The Impact of Bank Fraud Convictions on a Financial Career

The 2008 financial crisis triggered an overhaul of federal and state financial regulations, increasing oversight and corporate liability for white-collar crimes. Any financial criminal conviction, including bank fraud, will likely end a financial professional’s career in New York. Even if the charges do not result in license forfeiture, most reputable financial employers will not associate with convicted professionals.

If you’ve been charged with bank fraud in New York, you need a dedicated federal financial crimes defense lawyer, Peter Katz.

Overview of Federal Bank Fraud Charges

Bank fraud encompasses a range of activities designed to help the offender unlawfully obtain money, assets, or property held by a registered bank. Examples of bank fraud – typically charged under the federal Bank Fraud Act (18 U.S.C. § 1344) – include:

• Check fraud
• Card fraud
• Wire transfer scams
• Forgery
• Identity theft to obtain account access
• Phishing
• Money laundering

Bank fraud is often charged in combination with various federal financial offenses, including wire fraud, forgery, and identity theft. It also commonly involves elderly account holders and family members accessing a senior’s financial information.

Direct Penalties of Federal Bank Fraud Charges in New York

Although New York criminalizes bank fraud, most major fraud cases are brought under 18 U.S.C. § 1344 in the Manhattan federal district court. Bank fraud is a felony punishable by up to 30 years in prison and $1,000,000 in fines. Additionally, the court may order the offender to pay back the financial institution with interest (restitution).

Restitution is ordered in addition to any fines imposed. It often results in asset forfeiture, which occurs when the AUSA requests federal marshals to seize and sell all property related to the offense. Without the help of a dedicated bank fraud defense lawyer in New York, you may face these penalties regardless of your status as a financial professional.

Sentencing Enhancements and Indirect Penalties for Financial Professionals

Most financial professionals are also fiduciaries. This means they manage another person’s money. Suppose you had a fiduciary duty to guard a client’s financial information but used this information as part of a bank fraud scheme. Federal prosecutors may request that the judge enhance your potential penalties in that case.

Bank fraud convictions are also considered red flags for employability, and most major financial institutions will immediately terminate your employment or refuse to consider your application. You can also be disqualified from obtaining and renewing specific federal and state financial certifications. While an experienced financial recovery lawyer can help you rehabilitate your career, including allowing you to gain additional certifications and education, defeating bank fraud charges is often the only way to avoid these severe indirect penalties.

Contact an Experienced New York Bank Fraud Defense Lawyer for Financial Professionals

Federal white-collar defense attorney Peter Katz understands that there’s more on the line for New York financial professionals than potential fines and fees. Even bank fraud charges, if not quickly contradicted and dismissed, can devastate your career. If you’ve been charged with bank fraud as a financial professional, contact Peter Katz immediately by calling (609) 849-3179 or contact us online.