What is Bank Fraud?
Whoever knowingly executes, or attempts to execute, a scheme or artifice. This is covered under 18 U.S. Code Statute 1344. It is where a person defrauds a financial institution, or obtains any 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.
What are the fines for Bank Fraud?
A person shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both.
A Fraud Case:
In a case about Bank Fraud against A Bank (we will not disclose the name for privacy concerns regarding a potential settlement), the Bank claimed it did not have to reimburse the customer more than $140,000 because they reported the loss too late.
The Bank Client accused the defendant of negligence and breach of contract for honoring three allegedly forged checks totaling $140,227 that were written against their money market savings account by an unknown person.
The Bank Clients claimed the three checks were written against their account between May and August when they were living in Venezuela.
The Bank Client did not receive statements from the bank and only learned of the fraud when they visited Miami in October.
Although the couple completed all the proper forms to report the loss, the bank refused to return the money.
The suit says the bank failed to follow “reasonable commercial banking procedures,” such as comparing the signatures on the checks to those it had on file.
The Bank Client previously were victims of a $3,000 fraud in March 2003, but Bank of America promptly notified them of the fraud and refunded their money.
Shockingly, the bank’s concern was short-lived, the complaint reads that the bank took the cold-hearted and legally untenable position that it was under no legal obligation to make the Bank Clients whole.
In a motion to dismiss, Bank of America says the 60-day deadline in its account contract with the plaintiffs bars their claim.
The bank urges the court to enforce the deposit agreement and dismiss the suit.
Need protection against bank fraud?
We offer a free consultation and immediate action to try to get your money back. Call 786-454-2411.