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Financial Institution and Bank Reports Fraud

The regulation of the country's banking system and institutions are a major topic of federal legislation. Congress has a strong interest in ensuring that banks and their employees behave in a legal manner. As such, any person accused of committing fraud as an employee or an officer of a bank may face severe penalties.

One way a person could commit this type of fraud is by making false statements in a bank's accounting books with the intent of deceiving the bank ownership or any federal agency. Courts treat these activities as felonies that carry severe potential prison terms and heavy fines.

A Michigan financial institution and bank reports fraud lawyer could help you if you are facing these allegations in United States District Courts. Specifically, a qualified fraud attorney could help you understand the complex federal laws that prohibit this behavior, identify realistic goals for the outcome of your case, and work with you to develop strategies designed to pursue these goals in court.

Federal Laws Controlling the Entry of Financial Institution and Bank Reports

All banks chartered by the United States are required to follow United States reporting requirements. This means that all internal entries concerning profits and losses, debts, assets, and customer ledgers must be accurate to the best of the reporting party's knowledge. Any intentional attempt to deceive either the leadership of the financial institution or a federal agency is a crime.

According to 18 U.S.C. §1005, whoever makes any false entry into any ledger or book of a financial agency or company with the intent to deceive any other party has committed an act of fraud. In addition, a person would also have committed fraud if they make any deposit or withdrawal, issue funds, or otherwise act as an agent of the bank without authority. Punishments for these crimes are severe, with sentences rising as high as 30 years in prison and fines of up to $1,000,000.

Laws Applicable to Credit Unions

Credit unions offer many banking customers a more intimate banking option. In fact, these unions are oftentimes owned by the members themselves. Still, if these credit unions are FDIC-insured, they must adhere to federal laws. As such, 18 U.S.C. §1006 prohibits all the same fraudulent activity as the law concerning banks. As such, employees and officers of credit unions have the same duty to keep accurate books and can be severely punished if they intentionally mislead customers, other banks, and federal agencies. The penalties here are identical to those for bank report fraud.

The Importance of Intent

It is important to remember that a prosecutor utilizing either of the aforementioned statutes to pursue a fraud case involving financial institutions and bank reports must prove that the defendant intended to commit a fraud. A mere bookkeeping error does not equate to a violation of the law.

Instead, the prosecutor must prove that a person made an intentional misstatement or entry and that this misstatement was made with the intent of deceiving another party. A seasoned Michigan financial institution and bank reports fraud lawyer should have years of experience evaluating the actions of their clients and fighting back against allegations of fraud.

Let a Financial Institution and Bank Reports Attorney Help

If you are facing allegations of financial institution or bank reports fraud, it is reasonable to be scared and confused. You may believe that your honest error has spiraled out of control, resulting in felony charges in a United States District Court. Since a conviction under any bank fraud statute could lead to a multi-year prison sentence, it could be critical that you protect yourself at every turn.

An experienced Michigan financial institution and bank reports fraud lawyer may be able to help you do just that. An attorney understands federal bank fraud laws and how they apply to the employees and officers of banks and credit unions. They also understand that prosecutors in these cases need to prove that a person intentionally misled their fellow employees, customers, or federal agencies to secure a conviction.

Practiced attorneys have years of experience in evaluating the strength of prosecutors' cases and creating reasonable doubt in the minds of juries. Let one such legal professional fight for you—call today to schedule an initial consultation and see what could be done in your case.


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