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Simple English definitions for legal terms
financial institution fraud
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A quick definition of financial institution fraud:
Financial Institution Fraud (FIF) is when someone tricks or steals money from a bank or other financial company. It is against the law and can result in a person going to jail for up to 30 years and having to pay a lot of money. FIF can happen in many different ways, like lying on a loan application or making fake checks. It is important to be honest and not steal from banks or other financial companies.
A more thorough explanation:
Financial Institution Fraud (FIF) is a type of fraud or theft that occurs within or against financial institutions. This can include banks, credit unions, and other financial organizations.
According to the federal law, it is a crime to defraud a financial institution. This law covers all financial institutions, not just those insured by the FDIC. Many states also have their own laws against FIF.
Examples of FIF include:
- Commercial loan fraud
- Check fraud
- Counterfeit negotiable instruments
- Mortgage fraud
- Check kiting
- False applications
- Faulty transactions to off-shore accounts
These examples illustrate how FIF can take many different forms. For example, check fraud involves using fake or stolen checks to steal money from a financial institution. Mortgage fraud involves lying on a mortgage application to get a loan that the borrower is not qualified for.
FIF is a serious crime that can result in criminal penalties of up to 30 years in prison and a $1,000,000 fine.
financial institution | Financial institutions - State statutes