What charges can result from loan application fraud? 4 Answers as of June 17, 2011

My business partner is in some trouble and I'm wondering what he should do about it. He had very bad credit, so created a new credit file using a different social security number (apparently not used by anyone else since his file was empty with no accounts, no credit score, etc.) birth date and address. He says that he applied for a bank loan and the loan officer said that he somehow knew it wasn't his SS# even though nothing showed on the credit report. Is there really any way he could know that if nothing showed up on the credit report? Also, he gave them a fake W2 when he applied. And now I'm worried that if he gets in trouble for this it could affect our jointly owned company. So my questions are: 1.) Could a bank find that out even though nothing was on the credit report or were they just razzing him because they suspected him? 2.) How much trouble can someone get into for creating a false new blank credit file like that (not identity theft) and using it to apply for a loan using a fake W2? Thank you.

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Lowenstein Law Office
Lowenstein Law Office | Anthony Lowenstein
Very many white collar, credit fraud charges are possible in California and at the federal level. For more information, please see my website.
Answer Applies to: California
Replied: 6/17/2011
The Law Offices of Gabriel Dorman
The Law Offices of Gabriel Dorman | Gabriel Dorman
Lots of trouble. The answer to your question is actually in your question. He committed fraud. He created a false identity in an effort to obtain a loan from the bank. This is fraud. There are many different types of fraud but, at the end of the day, it's fraud. Also, I am sure he signed certain documents "under penalty of perjury" and, if so, he committed perjury. Big trouble. Maybe your friend needs to speak with an experience criminal defense attorney. That would be my advice. Good luck.
Answer Applies to: California
Replied: 6/16/2011
Nelson & Lawless
Nelson & Lawless | Terry Nelson
Various federal bank fraud charges, violations of the credit reporting laws, theft, conversion, etc. But all of those would imply that he got money falsely. If he didnt get a loan or money, they are less likely to file charges for the attempt. Whatever happens to a partner happens to the company. If you end up needing legal help in this, feel free to contact me.
Answer Applies to: California
Replied: 6/15/2011
The Law Office of Harry E. Hudson, Jr.
The Law Office of Harry E. Hudson, Jr. | Harry E. Hudson, Jr.
A lot of trouble. Loans and their applications are frequently sent over telephone wire and through the mails. They also usually involve federal institutions. If the money is of an amount the US Attorney thinks is sufficient and its a rather easy or significantly flashy case (Madoff at 100k would probably not been of interest to the feds), federal prosecution is possible. If he's received funds over certain amounts, prison can be mandatory. If he's using the company and you know about it, you might be implicated as an aider and abetter. You should be very careful. Sit down with YOUR [NOT the company] CPA and attorney. You might also be certain that you put all of your future money discussion and business operations in some form of writing. [ Dear partner, on AXY we discussed ABC as to DEF and ...]
Answer Applies to: California
Replied: 6/15/2011
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