Strategic Federal And State Criminal Defense

California men face federal charges for lying to obtain loans

On Behalf of | Nov 27, 2012 | Federal Crimes |

An Elk Grove man and his brother have been charged with federal offenses for allegedly engaging in student loan fraud. Essentially, fraud is a form of theft that involves the intentional deception of another to obtain something of value. The elements of fraud include misrepresentation of facts that ultimately result in an entity’s financial loss or injury.

In this case, the two men from California are facing federal charges for allegedly obtaining more than $200,000 in student loans by providing falsified personal information. The men are accused of submitting inaccurate student loan applications that allegedly misrepresented the names of those applying for the loans, the various individuals’ social security numbers, their income and where the individuals planned on attending school.

While only one of the men currently accused of the crime actually submitted the applications to the banks, he apparently shared the funds with the other man who was charged. One of the men was arrested in late October, while the other was already in custody on unrelated charges. The arrests stem from an investigation that was jointly conducted by the Internal Revenue Service and the Federal Bureau of Investigation.

Penalties for fraud can vary dramatically depending on the details of the case. The severity of the punishment often depends on who was allegedly defrauded and how much the person took. Unfortunately for the Elk Grove men, defrauding the federal government is a particularly serious crime and the amount of money involved is significant. People who are charged with crimes like this may benefit from a criminal defense strategy that matches the vigor of federal investigators and prosecutors.

Source: Sacramento Bee, “Elk Grove man, brother charged with student loan fraud,” Cathy Locke, Nov. 16, 2012