Accused of allegedly making a false statement in a loan application?

False Statement in a Loan Application: Understanding the Federal and State Felony Charges, Potential Defenses, and Your Best Defense Strategy.

If you face charges, there is hope. We can fight to help you avoid jail and a conviction!

Making a false statement in a loan application is a serious offense with potentially life-altering consequences. If you’re facing accusations of loan fraud, understanding the charge and your legal options is critical. At LEWIS & DICKSTEIN, P.L.L.C., our dedicated team of fraud defense attorneys is here to protect your rights, safeguard your freedom, and provide the legal firepower you need.

What is a False Statement in a Loan Application?

A false statement in a loan application occurs when an individual knowingly provides inaccurate or misleading information to secure a loan. This can include overstating income, misrepresenting employment status, undervaluing debts, or falsifying assets. These misrepresentations can influence a lender’s decision to approve a loan, potentially leading to criminal penalties.

Under federal law, making false statements in loan applications is prosecuted by the U.S. Attorney’s Office under strict federal statutes in the United States District Court in Michigan:

18 U.S.C. § 1014 prohibits knowingly making false statements to influence the actions of financial institutions, including those insured by the FDIC. Penalties can be severe, with fines of up to $1,000,000 and imprisonment for up to 30 years.

18 U.S.C. § 1001 makes it illegal to knowingly falsify, conceal, or cover up a material fact within federal jurisdiction. Penalties include up to five (5) years in prison and significant fines.

Along with violating federal law as discussed above, making false statements on a loan application is also a criminal offense in Michigan.

Fraud in Securing a Loan or Credit Application: Under the Michigan Penal Code, knowingly making false statements to obtain a loan or credit is a felony, carrying potential prison time and substantial fines. At LEWIS & DICKSTEIN, P.L.L.C., we understand the unique nuances of Michigan’s legal system and use this knowledge to protect and defend our clients.

Collateral Consequences of a Conviction

Beyond immediate legal penalties, a conviction can have significant and lasting collateral consequences on your personal and professional life:

Employment Opportunities: A criminal record, particularly for fraud, can impact job prospects, especially in industries requiring financial integrity.

Professional Licenses: Fraud convictions may result in the revocation or denial of licenses, particularly in finance, healthcare, and law.

Future Loan Applications: Lenders may be reluctant to approve loans for individuals with fraud convictions, which can affect access to credit and financing.

Common Defenses Against False Statement Charges

Several defenses can apply in cases involving false statements in loan applications. We work with you to tailor the right defense to your unique circumstances:

Lack of Intent: To convict, the prosecution must prove you knowingly provided false information. Lack of intent is a powerful defense if inaccuracies are accidental.

Mistake or Error: Honest errors, such as miscalculations or clerical mistakes, can be argued as unintentional rather than deliberate misrepresentations.

Duress or Coercion: If you were pressured or coerced into making false statements, we can build a defense around your lack of control in the situation.

Insufficient Evidence: Prosecutors must prove that the false statement was both intentional and material. We meticulously review evidence to challenge these claims.

best defense against false statement loan application charges

The Role of a Defense Attorney in False Statement Cases

Facing fraud charges can be overwhelming, but you don’t have to navigate this alone. A skilled defense attorney is your best ally in protecting your rights and minimizing the impact of the case on your life. At LEWIS & DICKSTEIN, P.L.L.C., we:

Evaluate Your Case: We assess the evidence and identify weaknesses in the prosecution’s case to build a strong defense.

Develop a Strategy: Our approach is tailored to each client, using a unique team-based strategy to ensure every detail is covered.

Negotiate with Prosecutors: In some cases, charges can be reduced or even dropped. Our attorneys are skilled negotiators who strive for the best possible outcome.

Represent You in Court: With extensive courtroom experience, our attorneys advocate vigorously on behalf of our clients, protecting their rights and freedom.

Frequently Asked Questions

1. What constitutes a false statement in a loan application?
A false statement in a loan application involves knowingly providing inaccurate or misleading information to a lender. This can include overstating income, misrepresenting employment, or falsifying assets, all of which are considered fraudulent because they influence a lender’s decision.

2. Can a simple mistake lead to criminal charges?
While unintentional errors on a loan application are generally not criminal, there must be evidence you knowingly provided false information. If inaccuracies are discovered, it’s crucial to address and correct them promptly to avoid potential issues.

3. How can I protect myself during the loan application process?
To safeguard yourself:

Be Transparent and Accurate: Ensure all details are truthful.
Maintain Documentation: Keep records like pay stubs, tax returns, and bank statements.
Seek Professional Advice: If uncertain, consult a financial or legal professional.
Review Your Application: Double-check for errors before submitting.

Following these steps helps protect you from potential legal challenges.

4. What should I do if I am under investigation for making a false statement?
If you’re under investigation, take the following steps:

Seek Legal Counsel: Engage a criminal defense attorney specializing in fraud cases.
Avoid Discussing the Case: Refrain from talking to investigators or others without your attorney present.
Gather Relevant Documentation: Collect financial records that may support your case.
Follow Your Attorney’s Advice: Stay compliant with all legal guidance to protect your rights.

Why Choose LEWIS & DICKSTEIN, P.L.L.C. for Your Defense

At LEWIS & DICKSTEIN, P.L.L.C., we use a unique team-based approach, combining our experience and insight to offer the best possible defense for our clients. With a track record of success and a reputation as one of Michigan’s top criminal defense firms, we know what it takes to handle complex fraud cases and are relentless in protecting our clients’ rights.

If you’re facing false statement charges, LEWIS & DICKSTEIN, P.L.L.C. is your strongest ally. We offer more than just representation—we provide peace of mind and an aggressive, dedicated approach. Our team’s unparalleled experience and commitment to excellence mean we are prepared to fight tirelessly for you. Contact us today for a free consultation to discuss your case and take the first step toward securing your freedom and future.

Call us today at (248) 263-6800 for a free consultation or complete an online Request for Assistance Form. We will contact you promptly and find a way to help you.