit Insurance Act).
● A credit union with accounts insured by the National Credit Union Share Insurance Fund.
● A Federal home loan bank or a member, as defined in section 2 of the Federal Home Loan
Bank Act ( 12 U.S.C. 1422), of the Federal home loan bank system.
● A System institution of the Farm Credit System, as defined in section 5.35(3) of the Farm Credit Act of 1971.
● A small business investment company, as defined in section 103 of the Small Business Investment Act of 1958 ( 15 U.S.C. 662).
● A depository institution holding company (as defined in section 3(w)(1) of the Federal Deposit Insurance Act.
● A Federal Reserve bank or a member bank of the Federal Reserve System.
● An organization operating under section 25 or section 25(a) of the Federal Reserve Act.
● A branch or agency of a foreign bank (as such terms are defined in paragraphs (1) and (3) of section 1(b) of the International Banking Act of 1978).
The government is not required to prove an actual loss to the financial institution so long as there is evidence that the defendant intended to expose the institution to such a loss[.]United States v. Laljie, 184 F.3d 180, 189 (2nd Cir.1999); United States v. Colton, 231 F.3d 890, 908 (4th Cir. 2000) (sufficient if bank was exposed to an actual or potential risk of loss).
18 U.S.C. § 1346 which defines a scheme or artifice to defraud, provides as follows:
The phrase scheme to defraud of 18 U.S.C. § 1344 has been broadly construed by the courts. The scheme to defraud clause of Section 1344(1) is to be interpreted broadly, and requires that the defendant act with the specific intent to deceive or cheat, for the purpose of getting financial gain for oneself or causing financial loss to another United States v. Moede, 48 F.3d 238, 241 (7th Cir.1995), citing United States v. Colton, 231 F.3d 890, 897-98 (4th Cir. 2000); United States v. Brandon, 298 F.3d 307 (4th Cir. 2002); United States v. Goldblatt, 813 F.2d 619, 624 (3d Cir.1987) (The term scheme to defraud, however, is not capable of precise definition. Fraud instead is measured in a particular case by determining whether the scheme demonstrated a departure from fundamental honesty, moral uprightness, or fair play and candid dealings in the general life of the community).
An attempt or conspiracy to commit bank fraud is subject to the same criminal penalties as the substantive bank fraud. 18 U.S.C. § 1349 provides as follows:
The statute of limitations for a federal bank fraud case is 10 years. 18 U.S.C. § 3293 provides as follows:
● 18 U.S.C. § 1004. Certification of checks.
● 18 U.S.C. § 1005. Bank entries, reports and transactions.
● 18 U.S.C. § 1006. Federal credit institution entries, reports and transactions.
● 18 U.S.C. § 1007. Federal Deposit Insurance Corporation transactions.
● 18 U.S.C. § 1013. Farm loan bonds and credit bank debentures.
● 18 U.S.C. § 1014. Loan and credit applications generally; renewals and discounts; crop insurance.
● 18 U.S.C. § 1029. Fraud and related activity in connection with access devices.
● 18 U.S.C. § 1032. Concealment of assets from conservator, receiver, or liquidating agent of financial institution.
Sentencing regarding federal bank fraud violations is generally governed by the Section 2B1.1 of the United States Sentencing Guidelines, which are advisory pursuant to United States v. Booker, 125 S.Ct. 738 (2005), and the factors set forth in 18 U.S.C. § 3553(a). United States v. Staples, 435 F.3d 860 (8th Cir. 2006); United States v. Reid, 2006 WL 41194 (C.A.4 (Va.)).
● 18 U.S.C. § 3553 provides as follows: