Bank fraud in New York is a serious offense that can be prosecuted at both the state and federal levels. Here’s a summary of key points regarding bank fraud in New York:
Definition and Types
Bank fraud involves obtaining assets, money, or property from a financial institution through fraudulent means. Common types of bank fraud include:
- Check fraud (e.g., check kiting, fake payroll checks)
- Credit card fraud
- Fraudulent loans
- Embezzlement
- Forgery and impersonation
- Rogue trading
Legal Framework
- State Law: New York state law covers various criminal activities that constitute bank fraud.
- Federal Law: The federal bank fraud statute (18 U.S.C. §1344) criminalizes:
- knowingly executing a scheme to defraud a financial institution; or
- obtain any of the moneys, funds, credits, assets, securities, or other property owned by, or under the custody or control of, a financial institution, by means of false or fraudulent pretenses, representations, or promises.
Penalties
The severity of penalties depends on factors such as the amount involved and whether it’s a state or federal charge:
- State charges can range from misdemeanors to felonies
- Federal charges can result in up to 30 years in prison and fines up to $1 million
- Restitution may also be required
Legal Considerations
- Intent is a crucial element in proving bank fraud
- Misrepresentations must be material to influence a bank’s actions
- Cases often involve multiple charges (e.g., conspiracy, identity theft)
Defense Strategies
Common defenses include:
- Lack of intent to defraud
- Immateriality of misrepresentations
- Challenging evidence or search warrants
Given the complexity of bank fraud cases and the potential for severe penalties, it’s crucial for individuals accused of bank fraud in New York to seek experienced legal representation immediately.
There are several provisions in the New York Penal Law that cover fraudulent activities related to banking and financial institutions. The most relevant statutes are:
Scheme to Defraud
New York Penal Law Section 190.65 criminalizes a “Scheme to Defraud in the First Degree,” which can apply to bank fraud cases1. This statute makes it a Class E felony when a person:
- Engages in a scheme to defraud one or more persons of property valued over $1,000, or
- Engages in a scheme to defraud more than ten persons
This law can be applied to various types of bank fraud schemes involving multiple victims or significant monetary amounts.
Grand Larceny
Depending on the amount involved, bank fraud can also be prosecuted under New York’s Grand Larceny statutes:
- Grand Larceny in the Fourth Degree (NY Penal Law 155.30): Theft of property valued over $1,000
- Grand Larceny in the Third Degree (NY Penal Law 155.35): Theft of property valued over $3,000
- Grand Larceny in the Second Degree (NY Penal Law 155.40): Theft of property valued over $50,000
- Grand Larceny in the First Degree (NY Penal Law 155.42): Theft of property valued over $1 million
Falsifying Business Records
Bank fraud often involves falsifying documents or records. This can be prosecuted under:
- Falsifying Business Records in the First Degree (NY Penal Law 175.10): A Class E felony when a person falsifies business records with intent to commit or conceal another crime46
Issuing a False Financial Statement
NY Penal Law Section 175.45 criminalizes “Issuing a False Financial Statement,” which is particularly relevant to bank fraud cases. This Class A misdemeanor occurs when a person, with intent to defraud:
- Knowingly makes or utters a written instrument that inaccurately describes someone’s financial condition or ability to pay, or
- Represents that a prior financial statement is still accurate when they know it’s materially inaccurate
While these statutes cover many aspects of bank fraud, it’s important to note that serious cases of bank fraud are often prosecuted under federal law, which has specific statutes dedicated to bank fraud. However, the New York statutes provide a framework for prosecuting various fraudulent activities related to banking at the state level.
It is imperative to call a white collar crime or NY criminal defense lawyer if you have been charged with bank or financial fraud. If you are a victim, an New York personal injury attorney can help. Call us know to see if we can help you.