Defendants accused of mortgage or financial institution fraud often face multiple charges that can include not only the crime of theft by deception, but conspiracy and money laundering as well. Prosecutors pursuing these kinds of fraud cases typically work for long periods of time to gather a substantial amount of evidence before indicting the defendant or defendants allegedly involved. As a result, mortgage fraud and financial institution fraud cases can be particularly challenging to defend against.
That's why you need an experienced criminal defense attorney if you have been charged with mortgage or financial institution fraud. Depending on the charges you're facing, you could be spending years in prison on top of paying hundreds of thousands of dollars in fines. The Lento Law Firm's Criminal Defense Team knows how challenging defending against these kinds of “white collar” charges can be. We have the experience and background to protect your rights and defend you against the charges you're facing. Call the Lento Criminal Defense Team today at 888.535.3686 or fill out our contact form, and we will schedule a call to discuss your case and tell you how we can help.
Financial Fraud in New Jersey
New Jersey does not have a specific law that focuses on mortgage fraud or financial institution fraud. These kinds of cases are typically charged under the state's “Theft by Deception” statute. That law states that a person is guilty of theft when they purposely obtain “property of another by deception.”
“Deception” can take several forms. One is creating or reinforcing a “false impression,” including false impressions as to value, as might happen if real property were intentionally overvalued for purposes of securing a loan. Deception can also involve acts designed to prevent the lender from acquiring information about the transaction that might affect their decision whether to approve the loan. Deception can also involve failing to correct a false impression that the defendant created.
Penalties for Theft by Deception
Theft by deception can be charged at different levels, depending on the value of what was allegedly improperly taken by the defendant. Practically speaking, most theft by deception cases involving mortgage or financial institution fraud are going to be crimes of the second degree, which is what can be charged when the amount allegedly taken was $75,000 or more. If the amount allegedly taken is more than $500 but less than $75,000, it can be charged as a crime of the third degree.
Second-degree crimes in New Jersey can result in a sentence of between 5 and 10 years in prison. Third-degree crimes can land you in prison for between 3 and 5 years.
Other Charges
Defendants charged with theft by deception are frequently charged with other crimes as well. That is because, in many cases, more than one defendant is allegedly involved in a scheme to defraud a lender. It is also because defendants are often accused of trying to conceal the proceeds of the alleged theft, both to avoid having the crime detected and to avoid paying taxes on it.
As a result, where there is more than one defendant allegedly involved in a mortgage or financial institution fraud case, they will frequently be charged with conspiracy. Conspiracy is basically a crime of agreement. It can be charged when two or more persons agree that at least one of them “will engage in conduct which constitutes a crime,” or that at least one of them will attempt to commit a crime. Conspiracy can be charged even if the attempt to commit the agreed-upon crime is not successful.
Conspiracy to commit theft by deception will be charged at the same level as the theft by deception charge. So if a defendant is charged with theft by deception as a result of mortgage or financial institution fraud that results in the defendant allegedly taking more than $75,000 – a crime of the second degree – any conspiracy charge will also be a crime of the second degree.
As mentioned above, another charge that white collar defendants frequently face is money laundering. Money laundering can be charged when a defendant allegedly “engages in a transaction” that is meant either to “promote the criminal activity” or to conceal the source of “property derived from criminal activity.” It can also be charged where the purpose is to “avoid a transaction reporting requirement.”
As with theft by deception, money laundering offense levels depend on the amount of money involved. If it is allegedly $500,000 or more, money laundering can be charged as a crime of the first degree. For amounts of at least $75,000 but less than $500,000, it is a crime of the second degree. When the amount is less than $75,000, it is a crime of the third degree.
Where Are Theft by Deception Criminal Cases Heard?
Theft by deception cases will be heard by the Superior Court in the New Jersey county in which the charges have been filed. As with all criminal cases, prosecutors must prove their case beyond a reasonable doubt.
Financial crime trials can be lengthy. Prosecutors often must introduce a substantial amount of evidence to support their allegations, and at the same time, need to make the evidence understandable to a jury. That can be difficult in complicated cases involving multiple transactions, competing appraisals of the value of loan collateral, and dozens or hundreds of emails, texts, and voice messages between the defendants and others involved in the transaction.
Because these cases can be challenging to prosecute, many of them resolve themselves before trial. Whether to accept a plea bargain offered by prosecutors, however, is not always an easy decision. In some cases, there may be some room to negotiate. When you work with one of the experienced attorneys from the Lento Law Firm's Criminal Defense Team, we can advise you when it comes to plea bargains and can often negotiate better terms than what prosecutors initially offered.
One thing that can also affect a plea bargain negotiation is when the prosecutor knows that the defendant's attorney is willing to take the case to trial if necessary. The attorneys from the Lento Law Firm's Criminal Defense Team have the kind of courtroom experience that gives them credibility with prosecutors.
Federal Charges
Mortgage or financial institution fraud can also be a federal crime. Here, too, there is no federal statute that is specifically called mortgage fraud or financial institution fraud. The applicable federal criminal statute relates to “Loan and credit applications generally,” among other transactions. The crime in this case is marking “any false statement or report” or to willfully overvalue and “land, property or security” in order to influence a bank or credit union in connection with any purchase agreement, commitment, or loan (among other transactions).
Penalties for violating the federal statute can be severe: up to 30 years in prison and a fine of up to $1,000,000.
As with state charges in New Jersey, defendants accused of violating the federal statute may also face federal conspiracy or federal money laundering charges. In addition, defendants may be charged with mail or wire fraud, bank fraud, or tax evasion, depending on the facts of the particular situation.
Federal Trials in New Jersey
If you are charged by federal prosecutors, your case will be heard in federal court. There are three federal courthouses in New Jersey, located in Camden, Newark, and Trenton. The federal system is a completely separate system from the New Jersey state court system, with its own rules and procedures.
If you have been charged with violating one or more federal statutes, you need the help of a criminal defense attorney who has experience defending clients in federal cases. At the Lento Law Firm, our Criminal Defense Team includes attorneys who have years of experience defending clients in federal court and are ready to help you with your case.
The Lento Law Firm Can Defend You Against Financial Fraud Charges
If you've been accused by state or federal prosecutors of one or more crimes based on alleged mortgage or financial institution fraud, the Lento Law Firm's Criminal Defense Team is here to help. Our criminal defense attorneys have years of experience protecting the rights of people who have been accused of a wide range of white collar crimes. We understand what it takes to defend against these kinds of serious charges.
We can also help if you are being investigated but have not yet been charged with mortgage or financial institution fraud. In many cases, this is the best time to have an attorney on your team, because we can discuss your case with law enforcement or prosecution personnel while also protecting your rights. Depending on the situation, this could lead to prosecutors electing not to file charges or reducing the charges they were considering filing.
When one of our experienced criminal defense attorneys is on your team, you will have the benefit of their years of experience helping other defendants in similar situations. We will be fighting to protect your rights from day one and making sure that prosecutors follow the procedural and evidentiary rules that apply in criminal cases.
To learn more about how the Lento Law Firm's Criminal Defense Team can protect your rights if you are being investigated for or have been accused of mortgage or financial fraud, call us at 888.535.3686 or fill out our contact form, and we will schedule a confidential consultation to discuss your case.
