Fraudclosure Bankers Lose Big In Maryland Courts…Woman recently awarded 1.25 million for Mortgage Lending fraud and more to come, they say get back Maryland citizens fight back….
The Fraud Enforcement and Recovery Act of 2009 (FERA)
Prosecuting Mortgage Fraud Cases as Bank Fraud
By amending the definition of “financial institution” to include a “mortgage lending business,” FERA gives the Justice Department the capability to prosecute mortgage fraud cases as bank fraud and to seek enhanced penalties under the mail and wire fraud statutes. As a result, convictions for mortgage fraud can now carry a 30-year maximum prison sentence or a maximum $1 million fine, or both. Even more importantly, mortgage fraud cases will now have a 10-year statute of limitations, as opposed to the 5-year statute of limitations for other frauds, which will give federal prosecutors much more time to develop such cases.
The new definition of “financial institution” does not alter current AML reporting requirements because the Bank Secrecy Act has its own definition of that term. However, as noted above, the government is apparently considering whether to extend AML reporting requirements to non-bank mortgage lenders.
Prosecuting Mortgage Fraud Cases for False Statements
FERA extends the reach of the statute concerning false statements in mortgage applications to include false statements intended to influence any action by a mortgage lending business. Before the enactment of FERA, the false statements statute only applied to false statements intended to influence the action of federal agencies, banks, and credit associations. This statute also carries a 30-year maximum prison sentence or a maximum $1 million fine, or both.
Prosecuting Schemes to Falsely Obtain Economic Recovery Funds as Major Frauds Against the United States
FERA amends the statute concerning major fraud against the United States to add schemes to falsely obtain $1 million or more of TARP funds or other funds constituting federal assistance, such as those available through the economic stimulus plan and the federal government’s purchase of preferred stock in companies. The statute carries a 10-year maximum prison sentence or a maximum $1 million fine, or both.
Prosecuting Schemes in Connection with Commodities
The securities fraud statute is amended by FERA to include frauds involving commodities for future delivery or options on commodities for future delivery. The statute carries a 25-year maximum prison sentence or a maximum $250,000 fine, or both.
Extending the Reach of the Money Laundering Statutes
In response to United States v. Santos, FERA amends the money laundering statutes to provide that it is unlawful money laundering to conceal the gross receipts of the specified crimes, and not just the profits from those crimes. FERA also makes it a crime for individuals to transport or transfer money in and out of the United States to evade taxes.
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