Cheronis & Parente LLC

Criminal Defense Blog

ON BEHALF OF CHERONIS & PARENTE LLC   /   February 15, 2022

How may I defend against a financial institution fraud charge?

When prosecuting financial institution fraud charges, law enforcement may allege that you engaged in an action of deceit involving a bank. Cornell Law School’s Legal Information Institute website defines financial institution fraud by describing deceitful actions taken against a government-regulated bank.

The U.S. government insures and regulates lenders offering commercial and mortgage loans. Fraud allegations may arise after submitting a loan application. If a bank officer approved a loan but did not review it carefully, you could find yourself in trouble with the law. You may, however, exercise your rights under the U.S. Constitution to defend against a prosecutor’s charges.

How may a loan application reflect fraudulent conduct?

The Federal Deposit Insurance Corporation notes that fraud involves providing false representations for money. Submitting inaccurate financial statements with a loan application may raise red flags. When bank officers neglect to verify the financial information, however, applicants may later face allegations of fraud.

To prevent fraud, federal law requires lenders to perform customer due diligence. Before accepting or denying funding requests, banks need to vet loan applicants. As reported by, automated tools and artificial intelligence often verify identities and other submitted information.

How may I defend against felony fraud allegations?

Financial fraud convictions generally require prosecutors to prove a defendant provided falsified documents with the intention of obtaining funds deceptively. If you did not have the intent to deceive a bank, you may assert your defense, as noted by the U.S. Department of Justice. You may also provide records or receipts to show that you submitted what you believed was accurate information.

In the quest to offer new bank customers faster service and greater convenience, automated technology could fail to catch inaccurate information on a loan application. A prosecutor’s fraud allegations may result from faulty AI vetting or a bank officer’s lack of due diligence.

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