One of the common federally prosecuted bank fraud offenses is improper lending. Improper lending is a form of misapplication, which generally involves a bank issuing an unsecured loan to an unqualified borrower who is unable to repay the loan. Another scenario may involve lending money on inadequate or valueless collateral.
In the “improper lending” scenarios it is usually the bank officer who facilitates the bad loan because of some sort of direct financial interest. However, most courts hold that the government doesn’t have to prove that the bank employee personally benefited grom the loan as long as there is enough evidence to show that the employee issued the loan in reckless disregard of the bank’s interest.
If you are investigated for bank fraud crimes in New York, call our New York City based criminal lawyers at (212) 577-6677 to discuss your case.