What Happens if You Are Charged with Mortgage or Student Loan Fraud

Illinois federal crimes attorney, Illinois criminal attorney, Illinois defense lawyer,There are many times in a person’s life where he or she will need to repay student loans, credit card debts, and/or a mortgage. Even though some of these events, such as buying a home, can be a very exciting time in a person’s life, there are, unfortunately, several incidents where money is lost, and you are charged with fraud.

What Are Some Popular Complaints of Fraud?

Fraud is defined as unlawful deception for the person committing the act to benefit financially. The person or company committing fraud may appear highly respected and reputable. In 2016, the biggest consumer complaint included consumer debt, such as mortgage lending, abusive debt collection practices, and student loan services.

The Student Loan Crisis

The student loan crisis is becoming a bigger issue than ever before. With over 40 million Americans with at least a combined $1.4 trillion in student loan debt, there is an increase in loan service providers that provide inaccurate information and for-profit institutions that provide degrees of no value. Many for-profit institutions have greatly misrepresented to prospective students, such as giving false information about the true cost of education and expectations on job placement after college graduation.

Consequences of Loan Fraud

Loan fraud is intentionally making a false statement or overvaluing any type of property to influence the action of a financial institution to act upon any commitment.

  • If the person or institution is accused of fraud, and the full value of the property is less than $500, then a Class A misdemeanor will be charged.
  • If the person charged with fraud has had previous financial crimes against him or her, and the full value of the property is no more than $500, then he or she will be guilty of a Class 4 felony.
  • The person will be charged with a Class 3 felony if the property value is between $500 and $10,000.
  • A charge of a Class 2 felony will be placed against the person if the property is between $10,000 and $100,000 in value.
  • If the property is between $100,000 and $500,000 in value, the person will be charged with a Class 1 felony. A Class 1 non-probationable felony will be placed against the person if the property value was at least $500,000 but no more than $1,000,000.
  • A Class X felony will be placed against the person if the value of the property is over $1,000,000.

Contact a Chicago Criminal Defense Attorney

Being charged with fraud is never a fun experience. Losing money is something that no one wants to have to do, especially when trying to help others purchase a home, or take out a loan. At the Law Offices of Hal M. Garfinkel, Chicago Criminal Defense Attorney, you do not have to fight this battle alone. Attorney Garfinkel is highly reputable in Chicago and surrounding areas and is always ready to assist you with your case. To schedule your free initial consultation, call a Cook County criminal defense attorney at 312-270-0999 to get the help you deserve.

Sources:

http://www.ag.state.il.us/pressroom/2017_03/20170306.html

http://www.chicagotribune.com/business/ct-loan-fraud-1116-biz-20141116-story.html

http://www.freddiemac.com/singlefamily/pdf/fraudprevention_practices.pdf

http://www.ilga.gov/legislation/ilcs/fulltext.asp?DocName=072000050K17-10.6

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