The "good old days" are gone forever. Undertaking any matter wherein a Lender is defrauded can land you in prison.
FEDERAL CRIMES
"RICO" Crimes Aka Enterprise Crimes Aka "Engaging In A Pattern Of Corrupt Activity" Aka "Pattern Crimes"
Enterprise crimes consist of criminal activity carried out by an organized enterprise. The "enterprise" can be organized for either legal or illegal purposes.
On the Federal level, the "Racketeer Influenced and Corrupt Organizations Act" (RICO) (18 U.S.C.A. § 1961 et seq.) is the centerpiece of the Organized Crime Control Act. RICO is a group of statutes that define and set punishments for organized crime. The act's provisions apply to any enterprise that engages in racketeering activity. Racketeering is the act of engaging in a pattern of criminal offenses. The list of offenses that constitute racketeering when committed by an enterprise more than once is lengthy. It includes extortion, fraud, money laundering, federal drug offenses, murder, kidnapping, gambling, arson, robbery, bribery, dealing in obscene matter, counterfeiting, embezzlement, obstruction of justice, obstruction of law enforcement, unlawful receipt of welfare funds, interstate transport of stolen property, sexual exploitation of children, trafficking in counterfeit labels for audio and visual works, criminal infringement of copyrights, trafficking in contraband cigarettes, white slavery, violation of payment and loan restrictions to labor unions, and harboring, aiding, assisting, or transporting illegal aliens. RICO also includes forfeiture provisions that allow the government to take the property of parties found guilty of violations of the act.
MORTGAGE FRAUD PROSECUTED UNDER 18 U.S.C. § 1010 (HUD & FHA FRAUD) 18 U.S.C. § 1010
THE CRIME: It is a crime for a person for the purpose of obtaining any loan or advance of credit from any person, partnership, association, or corporation with the intent that such loan or advance of credit shall be offered to or accepted by the Department of Housing and Urban Development for insurance, or for the purpose of obtaining any extension or renewal of any loan, advance of credit, or mortgage insured by such Department, or the acceptance, release, or substitution of any security on such a loan, advance of credit, or for the purpose of influencing in any way the action of such Department,make, pass, utter, or publish any statement, knowing the same to be false, or alter, forge, or counterfeit any instrument, paper, or document, or utter, publish, or pass as true any instrument, paper, or document, knowing it to have been altered, forged, or counterfeited, or willfully overvalue any security, asset, or income.
THE PUNISHMENT: The punishment under this section is a fine, imprisonment for not more than two years, or both.
MORTGAGE FRAUD PROSECUTED UNDER 18 U.S.C. § 1014 (FALSE STATEMENTS ON LOAN APPLICATIONS) 18 U.S.C. § 1014
THE CRIME: Under section 1014, it is a crime for a person to knowingly make any false statement or report, or willfully overvalue any land, property or security, for the purpose of influencing in any way the action of the Farm Credit Administration, Federal Crop Insurance Corporation or a company the Corporation reinsures, the Secretary of Agriculture acting through the Farmers Home Administration or successor agency, the Rural Development Administration or successor agency, any Farm Credit Bank, production credit association, agricultural credit association, bank for cooperatives, or any division, officer, or employee thereof, or of any regional agricultural credit corporation established pursuant to law, or a Federal land bank, a Federal land bank association, a Federal Reserve bank, a small business investment company, as defined in section 103 of the Small Business Investment Act of 1958 (15 U.S.C. 662), or the Small Business Administration in connection with any provision of that Act, a Federal credit union, an insured State-chartered credit union, any institution the accounts of which are insured by the Federal Deposit Insurance Corporation, the Office of Thrift Supervision, any Federal home loan bank, the Federal Housing Finance Board, the Federal Deposit Insurance Corporation, the Resolution Trust Corporation, the Farm Credit System Insurance Corporation, or the National Credit Union Administration Board, a branch or agency of a foreign bank (as such terms are defined in paragraphs (1) and (3) of section 1(b) of the International Banking Act of 1978 [12 USCS § 3101(1) and (3)]), or an organization operating under section 25 or section 25(a) of the Federal Reserve Act, upon any application, advance, discount, purchase, purchase agreement, repurchase agreement, commitment, or loan, or any change or extension of any of the same, by renewal, deferment of action or otherwise, or the acceptance, release, or substitution of security therefor.
THE PUNISHMENT: The punishment for a violation of section 1014 is a fine of not more than $1,000,000, imprisonment not more than 30 years, both.
MORTGAGE FRAUD PROSECUTED UNDER 18 U.S.C. § 1341 (MAIL FRAUD)
THE CRIME: Mail fraud is an act of fraud using the U.S. Postal Service, such as making false representations through the mail to obtain an economic advantage. Black's Law Dictionary 687 (8th ed. 2005) It is substantially similar to wire fraud,
THE PUNISHMENT: The punishment for a violation of section 1343 is a fine, imprisonment for up to 20 years, or both. If a financial institution is harmed, the person can be fined as much as $1,000,000, imprisoned for up to 30 years, or both.
MORTGAGE FRAUD PROSECUTED UNDER 18 U.S.C. § 1343 (WIRE FRAUD)
THE CRIME: Under section 1343, it is a crime for a person who has devised or intends to devise a scheme or artifice to defraud, or to obtain money or property by means of false or fraudulent pretenses representations, or promises to transmit, or cause to be transmitted by means of wire, radio, or television communication, any writings
signs signals pictures, or sounds for the purpose of executing the scheme or artifice. 18 U.S.C. § 1343
Much like the wire fraud statute, 18 U.S.C. § 1341, it is simpler to say that wire fraud consists of devising a scheme or artifice to defraud and then using the nation's telecommunications networks to carry that scheme out.
THE PUNISHMENT: A violation of section 1343 can be punished by a fine, imprisonment for not more than 20 years, or both. If a violation of section 1343 affects a financial institution, the punishment will be a fine of not more than $1,000,000, imprisonment for not more than 30 years, or both. 18 U.S.C. § 1343 (2005).
MORTGAGE FRAUD PROSECUTED UNDER 18 U.S.C. § 1956 & 1957 (MONEY LAUNDERING)
THE CRIME: Money Laundering is "[t]he act of transferring illegally obtained money through legitimate people or accounts so that its original source cannot be traced." Black's Law Dictionary 1027 (8th ed. 2005). It is a crime that is often committed along with some other wrongful act.
There are quite a few ways to violate section 1956. Section 1956(a)(1): Under subsection (a)(1) it is a crime for a person, "knowing that the property involved in a financial transaction represents the proceeds of some form of unlawful activity" to: conduct or attempt to conduct such a financial transaction which in fact involves the proceeds of specified unlawful activity with the intent to promote the carrying on of specified unlawful activity, 18 U.S.C. § 1956(a)(1)(A)(i); or with intent to engage in conduct constituting a violation 26 U.S.C. §§ 7201 or 7206 (relating to the Internal Revenue Code), 18 U.S.C. § 1956(a)(1)(A)(ii) ; or knowing that the transaction is designed in whole or in part to conceal or disguise the nature, the location, the source, the ownership, or the control of the proceeds of specified unlawful activity, 18 U.S.C. § 1956(a)(1)(B)(i); or to avoid a transaction reporting requirement under State or Federal law. Id. § 1956(a)(1)(B)(ii).
Section 1956(a)(2): Under subsection (a)(2), it is a crime for a person to transport, transmit, or transfer, (or attempt to transport, transmit, or transfer) a monetary instrument or funds from a place in the United States to or through a place outside the United States or to a place in the United States from or through a place outside the United States with the intent to promote the carrying on of specified unlawful activity, 18 U.S.C. § 1956(a)(2)(A); or knowing that the monetary instrument or funds involved in the transportation represent the proceeds of some form of unlawful activity and knowing that such transportation, transmission, or transfer is designed in whole or in part to conceal or disguise the nature, the location, the source, the ownership, or the control of the proceeds of specified unlawful activity, Id. § 1956(a)(2)(B)(i); or to avoid a transaction reporting requirement under State or Federal law. Id. § 1956(a)(2)(B)(ii).
Section 1956(a)(3): Under subsection (a)(3), it is a crime for a person to have the intent to promote the carrying on of specified unlawful activity, 18 U.S.C. § 1956(a)(3)(A); conceal or disguise the nature, location, source, ownership, or control of property believed to be the proceeds of specified unlawful activity, Id. § 1956(a)(3)(B); or avoid a transaction reporting requirement under State or Federal law, Id. § 1956(a)(3)(C), and conduct or attempt to conduct a financial transaction involving property represented to be the proceeds of specified unlawful activity, or property used to conduct or facilitate specified unlawful activity. Id. § 1956(a)(3).
THE PUNISHMENT: The punishment for a violation of 18 U.S.C. § 1956(a)(1) is a fine of not more than $500,000 or twice the value of the property involved in the transaction, whichever is greater, imprisonment for not more than twenty years, or both. 18 U.S.C. § 1956(a)(1) The punishment for a violation of 18 U.S.C. § 1956(a)(2) is a fine of not more than $500,000 or twice the value of the monetary instrument or funds involved in the transportation, transmission, or transfer, whichever is greater, imprisonment for not more than twenty years, or both. 18 U.S.C. § 1956(a)(2) For the purpose of the offense described in18 U.S.C. § 1956(a)(2)(B), the defendant's knowledge may be established by proof that a law enforcement officer represented the matter specified in 18 U.S.C. § 1956(a)(2)(B) as true, and the defendant's subsequent statements or actions indicate that the defendant believed such representations to be true. 18 U.S.C. § 1956(a)(2). The punishment for a violation of 18 U.S.C. § 1956(a)(3) is a fine under this title imprisonment for not more than 20 years or both. 18 U.S.C. § 1956(a)(3). For purposes of 18 U.S.C. §§ 1956(a)(3) and (2), the term "represented" means any representation made by a law enforcement officer or by another person at the direction of, or with the approval of, a Federal official authorized to investigate or prosecute violations of this section. 18 U.S.C. § 1956(a)(3).
MORTGAGE FRAUD PROSECUTED UNDER 18 U.S.C. § 2314 (INTERSTATE TRANSFER OF FUNDS)
18 U.S.C. § 2314
THE CRIME: It is a crime for a person to transports, transmits, or transfers in interstate or foreign commerce any goods, wares, merchandise, securities or money, of the value of $5,000 or more, knowing the same to have been stolen, converted or taken by fraud. It is also a crime for a person, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, to transport or cause to be transported, or induce any person or persons to travel in, or to be transported in interstate or foreign commerce in the execution or concealment of a scheme or artifice to defraud that person or those persons of money or property having a value of $5,000 or more. It is furthermore, a crime for a person, with unlawful or fraudulent intent, transport in interstate or foreign commerce any falsely made, forged, altered, or counterfeited securities or tax stamps, knowing the same to have been falsely made, forged, altered, or counterfeited. It is also a crime under this section for a person, with unlawful or fraudulent intent, to transport in interstate or foreign commerce any traveler's check bearing a forged countersignature. It is a crime for a person with unlawful or fraudulent intent, to transport in interstate or foreign commerce, any tool, implement, or thing used or fitted to be used in falsely making, forging, altering, or counterfeiting any security or tax stamps, or any part thereof.
THE PUNISHMENT: The punishment for a violation of section 2314 is a fine under this title, imprisonment for not more than ten years, or both.
MORTGAGE FRAUD PROSECUTED UNDER 26 U.S.C. § 7206(2) (FILING FALSE TAX RETURNS)
THE CRIME: It is a crime for a person to willfully attempt in any manner to evade or defeat any tax imposed by this title or the payment thereof, or to file a false return in an effort to obtain a benefit.
THE PUNISHMENT: Violation will constitute a felony, and the punishment for doing so is a fine of not more than $100,000 ($500,000 in the case of a corporation), imprisonment for not more than 5 years, or both. Furthermore, the defendant will have to pay the costs of prosecution
MORTGAGE FRAUD PROSECUTED UNDER 42 U.S.C. § 408 (USE OF ANOTHER'S SSN)
THE CRIME: The operative language under this statute is 42 U.S.C. § 408(a)(7)(B) which prohibits a person from falsely representing, with intent to deceive, a number to be the social security account number assigned by the Commissioner of Social Security, when it is in fact someone else's number. This behavior applies if it is done for the purpose of causing an increase in any payment authorized under 42 U.S.C. §§ 401 et seq. (or any other program financed in whole or in part from Federal funds), or for the purpose of causing a payment under 42 U.S.C. §§ 401 et seq. (or any such other program) to be made when no payment is authorized thereunder, or for the purpose of obtaining (for himself or any other person) any payment or any other benefit to which he (or such other person) is not entitled, or for the purpose of obtaining anything of value from any person, or for any other purpose.
THE PUNISHMENT: A person who violates section 408(a)(7)(B) is subject to a fine, imprisonment for not more than five years, or both.