NY Penal Law § 187.20: Residential mortgage fraud in the second degree

Residential mortgage fraud is a white collar crime that involves securing a mortgage on residential property by making false statements on the mortgage loan application. There are 5 offenses related to residential mortgage fraud: residential mortgage fraud in the first, second, third, fourth and fifth degrees. The specific residential mortgage fraud crime that you will face depends on the amount of money received as a result of the fraud. Under New York Penal Law § 187.20, you could be charged with residential mortgage fraud in the second degree if you commit residential mortgage fraud and the amount involved is more than $50,000 and not more than $1,000,000.

Michael Ibraham was a bank attorney and settlement agent in numerous real estate closings. During the course of nearly 2 years Ibraham engaged in a course of fraudulent conduct to misrepresent purchaser contributions in real estate transactions. He did so in order to obtain loan proceeds from multiple lenders. Had the lenders known that the purchasers were not contributing the amounts listed on the settlement statements, they would not have disbursed the proceeds. In the absence these disbursements Ibraham would have not have received the loan proceeds in his capacity as bank attorney. Ibraham admitted to the fraud and admitted that his intention was to defraud the mortgage lenders. Ibraham pled guilty to multiple counts of residential mortgage fraud in the second degree. In re Ibraham, 104 A.D.3d 184 (N.Y. App. Div., 2013)

1. Residential mortgage fraud in the fifth degree: New York Penal Law § 187.05
2. Residential mortgage fraud in the fourth degree: New York Penal Law § 187.10
3. Residential mortgage fraud in the third degree: New York Penal Law § 187.15
4. Residential mortgage fraud in the first degree: New York Penal Law § 187.25

In order to prosecute you for residential mortgage fraud in the second degree the prosecutor must prove that the false statement you made was related to a material fact, that you made the false statement "knowingly" and that you had the intent to defraud. If the prosecutor is unable to prove any of these elements, then you have a valid defense to the charge. Furthermore, the prosecutor must prove that the amount of money involved was over $50,000.

Residential mortgage fraud in the second degree is a class C felony. If you are convicted of this offense you could be sent to prison for up to 15 years. You could also receive a probation sentence of up to 5 years and be required to pay a substantial fine.

A person is guilty of residential mortgage fraud in the second degree when he or she commits residential mortgage fraud and thereby receives proceeds or any other funds in the aggregate in excess of fifty thousand dollars.

A conviction for a charge of residential mortgage fraud in the second degree could land you in prison for over a decade and cost you a substantial fine. Therefore, if you are being investigated for residential mortgage fraud, it is critical that you immediately speak with an experienced New York residential mortgage fraud attorney. The staff at the Law Offices of Stephen Bilkis & Associates has years of experience successfully defending clients in New York criminal courts who have been charged with fraud, grand larceny, white collar crimes, and other serious crimes. Contact us at 800.696.9529 to schedule a free, no obligation consultation regarding your case. We serve those accused of larceny in the following locations: the Bronx, Brooklyn, Long Island, Manhattan, Nassau County, Queens, Staten Island, Suffolk County and Westchester County.