Federal Bank Fraud – 18 U.S.C. § 1344

Introduction to Federal Bank Fraud Laws

What Is Bank Fraud Under Federal Law?

Bank fraud is a federal crime that involves using false statements or deceptive actions to obtain money, property, or securities from a financial institution. Unlike state-level fraud, federal bank fraud cases fall under 18 U.S.C. § 1344, which gives the government broad authority to prosecute fraudulent conduct affecting federally insured banks and other financial institutions.

The Scope of 18 U.S.C. § 1344

This statute makes it illegal to execute or attempt a scheme to defraud a financial institution. It applies to banks that are federally chartered or insured by the FDIC. Because nearly all major banks and many smaller ones fall into this category, federal jurisdiction is nearly always triggered.

Why Bank Fraud Is Prosecuted Federally?

The federal government prosecutes bank fraud because it threatens the integrity of the financial system. Even a relatively small fraudulent act can have widespread implications if left unchecked. As a result, the penalties are severe, and prosecutions are aggressive.

Understanding 18 U.S.C. § 1344

Elements the Government Must Prove

To convict under 18 U.S.C. § 1344, the prosecution must establish:

1. There was a scheme by defendant to knowingly carry out, or try to carry out, a plan to fraud a bank out of something valuable;
2. There was an intended to defraud the financial institution.
3. The bank was insured by FDIC.

Definitions of “Scheme to Defraud” and “Financial Institution”

A “scheme to defraud” means a deliberate plan to deceive a financial institution and take something of value from it. “Financial institution” covers FDIC-insured banks, credit unions, and other federally insured entities.

Types of Conduct Covered Under the Statute

The statute applies to actions such as forging signatures, submitting false loan documents, or orchestrating schemes like check kiting. Even digital forms of deception, including online account takeovers, fall within its scope.

Common Bank Fraud Schemes

Forging Checks or Loan Applications

Submitting a fraudulent check or falsifying information on a loan application are some of the most common forms of bank fraud.

Identity Theft and Account Takeover

Using stolen personal information to access accounts or open new lines of credit also falls under federal bank fraud.

Mortgage and Wire Transfer Fraud

Fraudulent property valuations and misuse of wired funds often lead to federal charges.

Insider Bank Employee Fraud

Employees misusing their access to embezzle funds or manipulate records may be charged with serious violations.

Penalties for Violating 18 U.S.C. § 1344

Maximum Federal Prison Sentences

A conviction may result in up to 30 years in federal prison, making this one of the harshest financial crime penalties.

Financial Penalties and Restitution

Defendants may face fines of up to $1,000,000 per violation and be required to pay restitution to the financial institution.

Impact on Future Employment and Licenses

Even after serving a sentence, individuals may face lasting consequences such as loss of professional licenses, damaged credit, and reduced employment opportunities.

Legal Defenses Against Federal Bank Fraud Charges

Lack of Intent to Defraud

If the prosecution cannot prove intent, the charges may not hold. Honest mistakes or misunderstandings do not meet the threshold for fraud.

Mistaken Identity or False Accusation

Fraud cases often involve multiple parties. Demonstrating that the defendant was not the person responsible can be an effective defense.

Violation of Constitutional Rights

Evidence gathered through unlawful searches or seizures may be suppressed, weakening the government’s case.

Challenging the Sufficiency of Evidence

Attorneys may argue that the bank did not rely on the false information, or that no financial loss occurred.

Role of a Federal Bank Fraud Defense Attorney

Early Case Evaluation and Pre-Indictment Representation

An experienced Federal Bank Fraud Defense Attorney can intervene before charges are filed, possibly preventing an indictment.

Negotiating With Federal Prosecutors

Skilled attorneys can negotiate reduced charges, favorable plea agreements, or alternatives to prison.

Building a Defense With Expert Financial Witnesses

Financial experts may help disprove government claims about intent, reliance, or loss.

Navigating Plea Agreements or Trial Strategy

A defense lawyer will assess whether trial or negotiation offers the best chance of minimizing penalties.

How DCD LAW Defends Bank Fraud Charges

Experience With Complex Financial Crime Cases

At DCD LAW, our criminal defense team is deeply familiar with cases involving fraud, embezzlement, and complex financial crimes.

Reviewing Government Discovery and Evidence

We thoroughly examine documents, statements, and digital records to challenge the prosecution’s narrative.

Filing Strategic Pretrial Motions to Suppress or Dismiss

Our attorneys look for weaknesses in the government’s case and file motions to exclude unlawfully obtained evidence or dismiss unsupported charges.

Personalized Legal Representation Focused on Results

Every case is unique, and we develop defense strategies tailored to the facts, ensuring our clients receive relentless advocacy.