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WHAT SHOULD I DO IF I AM ARRESTED OR CHARGED FOR MORTGAGE FRAUD?

Mortgage Fraud | Stuart Miller Solicitors

Mortgage fraud cases in the UK have been on the rise and the legal system is responding in turn. If you find yourself arrested or charged with mortgage fraud, understanding the next steps can be vitally important for your defence. In this article, we will address some of the most common questions people have in this situation, including whether you need a solicitor for mortgage fraud, what possible defences might be available, and whether you are likely to get bail for such charges. Our aim is to provide you with clear, concise information to help you navigate this challenging time.

Do I need a solicitor for mortgage fraud?

Mortgage fraud is a serious offence in English law, and if you are facing allegations or charges, it is highly advisable to consider the services of a criminal defence solicitor. Mortgage fraud encompasses a wide range of activities, from falsifying income statements to misrepresenting property values. Given the intricate nature of financial transactions and legal requirements, having a solicitor can be crucial for several reasons.

  • Firstly, a criminal defence solicitor can help you understand the specific charges against you and the potential consequences. Mortgage fraud can lead to severe penalties, including imprisonment, fines, and a criminal record. A solicitor can explain the intricacies of these potential outcomes and help you comprehend the gravity of the situation.
  • Secondly, a solicitor can thoroughly analyse the evidence against you. Mortgage fraud cases often involve substantial documentary evidence, including bank statements, loan applications, and communication records. A skilled solicitor can scrutinise this evidence, identify any weaknesses in the prosecution’s case, and potentially find grounds for your defence.
  • Thirdly, the legal procedures and court processes can be overwhelming for someone without a legal background. A solicitor can guide you through each step, from initial police interviews to court appearances, ensuring that you comply with all legal requirements and avoid unintentional mistakes that could jeopardise your case.
  • Fourthly, a criminal defence solicitor can also negotiate on your behalf. In some cases, it may be possible to reach a plea agreement or reduced charges, which can significantly mitigate the consequences you face. Having an experienced negotiator in your corner can make a substantial difference in the outcome of your case.

What are possible defences for mortgage fraud?

A common defence is the lack of intent to deceive. Mortgage fraud typically involves deliberate misrepresentation or omission of information to secure a mortgage. If it can be demonstrated that any incorrect information provided was due to an innocent mistake or misunderstanding, rather than a deliberate attempt to deceive, this could form a valid defence.

Another possible defence is duress. If you can show that you were compelled to commit the fraud due to threats, undue pressure, or blackmail from another party, this may excuse your actions. Evidence of duress could include communications threatening you or your loved ones if you did not comply.

Additionally, you might have a defence based on the actions of a third party. For example, if a mortgage broker or financial advisor intentionally misrepresented your financial situation without your knowledge, you could argue that you were unaware of the fraudulent act.

Technological errors might also provide a defence. In some cases, errors in automated systems or software used in the application process could inadvertently lead to misinformation being submitted. If you can trace the incorrect data to such errors, it could help your case.

Finally, demonstrating that you acted with due diligence can be an effective defence. If you can prove that you took all reasonable steps to provide accurate information and comply with the lending institution’s requirements, and any errors were beyond your control, this could mitigate the charges against you.

Will I get bail for mortgage fraud?

Given the severity of the crime, the court will examine specific points before making a bail decision, such as:

  • The seriousness of the offence and whether there is strong evidence against you
  • Your previous criminal record, particularly any history of fraud or other financial crimes
  • The likelihood that you will abscond or fail to turn up for court appearances
  • Ties to the community, such as family connections, employment, and residence stability
  • The possibility that you could interfere with witnesses or tamper with evidence

If you are deemed to pose a significant risk in any of these areas, the court might deny bail and require you to remain in custody until your trial. However, not all mortgage fraud cases result in such stringent measures.

To bolster your chances of being granted bail, you and your criminal defence solicitor can present compelling evidence demonstrating your reliability and low flight risk. This might include character references, proof of stable employment, or documentation of strong family ties.

Will I have to go to court if I’m arrested or charged for mortgage fraud?

In many instances of mortgage fraud, the case is dealt with by the police and then referred to the Crown Prosecution Service (CPS). The CPS will assess the evidence and decide whether there is enough to prosecute. If they determine that there is sufficient evidence, you may be required to attend court.

There are a few possible outcomes in cases of mortgage fraud:

  • No Further Action (NFA): If the CPS finds insufficient evidence, they may decide not to proceed with the case. In this scenario, you will not have to go to court.
  • Out-of-Court Disposal: In certain situations, an alternative resolution may be offered, such as a caution or a fine. Accepting this resolution might mean you can avoid a court appearance, but it can still have serious implications on your record.
  • Court Summons or Charge: If the CPS decides to formally charge you with mortgage fraud, you will likely receive a court summons. This means you are required to attend a court hearing where the case will be presented.

Cases involving larger scales of fraud or organised criminal activity are likely to result in having to appear in court.

Will I go to jail if found guilty of mortgage fraud?

Minor instances of mortgage fraud might result in lighter sentences, such as community service or fines, particularly if the fraudulent activity involved a small amount of money or had minimal impact. On the other hand, large-scale mortgage fraud involving significant sums of money or a series of fraudulent transactions is likely to lead to more severe penalties, including imprisonment.

Several factors will play a role in determining the eventual sentence:

  • Amount of Money: Larger sums are likely to result in harsher sentences.
  • Level of Premeditation: If the fraud was carefully planned over a long period, it might attract a more severe penalty.
  • Impact on Victims: Courts consider the harm suffered by victims, including financial institutions and other affected parties.
  • Previous Criminal Record: A history of similar offences can lead to a more stringent sentence.
  • Plea and Cooperation: Pleading guilty and cooperating with authorities can sometimes result in a reduced sentence.

Will I go to jail if it’s my first offence of mortgage fraud?

First offences do not necessarily mean that you get to avoid jail, but in most cases, the fact that something is your first offence will mean that you are likely to receive a lesser punishment, such as not as much prison time. This is because the court considers first time offending to be mitigating factor and mitigating factors generally reduce the sentence that you are given (or can help you avoid one altogether).

Can I get Legal Aid for mortgage fraud?

Legal Aid in England and Wales is designed to help those who cannot afford legal advice, representation, or access to justice. Eligibility for Legal Aid in cases of mortgage fraud depends on two primary factors: the means test and the merits test.

  • The means test assesses your financial situation, including your income, savings, and assets. To qualify for Legal Aid, you must demonstrate that you do not have sufficient financial resources to pay for legal representation on your own. Here are some key aspects of the means test:
    • Your monthly income must be below a certain threshold.
    • Your savings and capital should not exceed a specified limit.
    • You may be required to provide documentation, such as payslips and bank statements, to support your application.

The merits test evaluates the seriousness of the charges against you and whether having legal representation is in the interests of justice. For mortgage fraud cases, which are typically complex and carry potentially severe penalties, the merits test is likely to be satisfied.

Where to get more help

For most people, facing criminal charges is a daunting and overwhelming experience, especially if you are unfamiliar with the legal system. Understanding your rights and having a strong defence strategy is crucial to achieving the best possible outcome. With the expertise of Stuart Miller Solicitors, you can feel more confident and supported throughout the legal process. Contact us today for a no obligation consultation.

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