18 U.S.C. § 1014 – Loan and Credit Applications Generally
This statute criminalizes false statements and overvaluations made to influence federally connected lenders and credit agencies.
What this statute covers.
Section 1014 targets false statements, reports, and intentional overvaluations made in connection with loan, credit, insurance, or guarantee applications involving a wide range of federally regulated or federally insured financial institutions.
The statute applies regardless of whether the application is approved or the credit is ultimately extended.
Core prohibited conduct.
A person violates this statute if they knowingly:
- Make a false statement or report
- Willfully overvalue land, property, or security
when doing so for the purpose of influencing the action of a covered federal agency, federally insured institution, or related lender.
Covered institutions.
The statute applies to statements made to, or intended to influence, entities including:
- FDIC-insured banks and credit unions
- The Federal Reserve and Federal Home Loan Banks
- The Small Business Administration
- Farm Credit and agricultural lending institutions
- Federal housing and mortgage-related agencies
- Mortgage lending businesses and federally related mortgage lenders
- Branches or agencies of foreign banks operating in the U.S.
This breadth makes § 1014 one of the most commonly charged federal fraud statutes in financial investigations.
Penalties.
- Up to $1,000,000 in fines
- Up to 30 years in federal prison
- Or both
If you are under investigation or charged for alleged false statements tied to a loan, credit, or mortgage application,
call (314) 900-HELP or contact our federal criminal defense attorneys.
