Los Angeles Real Estate Fraud Lawyers
False Statement to HUD – 18 U.S.C. § 1010
Overview and Elements
Every year, the federal Department of Housing and Urban Development (“HUD”) pays out millions in subsidies to various individuals through its many programs. Readers are likely most familiar with “FHA loans,” a program by which HUD subsidizes home buyers by insuring their home loans from private financial institutions. The security of this federal insurance in turn allows the financial institutions to charge lower interest and grant more favorable loan terms to borrowers.
Section 1010 provides federal criminal penalties for any individual who:
(1) for the purpose of obtaining any loan or advance of credit from any person, partnership, association, or corporation;
(2) with the intent that –
(a) such loan or advance of credit shall be offered to or accepted by the Department of Housing and Urban Development for insurance; or
(b) for the purpose of obtaining any extension or renewal of any loan, advance of credit, or mortgage insured by such Department; or
(c) the acceptance, release, or substitution of any security on such a loan, advance of credit; or
(d) for the purpose of influencing in any way the action of such Department;
(3) (a) makes, passes, utters, or publishes any statement, knowing the same to be false; or
(b) alters, forges, or counterfeits any instrument, paper, or document; or
(c) utters, publishes, or passes as true any instrument, paper, or document, knowing it to have been altered, forged, or counterfeited; or
(d) willfully overvalues any security, asset, or income
At first glance, the preceding seems to cover many different types of conduct. However, every scenario covered by §1010 addresses the same wrongdoing; namely, the making of false statements to try to influence the decision-making of HUD. Most often, this will involve false statements on loan applications or similar documents which are made in an attempt to secure FHA loans to which the borrower would otherwise not be entitled.
A violation of 18 U.S.C. § 1010 is punishable by up to two years of incarceration in federal prison, a fine, or both.
Besides asserting that the challenged statement was, in fact, true, most defenses to §1010 will focus on the defendant’s state of mind. Your attorney will argue that, while the statement or statements at issue were false, you did not make them in an attempt to secure loans or insurance from HUD or otherwise affect their decision-making. The government must prove beyond a reasonable doubt that you had a deceptive intent when you made the false statements. If you were simply careless or mistaken, you cannot be convicted under §1010.
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All federal crimes are highly technical and require a fact-specific and case-by-case evaluation by an experienced attorney familiar with the federal courts and federal criminal statutes. If you, or someone you know, is charged with a violation of 18 U.S.C. § 1010, call us today at (877) 781-1570 for a free telephonic consultation with one of our federal criminal defense attorneys.
Related Information: Loan Fraud | Bank Fraud