The criminal offenses commonly referred to as White Collar and Fraud crimes recently added a new offense to their ranks. As of November 1, 2008, Residential Mortgage Fraud, pursuant to New York Penal Law Sections 187.05 (Fifth Degree), 187.10 (Fourth Degree), 187.15 (Third Degree), 187.20 (Second Degree) and 187.25 (First Degree), was added to New York’s Penal Law. In addition to this crime involving Mortgage Fraud, another statute related to this offense and addressed in another entry is Fraudulent Disposition of Mortgaged Property, an “A” misdemeanor pursuant to New York Penal Law section 185.10.
Penal Law 187.00(4) defines Residential Mortgage Fraud as follows: Any person who, knowingly and with intent to defraud, presents, causes to be presented, or prepares with knowledge or belief that it will be used in soliciting an applicant for a residential mortgage loan, or in applying for, the underwriting of, or closing of a residential mortgage loan, or in documents filed with a county clerk of any county in the state arising out of and related to the closing of a residential mortgage loan, any written statement which he or she knows to:
(a) contain materially false information concerning any fact material thereto; or
(b) conceal, for the purpose of misleading, information concerning any fact material thereto.
Residential Mortgage Fraud is a crime punishable as an “A” misdemeanor with a potential sentence of one year jail to a “B” felony punishable by up to twenty five years in state prison.
According to Penal Law Section 187.05, Residential Mortgage Fraud in the 5th Degree, a person is guilt of this crime when he or she commits Residential Mortgage Fraud. The crime of Residential Mortgage Fraud almost tracks the Grand Larceny statute in that the 4th through 1st Degree relate to the proceeds or any other funds received. Similar to Grand Larceny (not exactly), if an individual receives an aggregate in excess of one thousand, three thousand, fifty thousand or one million dollars as a result of this fraud, the crime increases in its severity and potential term of incarceration to violations of Residential Mortgage Fraud in the Fourth (NY PL 187.10), Third (NY PL 187.15), Second (NY PL 187.20) and First Degrees (NY PL 187.25). Crotty Saland PC is criminal defense firm located in New York. Founded by two former Manhattan prosecutors, Crotty Saland PC represents clients throughout the region in both white collar and non-white collar crimes.