Credit can be essential when purchasing a home or an automobile. Since credit applications and the rules can be complex, some people might make the mistake of giving false statements to try and ensure they are approved. Doing so can lead to criminal charges. This is a form of white collar crime and people who are confronted with these charges should know how to protect themselves.
What does state law say about false statements for credit or property?
According to Texas law, if a person makes a false statement for credit to secure a loan, to get property or services via credit, to extend the time at which a loan must be repaid, to get a credit card, or to get a mortgage, it could be a crime. For there to be criminal charges, the person must have made false or misleading written statements intentionally while knowing they were not being truthful about a property appraisal.
The level of charges hinges on the value of the property or the amount of credit. If it is less than $100, it is a Class C misdemeanor. If it is over $100 but less than $750, it is a Class B misdemeanor. When it is over $750 but less than $2,500, it is a Class C misdemeanor.
Larger amounts will rise to felony status. If it is $2,500 and less than $30,000, it is a state jail felony. It is a third-degree felony if it is at least $30,000 but less than $150,000. For $150,000 but less than $300,000, it is a second-degree felony. It is a first-degree felony if it is worth at least $300,000. The penalties for a conviction can be harsh with large fines and an extended prison sentence.
White collar crime allegations warrant a strong defense
People might function under the impression that it is not a major legal violation to be somewhat flexible with the truth when they are trying to get a loan or credit. However, those who find themselves charged with this type of fraud are often surprised at how severe the consequences can be.
Regardless, there are options to lodge an effective defense. Perhaps they made a mistake or were simply trying to help another person by co-signing a loan. There might be ways to reduce the charges or to be acquitted. Having help from those experienced with defending against white collar crimes like fraud can be key to understanding and effectively fighting the charges.