Frisco Bank and Mortgage Fraud Lawyer

When you are the focus of a federal bank or mortgage fraud investigation, hiring a Frisco bank and mortgage fraud Attorney should be your top priority. The federal government secures convictions in over 90 percent of its cases.

If you are under investigation, agents are not looking for both sides. They are actively working to build a case against you.

Securing experienced legal representation as early as possible can make all the difference. A single misstep, a poorly worded response, or a delay in getting help can affect your future in serious ways.

Take the first step in your defense by calling Whalen Law Office at (214) 368-2560 for a confidential consultation.

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Why You Need a Former Prosecutor for Bank and Mortgage Fraud Defense

When you are up against the power of the U.S. government, you need more than just a good lawyer. You need a defense team that understands how prosecutors think, plan, and act. At Whalen Law Office, our approach is informed by direct experience inside the prosecutor’s office, giving us a clear advantage when defending clients accused of fraud and other financial crimes.

We have handled complex white-collar cases from both sides of the courtroom. This perspective allows us to anticipate the government’s strategy and build a defense designed to undercut their case at every stage. We take proactive steps during the investigation phase, often before charges are filed, to protect your rights and shape the narrative from the outset.

Our attorneys are equipped to navigate the most intricate aspects of fraud litigation, including financial records, forensic accounting, and witness examinations. We know how to challenge the evidence and the assumptions behind it.

Whether your case stems from a paperwork oversight or involves allegations of a multi-million dollar conspiracy, we are prepared to stand between you and the government. We serve clients in Frisco, Plano, and throughout North Texas, with the focused intent to protect your freedom, your reputation, and your future.

Understanding the Stages of a Federal Bank or Mortgage Fraud Investigation

Federal fraud investigations are slow and deliberate. They are often conducted in secret for extended periods, sometimes months or even years.

If you have just learned that you are under investigation, the government likely has a significant head start. Understanding how these investigations progress is the first step toward protecting yourself.

Target Letters and Surprise Agent Visits in Federal Fraud Cases

Federal investigations often become visible to the target when a letter arrives from the U.S. Attorney’s Office or when federal agents appear at a home or workplace. A target letter is a formal notice that you are under investigation by a federal grand jury.

Unannounced visits from agents with the FBI or IRS Criminal Investigation Division are designed to catch you off guard. Agents may ask questions in hopes of obtaining statements before you have legal representation. Everything you say is recorded and can be used to support the case against you.

The safest response is to remain calm, decline to answer questions, and inform the agents that your attorney will follow up. This is not an admission of guilt. It is a proper and lawful way to assert your rights.

The Role of the Grand Jury in Federal Fraud Cases

Felony charges in federal fraud cases are typically issued through a grand jury indictment. A grand jury is a panel of citizens that hears evidence presented exclusively by the prosecution. There is no judge present, and defense attorneys are not allowed in the room. The process is confidential and controlled by the U.S. Attorney.

According to the Federal Rules of Criminal Procedure, grand juries can issue subpoenas for both documents and testimony. This phase is not a trial. It is a one-sided proceeding used to determine whether there is probable cause to bring formal charges.

Responding to Federal Subpoenas and Search Warrants in Fraud Investigations

A federal subpoena is a serious legal matter that demands immediate attention and a strategic response. A subpoena may compel you to produce documents or appear to testify, and while compliance is legally required, the way you respond can significantly influence your case.

Do not provide any documents or information before speaking with an attorney. Responding without legal guidance could unintentionally waive important privileges or supply the government with evidence that may be used against you. An experienced attorney can review the subpoena, negotiate its scope, and help you respond in a way that meets legal obligations while safeguarding your rights.

If federal agents carry out a search warrant, your attorney can oversee the process to make sure the agents stay within the limits of the warrant and that your constitutional protections are fully respected during the search.

Bank and Mortgage Fraud: State vs. Federal Jurisdiction Explained

A bank or mortgage fraud charge can lead to prosecution in either state or federal court. In Texas, this could mean facing charges in a Collin County courtroom in McKinney or in a federal courthouse in Plano or Sherman.

The decision about where your case is filed depends on specific legal factors. A skilled bank fraud defense attorney in Frisco must be prepared to handle both state and federal proceedings.

When Bank and Mortgage Fraud Becomes a Federal Case

A fraud case is usually prosecuted in federal court when it involves a financial institution that is federally insured, such as a national bank or credit union. If the alleged fraud involves the use of electronic communications like email, wire transfers, or even the U.S. Postal Service, federal jurisdiction may apply under the wire fraud or mail fraud statutes.

Federal agencies including the FBI, IRS Criminal Investigation, and the U.S. Postal Inspection Service have significant investigative resources. These agencies are typically involved in complex or large-scale financial crime investigations, making federal prosecution more likely when the alleged scheme involves multiple transactions or large amounts of money.

Two primary statutes are often used in federal bank fraud cases:

• 18 U.S. Code § 1344: Prohibits knowingly executing a scheme to defraud a financial institution.
• 18 U.S. Code § 1014: Criminalizes making false statements to influence a bank’s decision on a loan or credit application.

Importantly, federal prosecutors do not need to show that the bank lost money or relied on the false statement. They only need to prove that the false statement was made with intent.

Texas State Charges for Bank and Mortgage Fraud

Not all fraud cases rise to the level of federal prosecution. If the institution involved is not federally insured or the alleged conduct is more localized or less severe, the case may be handled by the District Attorney’s Office in Collin County, Dallas County, or another Texas jurisdiction.

Under Texas Penal Code § 32.32, it is a criminal offense to obtain property or credit from a financial institution by making false or misleading statements. The severity of the charge is determined by the value of the property or funds obtained.

While Texas state charges are still serious, they generally carry less severe penalties compared to federal charges. Federal sentencing guidelines place significant weight on the intended loss amount, which can result in longer prison terms and higher financial penalties in federal cases.

Choosing the Right Legal Defense for Bank or Mortgage Fraud

Whether your case is prosecuted in state or federal court, the stakes are high. A conviction can result in prison time, financial penalties, and long-term damage to your reputation and career. It is essential to have a defense attorney who understands the nuances of both systems and can effectively challenge the evidence, protect your rights, and pursue the best possible outcome.

Common Mortgage Fraud Schemes Prosecuted in North Texas

The rapid growth of the real estate market in Dallas-Fort Worth suburbs such as Frisco, Prosper, and McKinney has created an environment ripe for mortgage fraud. Federal investigators monitor these markets closely, and prosecutors are aggressive in pursuing suspected fraud.

Loan Application Misrepresentation in Mortgage Fraud Cases

One of the most frequently prosecuted offenses is loan application fraud. This occurs when a borrower submits false or misleading information to qualify for a mortgage. Common examples include:

• Overstating income
• Falsifying employment details
• Concealing significant debts
• Using fake sources for down payments

While mortgage brokers or loan officers may sometimes encourage these misstatements, the legal responsibility falls on the individual who signs the loan documents. Signing an application that contains false information can expose a borrower to serious federal charges.

Fraud for Profit Schemes in Real Estate Transactions

Fraud for profit involves multiple participants, such as borrowers, real estate agents, appraisers, and loan officers, working together to defraud lenders. These sophisticated schemes are frequently investigated and prosecuted in the Northern District of Texas.

• Straw Buyer Fraud: A straw buyer with good credit is recruited to apply for a mortgage on behalf of someone else. The recruiter submits false information to the lender and keeps the loan proceeds. The loan is typically not repaid, resulting in financial loss to the lender.
• Appraisal Fraud: This occurs when an appraiser, often collaborating with a seller or loan officer, intentionally inflates a property’s value. The exaggerated appraisal misleads the lender into approving a loan greater than the property’s actual worth.
• Property Flipping Fraud: A property is bought and quickly resold at an inflated price, often supported by a fraudulent appraisal. The lender is misled into approving an overvalued loan and is left with insufficient collateral if the loan defaults.

These types of fraud undermine the integrity of real estate markets and can result in serious criminal penalties for those involved.

Federal Penalties for Mortgage Fraud Are Extremely Severe

A conviction for bank or mortgage fraud is a federal felony with lasting consequences. Federal prosecutors use the U.S. Sentencing Guidelines to determine penalties, with financial loss being a primary factor in sentencing.

Federal Prison Time

A conviction under bank or mortgage fraud statutes may carry up to 30 years in prison, with no parole and a requirement to serve at least 85 percent of the sentence.

Fines and Restitution

Defendants can be fined up to $1,000,000. In addition, they are typically ordered to pay full restitution to the defrauded lender. This debt cannot be eliminated through bankruptcy.

Asset Forfeiture

The government can seize assets it believes are connected to the alleged fraud. This may include real estate, bank accounts, vehicles, and other valuable property.

The Lasting Consequences of a Felony Mortgage Fraud Conviction

The impact of a federal felony conviction extends well beyond prison time. Individuals lose many civil rights and face significant obstacles in rebuilding their lives.

• Loss of voting rights and firearm ownership
• Revocation or suspension of professional licenses
• Difficulty finding employment or housing
• Long-term damage to credit and financial stability

The social stigma associated with a fraud conviction can affect your reputation, your family, and your future for years to come.

How a Strategic Defense Can Help Fight Mortgage Fraud Charges

Taking a passive, “wait and see” approach often leads to conviction. A strong defense starts right away. The goal is to push back against the government’s version of events and make them prove every part of the case beyond a reasonable doubt.

Focusing on Intent

In any fraud case, intent is everything. Prosecutors have to show that you knew your actions were fraudulent and that you intended to deceive.

But not every mistake is a crime. Misunderstanding complex forms or relying on advice from a mortgage broker may be completely innocent.

A good faith defense argues that you lacked fraudulent intent, and it is often one of the most effective strategies.

Challenging the Government’s Evidence

The government’s case is usually built on documents and witness statements. Your defense needs to look closely at the story they are telling.

Your defense should involve uncovering favorable evidence, challenging the government’s loss calculations, and exposing credibility issues with cooperating witnesses who may have received leniency in return for testimony.

Using Pretrial Motions to Your Advantage

Before your case ever reaches a jury, your attorney can file motions that challenge how the government built it. This might include suppressing illegally obtained evidence or dismissing charges due to legal flaws. Success at this stage can weaken the prosecution or even lead to a full dismissal.

Under Investigation for Mortgage or Bank Fraud? We’re Here to Support You

If you are being investigated for mortgage or bank fraud, you may be facing serious legal and personal challenges. Your freedom, your career, and your family life could all be affected. While the government works to build its case, waiting to act may limit your options.

You do not have to face this situation on your own. A skilled legal team can help you understand what to expect, protect your rights, and begin preparing a strong defense right away.

Before speaking with investigators, contact Whalen Law Office at (214) 368-2560  for a confidential and cost-free consultation. We are here to help you move forward with confidence and clarity.

Schedule A Consultation

Whalen Law Office – Frisco Location

9300 John Hickman Pkwy #501
Frisco, TX 75035
P: (214) 368-2560