Wire Fraud, Mail Fraud or Bank Fraud Could Send You to Federal Prison

Are you being charged with wire fraud, mail fraud or bank fraud in California? Even if you conspire to commit mail, wire or bank fraud, and you do not actually complete the fraud, you could be sentenced to time in federal prison. If you are being investigated for fraud, it is important that you speak to one of our federal attorneys experienced in fraud crimes. Here’s an example of how a man was recently sentenced to federal prison for conspiring to defraud mortgage lenders.

Recent Fraud Case in California Prosecuted in Federal Court

On Sept. 16, Bakersfield man Eric Ray Hernandez was sentenced to more than 10 years in federal prison for conspiracy to commit mail fraud, wire fraud and bank fraud, defrauding mortgage lenders out of approximately $6,037,541 in an elaborate false mortgage loan scheme.¹ The court also ordered Hernandez to pay a forfeiture judgment of $6,037,541 to the United States in addition to the more than $6 million in restitution to the victims.

Hernandez was sentenced in U.S. District Court for his role in orchestrating a conspiracy with other defendants to defraud mortgage lenders by submitting fake loan applications and fraudulent documentation to lenders.

Between 2005 and 2007, Hernandez worked in mortgage brokerages in Bakersfield, submitting to lenders loan applications containing misleading information regarding the other defendant’s income, assets, employment, and the borrower’s intent to reside in the properties as owner-occupants. The conspiracy also included fabricating supporting documentation in support of the fraudulently applied for loans.²

Elements of Mail and Wire Fraud in California

There are three elements to mail and wire fraud:

• Intent;
• A “scheme or artifice to defraud” or the obtaining of property by fraud; and,
• A mail or wire communication.

To be fraudulent, a misrepresentation must be material. Additionally, mail fraud applies only to U.S. mailings domestically sent between states. For example, if you mail something fraudulently via United States Postal Service, UPS or FEDEX from California and it successfully arrives in another state, you are guilty of committing mail fraud and are subject to prosecution by the U.S. Attorney General’s Office.

Wire fraud has been expanded by Congress to include foreign wire communication or interstate connections via the internet, by telephone or radio communication.

Conspiracy to Commit Fraud can be Prosecuted as if You Actually Committed Fraud

There’s no difference in the law if you conspire to defraud someone else or a business out of money or property and actually completing the fraud. The government can prosecute you identically for either of these offenses.

Punishment for Conspiracy to Commit or Committing Mail, Wire or Bank Fraud

If you are convicted of a federal offense that involves any fraudulent scheme to intentionally deprive another of property or “honest services” utilizing mail or wire communication, you face up to 20 years in prison, up to $1,000,000 in fines, or both (18 U.S.C. §§ 1341, 1343). That’s in addition to any restitution you have to pay back to your victims.

Committing bank fraud gets even worse. Pursuant to 18 U.S.C. § 1344, you face up to 40 years imprisonment, a $1,000,000 fine, or both if you knowingly defraud or attempt to defraud:

• A financial institution; or
• Obtain any of the money or other funds, assets, securities, or other property owned by, or under the custody or control of, a financial institution,

To defraud means to obtain through false or fraudulent pretenses, representations, or promises.

You Need to Contact a Wallin & Klarich Attorney Experienced in Federal Fraud Defense

You need the experienced legal representation that the law firm of Wallin & Klarich can provide. At Wallin & Klarich, our attorneys have over 40 years of experience successfully defending clients facing the serious consequences of a fraud-related crime. Our attorneys have helped hundreds of clients avoid long sentences and heavy fines by examining every aspect of the charges against you in order to expose the weaknesses in the government’s case. If there’s a way to win, we will pursue it. We could be the difference between your freedom or you spending decades of your life behind bars.

With offices in Los Angeles, Sherman Oaks, Torrance, Tustin, San Diego, Riverside, San Bernardino, Ventura, West Covina and Victorville, the attorneys at Wallin & Klarich experienced in fraud crimes are here to defend you in either state and federal court. We will do everything we can to get you the best possible result in your case.

Call us today at (877) 4-NO-JAIL or (877) 466-5245 for a free telephone consultation. We will get through this together.

^{1. [Federal Bureau of Investigation: Bakersfield Man Sentenced to Nearly 11 Years in Prison in $6 Million Mortgage Fraud Scheme (September 16, 2013); http://www.fbi.gov/sacramento/press-releases/2013/bakersfield-man-sentenced-to-nearly-11-years-in-prison-in-6-million-mortgage-fraud-scheme]↩}

^{2. [The Bakersfield Californian: Mortgage Fraud Scheme nets Bakersfield Man more than 10 Years in Prison (September 16, 2013); http://www.bakersfieldcalifornian.com/local/breaking-news/x558589712/Mortgage-fraud-scheme-nets-Bakersfield-man-more-than-10-years-in-prisonidget_71&utm_medium=latest_entries_widget&utm_campaign=synapse]↩}