Understanding Bank Fraud And Its Legal Implications

Last updated on June 2, 2025

Bank fraud refers to financial fraud perpetrated against institutions, whether those are banks, credit unions or other lenders. This type of fraud can take many different forms but encompasses any scheme intended to misappropriate funds or defraud the institution of its property and financial assets. It can have significant ramifications, including fines of up to $1 million and 30 years in prison.

Those who are facing bank fraud allegations should contact us at Leonard Trial Lawyers for experienced legal guidance. Our award-winning firm takes cases in Chicago and nationally, and our attorneys are known for exhaustive trial preparation, creative legal solutions and aggressive defense of our clients’ rights. When you need a lawyer to help you focus on your future and your defense options, call us for a consultation.

Key Components Of Bank Fraud Under Federal Law

Under U.S. statute §1344, anyone convicted of defrauding a financial institution of its “moneys, funds, credits, assets, securities or other property” could face either a prison sentence of 30 years or a fine of $1,000,000. Under statute §1014, it is illegal to intentionally make false statements or overvalue property. This could be a form of fraud when trying to obtain a loan under false pretenses. Violations could lead to a 30-year sentence, although it depends on the specifics of the case – such as how much money was involved.

Types Of Bank Fraud

Some common types of bank fraud in Illinois include:

• Embezzlement: The misappropriation of financial assets.
• Mail fraud: Utilizing the postal system for financial fraud.
• Loan fraud: Intentionally misrepresenting financial details to obtain a loan under fraudulent pretenses; this also includes mortgage fraud.
• Check fraud: Writing fraudulent or fake checks; this is similar to wire fraud, which is carried out electronically.
• Money laundering: Hiding the source of funds to make them appear legitimate.

No matter what specific allegations you are facing, experienced federal criminal defense attorneys can help you respond to the court, file documents, gather evidence, prepare your defense and much more. Our team is known for working tirelessly to prepare for your case, coming up with creative legal solutions and giving you the aggressive and determined defense you deserve if your case goes to trial.

Call For A Consultation

If you are facing serious federal charges for bank fraud and related financial crimes, call us at 312-815-6572 or use the online form to set up your initial consultation today.