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Federal Bank and Loan Fraud Defense

Bank fraud under 18 U.S.C. § 1344 carries up to 30 years and a $1,000,000 fine per count, and the government has ten years to charge it. Most cases start inside the bank, with a fraud department review or a Suspicious Activity Report, long before an agent calls. The defense starts with the loan file and the account records the government already has.

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  • Aaron M. Cohen, more than 30 years of federal criminal defense. Bank and loan fraud investigations and prosecutions nationwide.
  • Bank fraud and mail fraud conspiracy, S.D. Fla.: 21-month sentence reduced to 14 months on a Rule 35 motion.

Prior results do not guarantee a similar outcome. Every case is different and depends on its own facts.

Bank wire transfer records and a federal agent's badge on a desk, federal bank fraud investigation

Bank Fraud in Federal Court in 2026

Bank fraud is the second most charged white-collar statute in federal court. TRAC data for 2026 shows 18 U.S.C. § 1344 as the lead charge for about 32 defendants a month, second only to wire fraud in four of the five months reported. Bank fraud made up 13.2% of white-collar filings. In the Southern District of Florida, fraud is 15.1% of sentenced cases, about twice the national share, according to U.S. Sentencing Commission data for fiscal year 2025.

This page is for business owners, borrowers, account holders, loan officers, brokers, and bookkeepers who have heard from a bank, an agent, or a prosecutor about a loan, a line of credit, or account activity. If your case centers on a home loan, see mortgage fraud. If it centers on emails and transfers with no bank as the target, see wire fraud.

How Bank Fraud Cases Start

Most bank fraud cases begin inside the bank, not with an agent.

  • The bank's fraud department. A returned check, a pattern of deposits, or a loan default triggers an internal review. The bank may freeze or close accounts without explaining why.
  • Suspicious Activity Reports. Banks must report suspected fraud to FinCEN. You are never told a SAR was filed. Agents and prosecutors search those reports to open cases.
  • Federal agents. The FBI, the U.S. Secret Service, the FDIC Office of Inspector General, and the Postal Inspection Service when the mail is used. SBA-OIG joins when an SBA-backed loan is involved.
  • Subpoenas and target letters. Grand jury subpoenas go to the bank for your account and loan records, often without notice to you. A target letter or a call from agents usually comes after those records are in hand.
  • Cooperators. A loan officer, broker, or business partner who was approached first.

What the Government Must Prove Under § 1344

18 U.S.C. § 1344 punishes anyone who knowingly executes, or attempts to execute, a scheme:

  1. to defraud a financial institution, or
  2. to obtain money or property owned by, or in the custody or control of, a financial institution, by means of false or fraudulent pretenses, representations, or promises.

The Supreme Court has read both prongs broadly. In Loughrin v. United States (2014), the Court held that the second prong does not require proof that the defendant intended to defraud the bank. The Court also held that the false statement must be the means by which the defendant obtains bank property, which limits cases where the bank is only incidental to the scheme. In Shaw v. United States (2016), the Court held that a scheme to take a customer's deposits is a scheme to defraud the bank under the first prong, and that the government need not prove the bank lost money or that the defendant intended it to.

Two things remain the government's burden in every case: intent to defraud, and a material misrepresentation. The maximum is 30 years and a $1,000,000 fine per count.

The Charges That Travel With Bank Fraud

  • False statement on a loan or credit application, 18 U.S.C. § 1014: up to 30 years and $1,000,000. It covers statements to FDIC-insured banks, credit unions, and mortgage lending businesses, made to influence their action. Materiality is not an element, but the statement must be false. In Thompson v. United States (2025), the Court held that a misleading but true statement does not violate § 1014.
  • Check kiting. Moving checks between banks to create balances that do not exist. Because Williams v. United States (1982) held a bad check is not a false statement under § 1014, kiting is charged as bank fraud.
  • Business loans and lines of credit. False financial statements, inflated receivables or inventory on a borrowing base certificate, and undisclosed debts or liens on renewals. These are document cases, and the bank's own credit file is the government's main exhibit.
  • SBA-backed loans. 7(a) loans, PPP loans, and other SBA-guaranteed loans are made by banks and other lenders, so they are often charged under § 1344 and § 1014. See PPP and EIDL fraud defense and government program fraud.
  • Conspiracy, 18 U.S.C. § 1349: the same maximum as bank fraud itself.
  • Aggravated identity theft, 18 U.S.C. § 1028A: a mandatory 2 years, consecutive to any other sentence. In Dubin v. United States (2023), the Court narrowed it to cases where the use of another person's identity is at the crux of what makes the conduct criminal. A loan taken out in another person's name still qualifies. A name that merely appears in a file may not.

Ten Years to Charge

The general federal limit is five years. 18 U.S.C. § 3293 extends it to 10 years for § 1344, § 1014, and mail or wire fraud that affects a financial institution, along with conspiracies to commit them. A loan from 2017 is still chargeable in 2026.

How Bank Fraud Sentencing Works

The statutory maximum rarely sets the sentence. The fraud guideline, USSG § 2B1.1, does. Because bank fraud carries a maximum of 20 years or more, the base offense level is 7. Then the loss table adds levels, and loss is usually the largest single number in the calculation. The loss table thresholds rise for inflation on November 1, 2026, which can move a case down two levels. See the new federal fraud loss table.

A bank-specific enhancement applies under § 2B1.1(b)(17)(A): if the defendant derived more than $1,000,000 in gross receipts from one or more financial institutions, the offense level goes up 2, to no less than level 24. Gross receipts are not the same as loss, and the government has to tie the money to the defendant.

Restitution to the bank is mandatory under the Mandatory Victims Restitution Act, 18 U.S.C. § 3663A, and is measured by the actual losses the offense caused. Forfeiture of proceeds is a separate number. Loan payments made and collateral the bank recovered should be credited against loss and restitution.

How Bank Fraud Cases Are Defended

  • Intent. Bank fraud is a specific intent crime. Errors by a bookkeeper, figures prepared by an accountant, and projections that did not pan out are not fraud.
  • Falsity and materiality. Was the statement false, or true but incomplete? Did it matter to the credit decision? The loan officer's notes and the bank's own underwriting often answer that.
  • The Loughrin limit. Under the second prong, the misrepresentation must be the means of getting bank property. Schemes aimed at a third party, where the bank only processed a payment, can fall outside § 1344.
  • Loss and gross receipts. Repayments, collateral, and the bank's recovery all reduce the number that drives the sentence.
  • Timing. The strongest work happens before indictment, while the prosecutor is still deciding what to charge.

What to Do Now

  1. Do not talk to agents or the bank's investigators without counsel. A false statement to a federal agent is its own crime under 18 U.S.C. § 1001.
  2. Preserve everything. Loan files, bank statements, emails with the lender, accounting records. Deleting or altering records creates obstruction exposure.
  3. Do not move money out of frozen or flagged accounts or contact the bank about the dispute on your own.
  4. Call counsel. AMC Defense Law represents clients in federal bank and loan fraud matters in Florida and nationwide. Aaron M. Cohen has more than 30 years of federal criminal defense experience.

Related Results

Southern District of Florida (Miami) · 2015
United States v. S.B
Bank Fraud and Attempt and Conspiracy to Commit Mail Fraud
Result
Initial 21-month sentence reduced to 14 months with concurrent sentences on all counts via Rule 35 motion
View all case results

Frequently Asked Questions

Bank fraud under 18 U.S.C. § 1344 carries up to 30 years in prison and a fine of up to $1,000,000 per count. A false statement on a loan or credit application under 18 U.S.C. § 1014 carries the same maximum. Those numbers are ceilings, not predictions. The actual sentence is driven by the fraud guideline, USSG § 2B1.1, where the loss amount does most of the work. Restitution to the bank is mandatory, forfeiture of proceeds is usually sought, and an aggravated identity theft count adds two years that must run consecutively.

The government must prove you knowingly executed, or attempted to execute, a scheme either to defraud a financial institution or to obtain money or property owned by or in the custody of a financial institution by false or fraudulent pretenses. The bank must be federally insured or otherwise covered by the statute's definition of financial institution. The misrepresentation must be material. The scheme does not have to succeed, and under Shaw v. United States (2016) the bank does not have to lose money.

Ten years. Under 18 U.S.C. § 3293, the government has 10 years to indict bank fraud under § 1344, false statements to a lender under § 1014, and mail or wire fraud that affects a financial institution, along with conspiracies to commit them. The ordinary federal limit is five years. A loan that closed in 2017 can still be charged in 2026, which is why old loan files still produce new cases.

It can be. Check kiting means moving checks between accounts at different banks to create balances that do not exist, using the float before the checks clear. In Williams v. United States (1982), the Supreme Court held that a bad check is not a factual assertion, so kiting is not a false statement under § 1014. Prosecutors charge kiting under the bank fraud statute instead. The defense question is usually intent: whether the account holder meant to cover the checks or was running a scheme.

Yes. The statute punishes executing or attempting a scheme, so the government does not need to show the bank suffered a loss. In Shaw v. United States (2016), the Supreme Court held that a scheme to take a customer's deposits is a scheme to defraud the bank, even if the bank was made whole. Loss still matters at sentencing. A loan that was repaid, or a bank that was never exposed, can mean a much lower guideline range.

It can be. Section 1014 makes it a crime to knowingly make a false statement to influence a covered lender, including FDIC-insured banks, credit unions, and mortgage lending businesses. The government does not have to prove the statement was material. It does have to prove the statement was false. In Thompson v. United States (2025), the Supreme Court held that § 1014 does not reach statements that are misleading but literally true. Honest mistakes and figures you believed were accurate are not crimes.

Not without a lawyer. A bank's fraud investigator works for the bank, and anything you tell the investigator can end up in a Suspicious Activity Report or a referral to the FBI or Secret Service. A false statement to a federal agent is a separate crime under 18 U.S.C. § 1001. Decline the interview politely, take contact information, preserve every record, and call counsel. If talking helps you, your lawyer can arrange it on terms that protect you.

Yes. We represent clients in federal bank and loan fraud investigations and prosecutions nationwide, including in the Southern and Middle Districts of Florida, New York, New Jersey, North Carolina, Texas, and California. Bank fraud is charged where the bank, the loan, or the account activity sits, so a Florida borrower can be indicted in another state. We appear pro hac vice where required and work with local counsel when a court requires it. The first step is the same everywhere: get the loan and account records in front of counsel before anyone talks to the government.

Justice Watch Analysis

Federal Sentencing · 11 min read

The New Federal Fraud Loss Table Takes Effect November 1, 2026: What Changed and What Did Not

Sentenced after November 1 and your loss sits near a threshold? The fraud table moves for the first time in eleven years. Two offense levels are on the table.

White Collar & Fraud · 8 min read

Federal Aggravated Identity Theft Charges: What You Need to Know About 18 U.S.C. § 1028A

Aggravated identity theft under 18 U.S.C. § 1028A carries a mandatory two-year consecutive prison sentence, but the real danger lies in stacking multiple counts. Understanding how federal prosecutors use this statute as leverage is critical before making any plea decision.

Federal Sentencing Defense · 11 min read

Eleventh Circuit Limits Loss Amount Attribution in Federal Fraud Sentencing: What United States v. Lopez Means for Florida Defendants

Your presentence report says $3.2 million. Your own conduct was $4,000. The Eleventh Circuit just vacated a Florida sentence built on exactly that gap.

Federal Sentencing · 9 min read

PSR Objections in Federal Sentencing: The Eleventh Circuit Says the Government Gets One Chance to Prove Its Facts

Waiting on a PSR in a federal fraud case? The Eleventh Circuit just vacated a 15-year enhancement the government never proved. Learn how to object to yours.

Federal Fraud Enforcement · 9 min read

DOJ's New Fraud Directive Tells Prosecutors to Seize Assets Before Indictment: What Florida Targets Need to Know

DOJ now tells fraud prosecutors to seize bank and crypto assets before indictment and seek detention. What Florida targets should do now.

White Collar / COVID Fraud · 11 min read

PPP Loan Fraud Charges in 2026: Why a $20,000 Loan Still Gets Indicted in Florida

Took a PPP loan under $25,000 and assumed the file was closed? Florida just saw a $20,000 loan indicted. Here is the real exposure and what still works.

Read all Justice Watch articles

Related Practice Areas

Federal Criminal Defense

Wire Fraud

Wire fraud under 18 U.S.C. § 1343 is one of the most frequently charged federal crimes, and one of the most flexible tools in a federal prosecutor's toolkit. Any scheme to defraud that uses a wire communication crosses into federal jurisdiction. The penalty is up to 20 years per count.

Federal Criminal Defense

PPP / EIDL Fraud

PPP and EIDL prosecutions are still moving, and the statute of limitations is ten years. SBA OIG subpoenas, grand jury target letters, and indictments are landing five years after the loans closed. If you received a PPP or EIDL loan and now have a federal investigator at your door, the case is already built.

Federal Criminal Defense

Mortgage & Bank Fraud

Federal bank fraud under 18 U.S.C. § 1344 carries 30 years per count, among the highest maximum penalties in white-collar federal law. Mortgage fraud schemes in South Florida frequently involve multiple properties, multiple counts, and loss calculations that drive guidelines ranges far beyond what prosecutors publicly state in charging documents.

Federal Criminal Defense

Identity Theft

Federal aggravated identity theft under 18 U.S.C. § 1028A carries a mandatory two-year consecutive sentence that stacks on top of the underlying offense, with no judicial discretion to run it concurrently. When paired with wire fraud or healthcare fraud, a single case can produce 15 to 20 years in mandatory federal time.

Federal Criminal Defense

Money Laundering

Federal money laundering charges under 18 U.S.C. § 1956 carry up to 20 years per count. When federal prosecutors target financial transactions in South Florida, you need defense counsel who knows exactly how they build these cases, and how to dismantle them.

Federal Criminal Defense

Government Program Fraud

Government program fraud cases are built from program data before anyone is interviewed. By the time an Inspector General agent calls, the agency has usually matched claims, redemptions, or payments against other records for months. The defense has to start where the government started: the program rules, the paperwork, and what you actually knew.

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This page is attorney advertising and general information, not legal advice. Contacting AMC Defense Law does not create an attorney-client relationship. Prior results do not guarantee a similar outcome. Aaron M. Cohen, Esq., is responsible for the content of this page. AMC Defense Law, 1200 N. Federal Highway, Suite 300, Boca Raton, Florida 33432.