In 2008, the world was rocked by the collapse of many of our banks across the nation and in the world, followed by the blowup of the real estate industry and eventually, our economy. What were once thought to be sound and stable investments bottomed out as large banking companies went under. First Lehman Brothers went bankrupt, and then others began to feel the stress, like Merrill Lynch, AIG, Freddie Mac, Fannie Mae, HBOS, Royal Bank of Scotland, Bradford & Bingley, Fortis, and Hypo and Alliance & Leicester. World governments were sent scrambling to prop up the banking industry and spent trillions of dollars to keep the banks afloat and to shore up the tumbling world economy.
Before the dust settled, the investigations and finger pointing began. There was definitely enough blame to go around from the top to the bottom. In order to comply with the government mandates that required banks to make loans more accessible to lower-income individuals, banks were prompted to relax lending guidelines. Loans were made to individuals who did not have the ability to pay them back. These loans were also known as “stated income” loans. These loans were made to individuals who were only required to “state” their incomes; the income did not have to be proven by supporting documentation. Of course, the system of making loans purely based on stated income created an environment ripe for fraud. Banks that were stuck with these bad notes, offloaded them to other bankers and investors, beginning a cycle of poor lending practices.
After the collapse, lawmakers worked hard to find solutions and make sure this did not happen again. As a deterrent, courts became inclined to make examples of anyone making false statements on loan documents by handing out heavy sentences.
Recently, an Ohio man received a sentence of 25 years in a federal prison for fraudulently obtaining $11 million in loans that helped contribute to the collapse of the St. Paul Croatian Federal Credit Union in Eastlake between the years 2003 and 2010, considered to be one of the biggest failures of a credit union is American history. He was charged with conspiracy, bank fraud, bribery, and money laundering.
Bank fraud is a very serious offense, and as we see, can lead to harsh sentencing. If charged with any crime, do you know your rights? It is important that anyone accused of any type of crime, get quality representation on their side, prior to any interrogation process, starting with their arrest. You will need experienced and knowledgeable legal counsel working for you as soon as possible. If you are facing criminal charges in Dayton, please contact the team of criminal defense attorneys at The VanNoy Law Firm online or give us a call at 937-952-5043.
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