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COULD I GET A SUSPENDED SENTENCE FOR MORTGAGE FRAUD?

If you are facing a charge of mortgage fraud, you are likely feeling anxious, confused, and worried about what might happen next. You may be wondering what mortgage fraud actually means, what kind of sentence you could receive, and whether there are alternatives to going straight to prison. One option that sometimes arises is a suspended sentence, which can allow you to avoid immediate custody if certain conditions are met. In this article, we will explain what mortgage fraud is, what sentences are typical, how suspended sentences work, and what you can do to improve your chances of a favourable outcome.

What is mortgage fraud?

Mortgage fraud is a criminal offence under English law that involves dishonestly providing false or misleading information in order to obtain a mortgage or to secure better terms on a mortgage than you would otherwise be entitled to. The most common legal basis for prosecuting mortgage fraud is the Fraud Act 2006, particularly Section 2, which covers fraud by false representation. This means that if you knowingly give untrue information on a mortgage application – for example, by exaggerating your income, hiding debts, or misrepresenting your employment status – you could be charged with mortgage fraud.

Mortgage fraud can take many forms. For instance, someone might claim to have a higher salary than they actually earn, invent a fictitious job, or fail to disclose other loans or financial commitments. In more serious cases, mortgage fraud can involve organised schemes where multiple people work together to obtain mortgages on properties using false identities or forged documents. Even if you did not benefit personally, or if you were pressured by someone else to provide false information, you can still be held criminally responsible if you acted dishonestly.

What are the usual sentences for mortgage fraud?

The sentence for mortgage fraud depends on the seriousness of the offence and the circumstances of the individual case. Under the Fraud Act 2006, the maximum sentence for fraud is 10 years’ imprisonment. However, not every case results in a prison sentence. The courts have a wide range of sentencing options, from a community order or a fine for less serious cases, up to lengthy custodial sentences for the most serious offences.

Sentencing guidelines published by the Sentencing Council help judges and magistrates decide on the appropriate sentence. These guidelines take into account factors such as the amount of money involved, the level of planning, whether the offence was part of a group activity, and the impact on victims, including financial institutions. For example, a first-time offender who provided false information on a single mortgage application for a modest sum may receive a community order or a suspended sentence, especially if they have shown genuine remorse and taken steps to make amends. On the other hand, someone involved in a large-scale, organised fraud involving multiple properties and significant financial loss is much more likely to receive an immediate prison sentence.

What is a suspended sentence and how does it work?

A suspended sentence is a type of prison sentence that does not take effect immediately. Instead, the court imposes a custodial sentence but “suspends” it for a specified period, usually between six months and two years. During this time, you are allowed to remain in the community, provided you comply with certain conditions set by the court. These conditions might include doing unpaid work, attending rehabilitation programmes, observing a curfew, or staying away from certain people or places.

If you comply with all the conditions and do not commit any further offences during the suspension period, you will not have to serve the prison sentence. However, if you breach the conditions or commit another offence, the court can activate the suspended sentence, meaning you will have to serve the original prison term in addition to any new sentence for the further offence. In this way, a suspended sentence acts as both a punishment and a strong incentive to stay out of trouble.

Can mortgage fraud result in a suspended sentence?

Yes it is certainly possible for mortgage fraud to result in a suspended sentence, but this depends on the seriousness of the offence and the individual circumstances. Courts will consider whether the offence is serious enough to warrant a prison sentence, but not so serious that immediate custody is the only option. For example, if the fraud involved a relatively small amount of money, was a one-off incident, and you have no previous convictions, the court may decide that a suspended sentence is appropriate. This is more likely if you have shown remorse, made efforts to repay any losses, and have a good record of employment or community involvement.

On the other hand, if the mortgage fraud was part of a larger, organised scheme, involved significant planning, or caused substantial financial loss, the court may decide that only an immediate prison sentence is justified. Similarly, if you have previous convictions for similar offences, or if you have breached trust in a particularly serious way, a suspended sentence may not be available. Each case is different, and the court will look at all the circumstances before making a decision.

What factors do courts consider when deciding on a suspended sentence for mortgage fraud?

When courts are deciding whether to impose a suspended sentence for mortgage fraud, they look at a variety of factors to assess both the seriousness of the offence and your personal circumstances. The main consideration is always how serious the offence is, but the court will also weigh up anything that might make your case more or less severe.

Some of the key factors courts consider include:

  • The amount of money involved in the fraud. Larger sums usually mean the offence is treated more seriously.
  • The level of planning and organisation. Offences that are carefully planned or involve multiple people are seen as more serious.
  • Whether there was a breach of trust. If you held a position of responsibility or used your professional status to commit the fraud, this will count against you.
  • The impact on victims. If the fraud caused significant financial loss to a lender or had wider consequences for others, this will be taken into account. However, if you have made efforts to compensate the victim or put things right, this can help your case.
  • Your personal circumstances. The court will look at whether you have previous convictions, your general character, and any evidence of good conduct or positive contributions to society.

How serious does the offence have to be for a prison sentence for mortgage fraud?

Not all cases of mortgage fraud result in a prison sentence. The court will only impose a custodial sentence if the offence is so serious that neither a fine nor a community order can be justified. This usually happens when the fraud involves a significant amount of money, a high degree of planning, or a breach of trust. For example, if someone submits multiple false mortgage applications over a period of time, involving large sums and causing substantial losses to lenders, the court is likely to consider immediate custody.

However, for less serious cases, the court may decide that a community order or a suspended sentence is sufficient. The key question is whether the offence crosses the custody threshold, meaning that only a prison sentence is appropriate. Even then, the court must consider whether the sentence can be suspended, taking into account all the circumstances.

What can I do to improve my chances of getting a suspended sentence for mortgage fraud?

If you are facing a charge of mortgage fraud, there are several steps you can take to improve your chances of receiving a suspended sentence rather than immediate custody. The most important is to seek legal advice as early as possible. An experienced criminal defence solicitor can help you understand the case against you, gather evidence in your favour, and present your circumstances in the best possible light.

Demonstrating genuine remorse is also important. This means accepting responsibility for your actions, expressing regret, and showing that you understand the impact of your behaviour. If you can make amends, this can be a powerful mitigating factor.

Providing evidence of positive personal circumstances can also help. This might include references from employers, evidence of community involvement, or information about your family responsibilities. If you have underlying issues such as addiction, mental health problems, or financial difficulties, taking steps to address these (for example, by engaging with support services or attending counselling) can show the court that you are committed to changing your behaviour.

Finally, being willing to comply with the requirements of a suspended sentence (such as doing unpaid work, attending rehabilitation programmes, or observing a curfew) can increase the likelihood that the court will consider this option.

Where to get more help

At Stuart Miller Solicitors, we have extensive experience in defending clients accused of mortgage fraud and other financial offences. Our team will work tirelessly to protect your rights, present your case in the best possible light, and help you achieve the most favourable outcome. Contact us today for a free, confidential consultation about your options and next steps.

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