18 U.S.C. § 1344 – Bank fraud (white-collar)
This law makes it a federal crime to defraud a bank or attempt to obtain bank property through false or fraudulent means.
Section 1344 is the primary federal bank fraud statute. It applies when someone knowingly carries out, or attempts to carry out, a scheme designed to cheat a financial institution or unlawfully obtain money or property that belongs to or is controlled by a bank.
The law covers a wide range of conduct, including false loan applications, fraudulent withdrawals, fake documents, misrepresentations to lenders, and schemes that cause a bank to release funds it otherwise would not have approved.
What the law prohibits.
A person violates this statute if they knowingly:
- Defraud a financial institution through a scheme or plan intended to cause the bank a loss.
- Obtain bank money, funds, or assets by using false statements, fraudulent promises, or deceptive representations.
- Attempt to carry out a bank fraud scheme, even if no money is ultimately obtained.
The government does not need to show that the scheme succeeded. An attempt or partial execution of the fraud is enough to trigger criminal liability.
Penalties.
Bank fraud is a serious federal felony. A conviction under § 1344 can result in:
- up to 30 years in federal prison,
- fines of up to $1,000,000, and
- restitution to the financial institution.
If you’re facing allegations involving bank fraud, speak with a federal criminal defense attorney as soon as possible. Call (314) 900-HELP or contact our criminal defense team to discuss your situation.
