Washington criminal law makes it a crime for you to engage in or commit mortgage fraud. The offense is a severe felony (as opposed to a misdemeanor) that is punishable by up to a decade in state prison. Please contact a skilled criminal defense attorney now if you or a loved one is facing any type of criminal fraud charge.

How Does Washington Law Define Mortgage Fraud?

RCW 19.144.080 is the Washington statute that sets forth the crime of mortgage fraud. Per this law, it is unlawful for any person in connection with the mortgage lending process to directly or indirectly:

  • Employ any scheme or device to defraud or materially mislead any borrower during the lending process,
  • Defraud or materially mislead any lender, defraud or materially mislead any person, or engage in any unfair or deceptive practice toward any person related to the mortgage lending process, or
  • Obtain property by fraud or material misrepresentation during the mortgage lending process.

The statute in question also makes it a crime for any person in connection with the mortgage lending process to directly or indirectly:

  • Knowingly make any misstatement, misrepresentation, or omission related to the mortgage lending process knowing that it may be relied on by a mortgage lender, borrower, or any other party related to the mortgage lending process,
  • Use or facilitate the use of any misstatement, misrepresentation, or omission, knowing the same to contain a misstatement, misrepresentation, or omission, related to the mortgage lending process with the intention that it be relied on by a mortgage lender, borrower, or any other party related to the mortgage lending process,
  • File or cause to be filed with the county recorder or the official registrar of deeds of any county of Washington any document such person knows to contain a material misstatement, misrepresentation, or omission, or
  • Knowingly alter, destroy, shred, mutilate, or conceal a record, document, or other object, or attempt to do so, with the intent to impair the investigation and prosecution of this crime.

What are the Penalties?

Mortgage fraud is charged as a Class B felony under Washington law. A conviction is punishable by:

  • Custody in state prison for up to 10 years, and/or
  • A maximum fine of $20,000.

Can a Defendant Raise a Legal Defense?

Yes. You have the right to challenge a mortgage fraud charge with a legal defense. A common defense is for your criminal defense attorney to show that the police somehow violated your constitutional rights. For example, maybe the authorities:

  • Arrested you without probable cause,
  • Coerced a confession, or
  • Conducted an unlawful search or seizure.

If any of these took place, your defense lawyer could move to have your charges reduced or even dismissed.

Entrapment is another common defense in these cases, and it is often raised when an accused is charged following an undercover police sting. The defense says that you only committed a crime because a police officer lured you into doing so. It’s an acceptable defense provided that you show that you only committed mortgage fraud because of the entrapment.

Contact Black & Askerov for Help

While a defendant can raise a legal defense to challenge a mortgage fraud charge, it will take a skilled criminal defense attorney to raise the best defense. The experienced criminal defense attorneys at Black & Askerov have over 30 years of combined experience defending clients on a wide variety of fraud charges. Our Seattle criminal defense lawyers also have the skill and commitment that makes all the difference in these cases. Contact us now to get the legal help you deserve!

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