Federal Bank Fraud Defense Lawyer Arizona | 18 U.S.C. Â§ 1344

Federal Bank Fraud Defense

Aggressive defense against federal bank fraud charges under 18 U.S.C. § 1344 in the District
of Arizona. Over 30 years of federal court experience.

Myles A. Schneider

30+ Years Federal Defense

Facing Federal Bank Fraud Charges? We Can Help.

You got a letter from the U.S. Attorney’s Office or an FBI agent showed up asking about a loan application. Your stomach dropped. You’re replaying every conversation you had with the bank and wondering how this became a federal case. Maybe it was a PPP loan you applied for during the pandemic. Maybe it was a business loan where the numbers weren’t perfect. Either way the federal government is now treating you like a criminal and the penalties they’re threatening are staggering.

I’ve defended hundreds of bank fraud cases in the District of Arizona. I know exactly how these investigations unfold and I know where the weaknesses are in the government’s case. The prosecutors want you to panic. They want you to cooperate without a lawyer. Don’t. Call me first and let’s talk about what’s actually happening and what we can do about it.

The Bank Fraud Statute: 18 U.S.C. § 1344

18 U.S.C. § 1344 is commonly referred to as the bank fraud statute. It is used by the Department of Justice to prosecute "any scheme to defraud" a federal bank. The scope of the phrase "any scheme" is broad; it has, for example, been used to prosecute check forging, check kiting, and embezzlement, among other things.

Making misrepresentations to a bank — such as providing tax returns that contain certain errors as part of a loan application, or incorrectly stating information in a loan application — can support a bank fraud conviction, which carries a potential statutory penalty of up to 30 years in prison. Because of its broad scope and harsh potential penalties the bank fraud statute is often a weapon of choice for prosecutors.

The bank fraud statute provides that: Whoever knowingly executes, or attempts to execute, a scheme or artifice — (1) to defraud a financial institution; or (2) to obtain any of the money, funds, credits, assets, securities, or other property owned by, or under the custody or control of, a financial institution, by means of false or fraudulent pretenses, representations, or promises; shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both.

False Entries & Misapplication (18 U.S.C. §§ 1005, 1006): Prohibits insiders from making false entries in bank records to cover up embezzlement or unauthorized transactions.

Bank Bribery (18 U.S.C. § 215): Punishes corruptly offering, soliciting, or accepting anything of value to influence or reward an official in connection with bank business.

Wire and Mail Fraud (18 U.S.C. §§ 1343, 1341): Frequently charged alongside bank fraud if the scheme involved interstate wires or mail.

Maximum Penalties: Up to 30 years in federal prison and/or fines up to $1,000,000 per offense.

Restitution: Defendants are almost universally required to pay full restitution to the victimized financial institution to compensate for the actual loss.

The actual sentence is driven by the U.S. Sentencing Guidelines, which use the loss amount as the primary factor. A loss exceeding $150,000 adds 10 levels to the base offense level, while a loss exceeding $1,500,000 adds 16 levels. Additional enhancements apply for sophisticated means, number of victims, and abuse of a position of trust.

Because the loss amount dictates the severity of the sentence, aggressively contesting the government’s loss calculation is one of the most critical defense strategies in any bank fraud case.

Defense Strategies for Federal Bank Fraud Charges

Defending against federal bank fraud charges requires a proactive and highly strategic approach. An experienced federal criminal defense attorney will meticulously analyze the government's evidence to identify weaknesses and build a robust defense.

The cornerstone of a bank fraud defense is often challenging the element of intent. The government must prove that the defendant acted knowingly and with the specific intent to defraud. If the inaccuracies on a loan application were the result of a genuine misunderstanding, a good-faith mistake, or reliance on the erroneous advice of an accountant or financial advisor, the requisite criminal intent may be lacking.

Not every false statement constitutes federal fraud. The defense can argue that the alleged misrepresentations were not material — meaning they would not have influenced the bank's decision to approve the loan. This requires a deep dive into the specific underwriting criteria used by the lending institution.

The most effective defense strategy often occurs before charges are formally filed. If a target learns of an investigation early, defense counsel can engage with federal prosecutors to present exculpatory evidence, clarify misunderstandings, and potentially persuade the government to decline prosecution or pursue civil remedies instead of criminal charges.

Asset Forfeiture: The government will aggressively pursue the forfeiture of any assets traceable to the fraudulent proceeds. This can include the seizure of bank accounts, real estate, vehicles and investments.

Mandatory Restitution: Courts are required to order defendants to pay full restitution to the victims, ensuring that the financial burden follows the defendant long after their release from prison.

Loss of Professional Licenses: A felony fraud conviction will almost certainly result in the revocation of professional licenses, including those held by lawyers, doctors, CPAs and real estate brokers.

Immigration Consequences: For non-citizens, a conviction for an aggravated felony or a crime involving moral turpitude (which includes bank fraud) can lead to mandatory deportation and permanent exclusion from the United States.

Supervised Release: Following a prison term, defendants face years of supervised release, during which their financial activities, employment and travel are strictly monitored by federal probation officers.

What qualifies as bank fraud under federal law?

Any knowing scheme or artifice to defraud a federally insured financial institution, or to obtain money or property from one through false pretenses. This includes check forging, check kiting, embezzlement, loan application fraud, and misrepresentation of financial information.

What is the maximum sentence for federal bank fraud?

Can I be charged with bank fraud for a mistake on a loan application?

Will I have to pay restitution if convicted?

Available 24/7 — Nights & Weekends

Myles A. Schneider

30+ Years Federal Defense Experience

U.S. Army Veteran (82nd Airborne)

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