Bank fraud is a federal crime because banks are federally chartered institutions. When a person is accused of misusing the banking system in a way that causes the bank or another party to lose money, that person can be indicted and charged with bank fraud in federal court.
Why Bank Fraud Is a Federal Crime
Because banks operate under federal charters, offenses connected to the banking system fall under federal jurisdiction rather than state law. A person accused of misusing the bank system in a way that causes the bank, or someone else, to lose money through that system can be indicted on bank fraud charges.
Watch Greg McCollum explain this in detail
What Counts as Bank Fraud
Bank fraud is a broad term. It generally applies whenever a person has, in some way, committed a type of fraud in the money system that affects or involves the use of federally chartered banks. This can take a variety of forms depending on how the banking system was used and who was harmed financially as a result.
Related Terms and Overlapping Charges
Bank fraud consists of other things as well. In many cases, conduct described as bank fraud may also be described using other terms, such as mortgage fraud. These different terms can end up meaning largely the same underlying conduct, just described in different ways depending on how the case is charged.
How Federal Fraud Cases Are Handled
Most fraud cases in federal court are handled in a similar manner. They tend to follow the same loss schedule under the federal sentencing guidelines and involve the same general elements of proof, regardless of whether the case is labeled as bank fraud, mortgage fraud, or another type of fraud affecting the banking system.
Frequently Asked Questions
Is bank fraud a state or federal charge? Bank fraud is a federal charge. Because banks are federally chartered, offenses involving misuse of the banking system are prosecuted in federal court rather than under state law.
Does bank fraud always involve the bank losing money? Bank fraud can involve the bank losing money, or it can involve another party losing money through the banking system. Either scenario may result in bank fraud charges.
Is mortgage fraud the same as bank fraud? Mortgage fraud and bank fraud are separate terms that can, in many cases, describe the same type of underlying conduct involving the banking system.
How are bank fraud cases sentenced in federal court? Bank fraud cases generally follow the same loss schedule used for other federal fraud cases under the sentencing guidelines, and they involve similar elements of proof.
Can a person be charged with bank fraud even if they did not directly take money from a bank? Yes. A person can face bank fraud charges if their conduct affects or involves the use of a federally chartered bank, even if the direct loss was experienced by someone other than the bank itself.
Greg McCollum brings nearly 30 years of legal experience to federal bank fraud cases in South Carolina, including his background as a former prosecutor. The Greg McCollum Complete Legal Defense Team works with individuals throughout South Carolina who are facing these serious federal charges.
If you have questions about bank fraud, call the Greg McCollum Complete Legal Defense Team at (843) 626-5480. Consultations are confidential.
