Category : White Collar Crime

Oregon Woman Faces Jail Time for Theft

Carley Torres, a 35-year old resident of Medford, Oregon, faces up to 90 days in jail after being convicted of theft charges. According to prosecutors, Torres had her children solicit money from unsuspecting residents of local neighborhoods by telling them that the money was needed to send the eldest Torres child to volleyball camp.

Neighborhoods the Torres children targeted included:

• Medford
• Ashland
• Eagle Point

All false donations were solicited during 2007

Rather than use the money collected from this door-to-door operation for camp, the Torres family spent it on shopping sprees and recreational activities, including trips to the movies and monster truck events. In total, authorities estimate that the Torres stole over $3,000 by performing their scam.

Common Door-to-Door Scams

The Torres’ scam to steal money is no new phenomenon, as many scammers solicit money by going door-to-door and asking for “donations” for some fake cause, event, group or service. Some of the most common door-to-door scams involve asking for money for:

• chimney sweeping
• cleaning services
• gutter cleaning
• roof repair
• tree trimming
• non-profit organizations
• local clubs (such as the Boys and Girls Clubs)
• a school sports team or sports-related event book or magazine subscriptions

These scammers typically target the elderly and use a range of persuasive/forceful language to steamroll unsuspecting residents into forking over cash. If you suspect a solicitor at your door is a scammer, don’t give him money. Instead, if you want to donate to a cause or purchase a service, deal with the organization or business directly.

Husband Found Guilty of Theft Also

Laramie Torres, Carley’s 33-year old husband, was also found guilty of theft charges. However, he has only been sentenced to community service, rather than time in jail and the thousands of dollars in restitution fees that his wife must pay.

Laramie stated he will help his wife repay the stolen money.

(Source: The Baltimore Sun)

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"America's Sheriff" Suspected of Corruption

Sheriff Michael Carona, 53, of Orange County, California was nicknamed “America’s Sheriff” about five years ago by CNN talk-show host Larry King. Carona’s time as “America’s Sheriff” may be coming to an end, however. Corona’s own criminal trial began Oct. 28 after being indicted for fraud and corruption. His charges include:

• Conspiracy
• Mail fraud
• Witness tampering

His wife, Deborah Carona, is also charged with conspiracy and will be tried separately. Carona’s alleged mistress, Debra Hoffman, a lawyer, is charged with conspiracy, bankruptcy fraud and mail fraud; she will stand trial with Carona. Sheriff Carona was in his third term when he was indicted; he stepped down to concentrate on his legal defense.

$700,000 in Bribes

The federal prosecutors’ case against Carona accuses him of accepting cash, gifts, questionable loans and kickbacks amounting to nearly $700,000 in exchange for political favors. Many of the bribes came from Newport Beach businessman Don Haidl, who was made an assistant sheriff by Carona. Haidl agreed to become an undercover informant for the government last year.

Secret Recordings of Conversations

Conversations that were secretly recorded by one of Carona’s former assistant sheriffs, George Jaramillo, are expected to play a major role in the prosecution’s case. Jaramillo, 48, was also Carona’s confidant until he was fired by Carona; he is expected to testify for the prosecution.

“America’s Sheriff”

Sheriff Carona was nicknamed “America’s Sheriff” after a child-kidnapping case (that of five-year-old Samantha Runnion) rocketed him into the national spotlight. In his interview on CNN, Carona looked straight into the camera and told the child’s kidnapper not to eat or sleep — his deputies were hot on his trail. Her kidnapper and murderer, Alejandro Avila, was later apprehended.

(Source: MSNBC)

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Supreme Court to Decide on Identity Theft Case

The Supreme Court has decided to rule on a case about identity theft among illegal immigrants. The case involves Ignacio Flores-Figueroa, a Mexican immigrant who illegally worked at an Illinois steel plant (L&M Steel). Flores-Figueroa was given work because he used another person’s identity to obtain it.

The central controversy at hand is whether or not immigrants illegally working in the U.S., such as Flores-Figueroa, can be convicted of identity theft if they:

• had no intention of injuring an individual
• believed their fake ID documents to be counterfeit, rather than stolen

Following his 2006 arrest, Flores-Figueroa was convicted of aggravated identity theft, among other charges, and sentenced to 6.5 years in jail. Two and a half years of this sentence were due to the identity theft conviction.

To date, the defense team has appealed the case six times, with results equally split between both sides.

Arguments from Each Side

According to the defense, Flores-Figueroa didn’t know that he was using an actual person’s identity. Instead, the defendant thought the ID papers he had were counterfeit.

Consequently, his lawyers argue that he (or immigrants in similar circumstances) should not be charged with identity theft unless prosecutors can prove that the use of “fake” ID was intended to victimize a real individual.

Alternately, prosecutors contend that any use of another person’s identification papers (such as social security cards, birth certificates, etc.) is grounds for a conviction on identity theft charges.

Statistics on Illegal Immigrants

Here are some statistics on illegal immigrants that can elucidate their presence and role in the U.S.:

• Nearly 22 million people currently living in America are illegal immigrants.
• Since 1996, nearly $4 billion has been spent on paying for social services for illegal immigrants.
• Currently, over 377,000 illegal immigrants are imprisoned in American jails.

Since 2001, the cost of these incarcerations has soared to nearly $1.5 billion.

Possible Outcomes

It’s important to note that the Supreme Court’s eventual ruling on this case will not affect identity theft charges against Americans. However, it may dramatically change the way illegal immigrant cases are handled in the U.S.

For instance, if the Supreme Court rules in favor of prosecutors in the coming year, experts claim that immigration agents will use this ruling to conduct large-scale raids of job sites that employ illegal immigrants. In one sense, some see a ruling for the government as an open mandate to crack down on illegal immigration.

However, if the Supreme Court rules in favor of Flores-Figueroa, prosecutors fear that this will open up a large loophole for defendants who are illegal immigrants. According to these critics, any defendant illegally working in the U.S. can claim that he “didn’t know” his paperwork belonged to an actual person.

With homeland security and identity theft ever-present concerns in modern-day American, the Supreme Court’s ultimate decision on this case is expected to generate further controversy and a series of similar cases that will further define this initial ruling.

(Source: Washington Post)

Have you been charged with identity theft or another crime? If so, contact us today to talk to an experienced criminal defense attorney who will provide you with the legal support you need to get your charges reduced, if not dropped altogether.

Hewitt Employees Face Felony Charges

Three former employees of Hewitt Associates, a Chicago-based human resources firm, face felony charges for allegedly defrauding the company out of tens of thousands of dollars in tuition reimbursements.

Those recently charged include Channel Clemons, 33, Kristopher McLendon, 30, and Kenya McMillan, 28. These three are among a group of 14 former employees all suspected of scamming Hewitt out of over $100,000 tuition reimbursements.

While Clemons, McLendon and McMillan are the latest to have been arrested, they also face the most serious charges: In addition to being charged with forgery (which is the only charge their other 11 co-workers face), McLendon and McMillan also face charges of class-three felony theft. Clemons has been charged with felony forgery and class-two felony theft.

A class-two felony theft charge generally indicates that more money has been taken, the defendant has a record of theft or violence was used during the theft.

Details of the Case

According the Hewitt’s records, this group of employees had been collecting fraudulent payments for tuition reimbursements since October 2005.

Hewitt has a policy of repaying employees up to $5,000 for the cost of further education and/or training. To claim such reimbursements, employees are required to submit paperwork verifying they have enrolled in and ultimately completed the course or program. Employees also have to submit their final grades, as company reimbursements are only granted if students have performed adequately in the course.

According to authorities, each of the 14 employees facing felony charges scammed tuition reimbursements by doing one or more of the following:

• Submitting enrollment paperwork but failing to attend the stated classes
• Failing to complete classes despite turning in paperwork that stated they had completed the courses
• Forging grades on paperwork submitted to ensure they would receive reimbursements

Police Investigation Continues

Police are continuing to investigate this string of forgery and theft. Although they expect that more will be arrested in this case, authorities have stated that they don’t suspect that these employees acted together or as part of some conspiracy.

(Source: The Chicago Daily Herald)

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Former Congressional Candidate Charged with Fraud

Delecia Holt, a 46-year old resident of Orange County, California, has been arrested on criminal fraud charges for allegedly defrauding local businesses out of over $50,000.

In 2005, the same year her suspected fraud started, Holt ran to be a Representative as a write-in Republican candidate in Orange County’s 48th Congressional District, an area that includes the cities of Laguna Beach, Newport Beach and Irvine.

The following year, Holt ran again in San Diego’s 53rd Congressional District, which includes the areas of Downtown San Diego, Coronado and Imperial Beach. In both of her Congressional campaigns, Holt was one of the bottom ranking candidates, receiving only a negligible number of votes.

Holt’s Alleged Fraud

The charges of fraud against Holt date back to 2005 when Holt is suspected of having written a bad check for $13,000 as a down payment for a Mercedes-Benz. After Holt’s check eventually bounced, she never made a single payment on the luxury automobile.

Subsequently, as prosecutors allege, Holt continued her fraud-filled crime spree, which included:

• Racking up and skipping out on a $5,000 bill at an Orange County hotel (located in Lake Forest)
• Hosting a fundraiser comedy show that was intended to donate funds to Habitat for Humanity—However, no funds were raised, the hotel was never paid its hosting fee of $15,000 and all four comedians who performed at the event were never paid their performance fee of $2,000 (Checks Holt wrote to both the hotel and the comedians all bounced)
• Committing welfare fraud—Authorities are still conducting investigations to determine exactly how much Holt defrauded out of the welfare system

Currently, Holt is being held in the Women’s Intake/Release Center in Santa Ana, CA. While her bail is set at $55,000, prosecutors have asked that the source of funds be verified before Holt is officially released.

(Source: LA Times)

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Former Judge Sentenced to 10 Years for Corruption

A retired Louisiana judge, Michael Walker, was sentenced to 10 years in prison after being convicted of racketeering and corruption. Racketeering is the illegal act of extortion, in which intimidation is used to get individuals or businesses to pay money or perform favors.

Walker wasn’t the only Louisiana judge to face such corruption charges, as his cohort and peer Vernon Claville, a Juvenile Court Judge in the Caddo district, has also been convicted of racketeering and corruption. Claville is expected to be sentenced by mid-October 2008.

Evidence of Corruption

An FBI investigation, officially known as “Broken Gavel,” was responsible for uncovering evidence of Walker and Claville’s corruption earlier this year. According to investigators and prosecutors, Walker and an unnamed bail bondsman would receive cash bribes from defendants in northwest Louisiana in exchange for reduced bonds or expedited arraignments.

During the investigation, the FBI was able to tape phone conversations in which the bail bondsman arranged the bribes. The FBI also videotaped a few instances in which Walker took the bribes. Both pieces of evidence were presented to jurors at the trial.

Following his conviction, Walker officially stepped down from his post as judge. He made no statements during his trial or sentencing hearing.

Other Forms of Judicial Corruption

Unfortunately, this case highlights the taboo and unsettling topic of possible judicial corruption. While many tend to think of corrupt judges as those who simply exchange a ruling for cash (as was the case with Walker and Claville), there are a number of other ways that corruption can shake judicial neutrality. 

Some of the most common forms of judicial corruption typically include:

• Denying the admission of certain evidence
• Ignoring or supporting perjury
• Manipulating procedure
• Permitting unsubstantial claims or disregarding valid assertions

These and other acts of judicial corruption are not only unethical but also life altering for those facing criminal charges.

(Source: Find Law News)

Have you been charged with a crime or affected by judicial corruption? If so, contact us today to speak to an experienced criminal law attorney who will provide you with the legal support you need to get your charges reduced or help you find justice.

ID Thief Gets Hefty Federal Prison Sentence

Sacramento: A twenty-seven year-old woman from Sacramento with involvement in an identity theft operation has been given a sentence of twenty-seven months in a federal prison.

For the crimes of Conspiracy to Commit Bank Fraud and Possession of Stolen Mail, Michelle T. Rodriguez received a twenty-seven month sentence in federal prison. According to the District Attorney’s Office, in addition to the prison time, Rodriguez is to complete three years of supervised release, pay $200 in fines, and could potentially be forced to pay restitution.

Fake IDs Used to Steal Bank Account Information

Using bank account information from other people, Rodriguez conspired with unnamed perpetrators to manufacture checks. Authorities do have the name of the individual that allegedly helped Rodriguez obtain and steal identification and bank account information by taking other peoples’ mail, thirty-five year old Curtis Martinez of Carmichael. Rodriguez and Martinez allegedly created multiple fraudulent driver’s licenses to be able to use the stolen bank account information to cash the checks they were manufacturing.

Over 50 Victims of ID Theft in the Case

Currently, Martinez’s case and charges are still pending. Considering the fact that there are over fifty victims of this ID theft scheme, Martinez could be given a hefty prison sentence like the one given to Rodriguez.

Securities Fraud Lessons From Enron

Edward Martinovich, Attorney at Law and Jay Mykytiuk, Attorney at Law

The collapse of Enron and the federal indictments of many of its executives and directors threw a spotlight on the murky world of securities regulations. Enron wasnt the biggest financial collapse of the decade, but it was arguably the most profound, touching off a criminal investigation that so far has resulted in 16 guilty pleas, and several high-profile criminal trials.  Some of the crimes charged involved the illegal business practices that led to Enrons financial ruin.  But Enrons top executives face criminal charges based, not on what they did to cause the companys collapse, but what they allegedly did with the knowledge that the company was collapsing.

The Case Against Enron

The criminal charges against Enron executives are numerous, but the majority of them fall under the general umbrella of securities fraud. Securities fraud is an intentional misrepresentation made to investors that financially benefits the perpetrator.  The Securities and Exchange Commission (SEC) is the agency charged with overseeing trade of stocks, bonds and other investments that change value with the stock market’s movements.  Formed after the 1929 stock market crash to serve as a corporate watchdog, the SEC is responsible for prosecuting fraud and insider trading, as well as ensuring the accuracy of corporate financial disclosures.  Most securities fraud prosecutions begin with an SEC investigation and a referral to the Department of Justice.

Amidst all of the various criminal charges and convictions that resulted from the Enron scandal, Enrons top two executives, Ken Lay and Jeffrey Skilling, both former CEOs, emerged as the poster boys for corporate malfeasance.  Both Lay and Skilling are charged with two kinds of securities fraud.  First, a corporation and its executives can commit securities fraud when they intentionally mislead the public, usually by failing to disclose information about the health of the corporation, or by deliberately misrepresenting its financial health.  Second, those who have this information, fail to divulge it to the public, and then trade securities based on the knowledge, are guilty of insider trading.  But the prosecutions of Lay and Skilling have demonstrated that securities fraud cases are often based on circumstantial evidence and therefore, can be difficult to prove.

Omissions and Misrepresentations

Material omissions and misrepresentations are the subject of most securities fraud prosecutions.  Every public company is required by securities regulations to maintain detailed financial records and to regularly report this information to the Securities and Exchange Commission (SEC). If these records are found to be false, this constitutes criminal securities fraud.  In essence, the Enron defendants were charged with having knowledge that the financial health of Enron was failing rapidly, but making both public statements and filing financial disclosure forms that indicated just the opposite.

Insider Trading

The second form of criminal securities fraud that Enron executives are charged with is known as insider trading.  The most common variety of securities fraud, insider trading involves buying or selling securities based on knowledge that is not available to the general public.  Whether you are a corporate insider or a private investor, any person who trades on non-public information is subject to insider trading criminal prosecution.  In the three year period leading up to Enrons collapse, 28 Enron executives sold 21 million shares of Enron stock.  Both Lay and Skilling are amongst that number.

Defenses

There are several defenses to criminal securities fraud, and the cases against Lay and Skilling are far from open and shut.  In order to convict a defendant of criminal securities fraud, the government must prove that the defendant acted with fraudulent intent.  This means that the defendant intentionally committed the acts, or made the statements or omissions that led to violation of the law.  Innocent mistake, negligence, or other innocent conduct, are viable defenses for criminal securities fraud defendants.  Given the complex nature of the securities statutes, it is not a logical leap of faith to believe that they can be inadvertently violated.  Both Lay and Skilling used versions of this defense at trial.  Specifically, Lay argued that he had no knowledge of the true financial situation of Enron.  He trusted his underlings to run the company, and this trust turned out to be misplaced.  If true, Lays actions may certainly constitute negligence, but would not rise to the level of criminal fraud.

Proving insider trading can be equally as difficult.  The law is not absolutely clear about the discretion of executives and directors in determining whether certain information is “material,” or relevant, to investors.  It is actually a fairly common practice for executives to sell stock in advance of bad news.  It happens at scores of blue-chip companies, none of which are currently facing criminal investigations.

The case against Skilling is that he was part of an effort to illegally deceive investors, and that he pocketed millions of dollars in stock-option gains while in possession of troubling, non-public information.  But the problem with the governments case is that Skilling held on to a large percentage of his stock. In the two year period prior to his departure from Enron, Skilling always owned more than one million shares. Throughout that period, he exercised options and sold shares at about the same rate he acquired new ones.  In addition, more than a year before the company went bankrupt, Skilling executed an automatic stock-sale plan, instructing his broker to sell 10,000 shares a week. Under Securities & Exchange Commission rules, this type of program serves as a defense against insider-trading charges for sales executed after it began.

Penalties

Penalties for securities fraud and insider trading can be harsh.  Securities fraud convictions carry a maximum fine of $5,000,000 and a maximum sentence of twenty years imprisonment for each count.  Those convicted of insider trading may face up to a $1,100,000 fine and up to ten years imprisonment.  If convicted on all criminal counts, Lay and Skilling could spend the rest of their lives in prison.

No matter how the Lay/Skilling trial turns out, the lessons of Enron have already been written.  For corporate insiders and even casual investors, one of those lessons is that securities laws have teeth.  Prosecuting securities fraud is a government priority and in this new climate, poor business performance may often trigger SEC investigations.  Anything less than full disclosure of financial information will likely result in criminal charges, and fortuitously timed stock trades will raise red flags.  The lessons from Enron are numerous, and learning some of the important ones may keep you out of court.

Health Care Fraud Through Identity Theft and Impersonation

By Brian Barrido, Attorney at Law and Jay Mykytiuk

Health care fraud is committed when someone intentionally submits, or causes someone else to submit, false or misleading information for use in determining the amount of health care benefits payable.  One of the most common varieties of health care fraud is perpetrated through medical identity theft.  Medical identity theft occurs when someone uses another person’s health insurance card or identification with or without her permission to obtain medical services.  An insured person commits fraud when he lends his health insurance card to another, who then impersonates the insured in order to receive free care.  An uninsured person commits fraud when she impersonates the insured to receive benefits she is not entitled to.  Sometimes the imposter has permission from the insured.  Other times, the imposter has stolen the insureds insurance information and used it without permission.  Each activity is a crime.

Consequences of Health Care Fraud

Health care fraud is not a victimless crime.  Medical identity theft can have dire consequences for the individual whose identity is fraudulently used.  It sometimes results in erroneous entries on that persons current medical records or the creation of brand new, fictitious medical records in the victims name.  For the victim, this may mean that a false medical and financial history that follows them around for years.  Imagine failing a physical required for employment due to a disease in your records that does not belong to you, or receiving a co-pay bill for a surgery that you never underwent.  These are only a sample of the personal consequences of medical identity theft.

Beyond the personal effects, health care fraud, including medical identity theft, also has a negative impact on the healthcare system as a whole.  It is estimated that losses due to fraud add $100 billion to the annual cost of health care in the United States. For most employers, fraud increases the cost of providing benefits to their employees and, therefore, their overall cost of doing business. That translates into higher premiums, taxes, and out-of-pocket expenses as well as reduced benefits and diminished quality of care.

Allowing Others To Use Your Health Care Information Could Lead to Prosecution

Whether you allow someone to use your health care information, or you wrongfully use some elses information, you can be prosecuted for fraud.  Health care providers and law enforcement have begun to aggressively pursue those who commit health care fraud. Health care fraud can be prosecuted both civilly and criminally under a variety of statutes and regulations.  The nations largest healthcare network, Blue Cross/Blue Shield estimates that they pursued more than 20,000 cases of health care fraud last year, with 606 cases referred to law enforcement agencies. Of the referrals, 206 resulted in criminal convictions (see http://www.bcbs.com/antifraud).

Too many people do not realize the cost to individuals and the health care industry, which are incurred through health care fraud. For this reason many people do not believe health care fraud to be a serious crime. Penalties for health care fraud can be severe.  Depending upon which statute an offender is prosecuted under, each count could carry a maximum penalty of 10 years.  Fraud resulting in bodily injury to the insured carries a penalty of up to 20 years.  If authorities or a private insurer wants to investigate you for health care fraud, you should immediately contact an attorney.

Real Estate Fraud: State and Federal Fraud Laws

By Brian Barrido, Attorney at Law and Jay Mykytiuk

Anyone who has bought, sold, or shopped for a home this millennium knows firsthand that housing prices have undergone a dramatic and unprecedented increase. In the last two years alone, the price of a home rose 32% in Nevada, 23% in California, and 23% in Washington, D.C. One unfortunate by-product of this red-hot real estate market has been an increase in certain consumer and professional practices that come under the large umbrella known as real estate fraud.

Couples trying to get into their dream houses and real estate insiders trying to tap into massive profit potential have frequently and sometimes unknowingly broken state and federal fraud laws. Generally, fraud is a deliberate misrepresentation which causes another person to suffer damages, usually monetary losses. Examples of fraud in the real estate context include a borrower who exaggerates his financial situation to qualify for a loan, or a real estate professional that misrepresents the value of a property in order to turn a larger profit. Often it involves a combination of both.

Fraud for Housing

As home prices have skyrocketed, many buyers have found that, based on their income and assets or a poor credit rating, their dreams of owning a home have grown increasingly out of reach. Especially in hot real estate markets, potential homeowners often worry about whether they will ever be able to afford a home. Out of desperation, many borrowers, often with the help of loan originators, misrepresent their financial circumstances in an effort to get into a home before they are further priced out of the market. These misrepresentations are commonly known as fraud for housing.

Typical acts of fraud for housing involve providing false information on a home-loan application. Often, loan officers and consumers may work together to manufacture W-2s or credit scores, submit bogus financial and tax documents, or fake employment verifications. Not only are these buyers risking fines and jail time, but may also be drowning in a mortgage payment they cant really afford.

Home buyers could also face fraud charges for so-called “straw buyer” transactions. This real estate transaction involves a buyer with bad credit who finds a stand-in with a better financial position to purchase a home. The stand-in fills out the mortgage paperwork and obtains the property, then relinquishes the deed to the true buyer. While this process may be simply the means to an end of home ownership, it also constitutes real estate fraud.

For borrowers who have been untruthful on their loan documents, being detected is easier than they probably think. The IRS can access mortgage documents in an audit. If a borrower said he made $40,000 a year on his tax forms, but claimed an income of $80,000 on his mortgage application, this discrepancy would be readily apparent. Discovery would likely mean paying back taxes and penalties, and could possibly mean criminal prosecution for Fraud.

Fraud for Profit

Real estate investors and professionals are also at risk of criminal prosecution for certain business practices. In a 2005 report, the Federal Bureau of Investigations Financial Crimes Section has indicated that its main focus in the real estate fraud area is on illegal activity known as fraud for profit. Fraud for Profit is sometimes referred to as “Industry Insider Fraud” and, like it sounds, involves real estate insiders who run afoul of fraud statutes in their pursuit of financial gain.

The most common activity that may land real estate investors and professionals in hot water is known as flipping. Flipping involves buying a house, holding on to it for a short time, and then selling it at a higher price then one paid for it. Often this process involves buying an undervalued house, fixing it up, and putting it back on the market at a higher price. By itself, this process is not per se illegal. Buying low and selling high is still considered good old-fashioned capitalism. But when investors, mortgage brokers, loan officers, and appraisers get together to paint a better picture of a homes worth, fraud for profit is often perpetrated.

There are many variations of illegal flipping, but it often includes inflating appraisals, gifting down payments, drawing up false W-2′s, or writing inaccurate credit letters. The FBI has specifically targeted property flippers. As the industry has become more concerned with fraudulent practices, those engaged in flipping have come under closer scrutiny. Making large profits on quick home sales is certainly still permissible. However, real estate professionals that conduct business with anything less than complete candor may increasingly find themselves targets of fraud investigations.

The Risks

Would-be homebuyers who get caught being creative (Fraud) with their loan applications, will likely have to pay back any money they received, and may even spend time in prison. While to date, prosecutions of borrowers have been rare, the FBIs increased efforts to combat real estate fraud may result in more charges filed against individual homebuyers. The much more common targets of fraud investigations have been real estate investors, mortgage brokers, and appraisers who have engaged in questionable business practices.

Currently, most real estate fraud cases are prosecuted under federal law. Federal statutes include: False Statements on a Loan or Credit Application; Mail Fraud; Wire Fraud; Bank Fraud; and a host of others. In recent years Congress has dramatically increased the penalties for knowingly making false statements for the purpose of influencing the action of any insured banking institution on a loan or certain other types of financial transactions. The current federal penalties for this crime are a maximum of 30 years imprisonment and/or a fine of $1 million.

States have also begun to get tough on mortgage fraud / Fraud for Profit. A new law in Georgia increases the penalties for residential mortgage fraud. Those convicted can be sentenced one to 10 years in prison and be fined up to $5,000, while those found guilty of multiple frauds can be imprisoned for three to 20 years and be fined up to $100,000. Other states have considered similar provisions amid growing concerns with real estate fraud.

Whether you are a home buyer who stretched the truth on a loan application in order to buy that dream house, or a real estate professional who massaged numbers to increase profit, you may have committed real estate fraud. A skilled criminal attorney may be able to help you avoid a stiff financial penalty or jail time. More importantly, knowledge of state and federal fraud laws may help you avoid needing an attorney at all.