How disguising payments counts as fraud

On Behalf of | May 3, 2021 | Fraud

Bank fraud in New York and elsewhere in the United States comes in many forms, all of which come with potentially serious consequences that include long prison sentences. One form of bank fraud is disguising payments as something they are not.

Bank fraud defined

Bank and mortgage fraud are commonly prosecuted offenses. Bank fraud is a criminal offense that involves deliberately engaging in a scheme or deception that utilizes a bank or financial institution in the process. Bank fraud includes a scheme designed to defraud a bank or financial institution itself or another business or individual. Disguising the source of funds that are deposited into a bank can also be a form of this type of fraud. Bank fraud, oftentimes, is referred to as being a white-collar crime.

Example of bank fraud perpetrated by disguising transactions

An example of bank fraud involving deception and disguised transactions is found in a case involving the cannabis industry. The sale of marijuana may be legal in individual states, but it remains a federal crime. As a result, banks do not process transactions from businesses in the cannabis industry.

Recently, a cannabis business attempted to take advantage of the banking system. In order to accomplish this, the cannabis business disguised credit card transactions as being from another enterprise not a part of the marijuana industry. Ultimately, an investigation revealed the illegal scheme being perpetrated in this case.

Because the consequences of a conviction for bank fraud can be severe, an individual facing this type of prosecution is wise to be proactive and obtain the professional assistance of an experienced New York criminal defense attorney. Typically, criminal defense lawyers schedule initial consultations with prospective clients at no cost and no obligation.

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