Mortgage and real estate fraud are serious white-collar offenses in Florida involving allegations of deception in property transactions, loan applications, refinancing, or real estate investments. These cases often arise during periods of high real estate activity and are aggressively prosecuted because they involve financial institutions, lenders, and large sums of money.
Unlike simple theft or fraud cases, mortgage and real estate fraud prosecutions are document-intensive and technically complex. Investigations typically involve loan files, appraisals, closing documents, bank records, emails, text messages, and testimony from lenders, brokers, appraisers, and buyers or sellers. Many defendants are charged even when they believed the transaction was lawful or relied on professionals involved in the deal.
If you are under investigation or facing charges for mortgage or real estate fraud in Florida, the consequences can be severe. Convictions may result in prison time, massive restitution, loss of professional licenses, and permanent damage to your financial and professional reputation.
Gainesville Mortgage and Real Estate Fraud Defense Lawyer
If you have been accused of mortgage or real estate fraud in Florida, you need to act quickly to protect your future. These cases often begin quietly as audits or lender reviews before escalating into criminal prosecutions.
Dean Galigani of the Galigani Law Firm has years of experience defending clients in Gainesville and throughout Florida against complex financial and fraud-related charges. He understands how real estate transactions work, how prosecutors attempt to infer intent from paperwork, and how to challenge allegations that business or lending disputes amount to criminal fraud.
Contact the Galigani Law Firm today at (352) 375-0812 for a free consultation if you are facing mortgage or real estate fraud charges in Gainesville, Ocala, Lake City, or surrounding areas.
Information Center
- Definition of Mortgage and Real Estate Fraud Under Florida Law
- Common Allegations Leading to Mortgage and Real Estate Fraud Charges
- Penalties for Mortgage and Real Estate Fraud in Florida
- Defenses to Mortgage and Real Estate Fraud Charges
- Role of a Florida Mortgage Fraud Defense Attorney
- Key Elements the Jury Considers
- Frequently Asked Questions
- Additional Resources
Definition of Mortgage and Real Estate Fraud Under Florida Law
Mortgage and real estate fraud in Florida is prosecuted under several statutes, including Florida Statute § 817.545, § 817.034 (scheme to defraud), and related fraud provisions. In general, these laws prohibit knowingly making false statements, misrepresentations, or omissions during a real estate transaction or loan process to obtain money, property, or favorable lending terms.
Allegations may involve:
- False statements on loan or mortgage applications
- Inflated or manipulated appraisals
- Misrepresentation of income, employment, or occupancy
- Use of straw buyers or false identities
- Concealment of secondary financing
- Misuse of loan proceeds
Prosecutors must prove that the accused acted knowingly and with intent to defraud, not merely that a transaction failed or contained inaccuracies.
Common Allegations Leading to Mortgage and Real Estate Fraud Charges
Mortgage and real estate fraud charges often arise from allegations involving:
- Loan application fraud
- Property flipping schemes
- False owner-occupancy claims
- Appraisal fraud
- Title or closing document manipulation
- Real estate investment ventures accused of deception
- Broker, agent, or lender misconduct
Many cases involve multiple defendants and overlapping civil, administrative, and criminal proceedings.
Penalties for Mortgage and Real Estate Fraud in Florida
Penalties depend on the value of the alleged fraud, the number of transactions involved, and whether the conduct is charged as a standalone offense or as part of a broader scheme.
Third-Degree Felony: Lower-value or isolated transactions may be charged as third-degree felonies.
Potential penalties include:
- Up to 5 years in Florida State Prison
- Up to $5,000 in fines
- Restitution to lenders or victims
- Permanent felony criminal record
Second-Degree Felony: Larger transactions or repeated conduct may elevate the charge.
Potential penalties include:
- Up to 15 years in Florida State Prison
- Up to $10,000 in fines
- Significant restitution obligations
First-Degree Felony: High-value schemes or widespread fraud may result in first-degree felony charges.
Potential penalties include:
- Up to 30 years in Florida State Prison
- Up to $10,000 in fines
Additional Consequences
Beyond incarceration and fines, convictions may result in:
- Asset forfeiture
- Loss of professional or real estate licenses
- Civil lawsuits from lenders or investors
- Federal prosecution exposure
- Immigration consequences for non-citizens
- Severe reputational and financial harm
Defenses to Mortgage and Real Estate Fraud Charges
- Lack of intent to defraud: Mortgage fraud charges require proof of specific intent to deceive a lender or party. Errors, misunderstandings, or overly optimistic representations do not automatically amount to criminal fraud. Defense counsel focuses on demonstrating good-faith participation in the transaction rather than deceptive intent.
- Reliance on professionals: Many defendants relied on brokers, lenders, appraisers, attorneys, or closing agents to prepare documents. If inaccurate information originated from professionals or third parties, criminal liability may not attach. Establishing reasonable reliance can significantly weaken the prosecution’s case.
- No material misrepresentation: To constitute fraud, a misstatement must be material to the lending decision. Minor inaccuracies or omissions that did not influence loan approval may not satisfy this element. Without materiality, the charge may fail.
- Legitimate business or real estate dispute: Failed investments or loan defaults are often civil matters, not criminal acts. Prosecutors sometimes attempt to criminalize ordinary business risks or downturns. Defense counsel emphasizes the difference between fraud and financial loss.
- Insufficient or circumstantial evidence: Mortgage fraud cases often rely on inferences drawn from documents rather than direct proof of intent. Gaps in records, inconsistent witness testimony, or alternative explanations can create reasonable doubt. The burden of proof remains on the state.
- Unlawful searches, subpoenas, or seizures: Financial and real estate records must be obtained lawfully. Overbroad subpoenas or unconstitutional searches may result in suppression of key evidence. Without admissible documents, the prosecution’s case may collapse.
Role of a Florida Mortgage Fraud Defense Attorney
- Analyzing loan files and transaction documents: A defense attorney conducts a detailed review of mortgage applications, closing documents, appraisals, and correspondence. This analysis often reveals lawful explanations for alleged inconsistencies. Proper context is essential in complex real estate cases.
- Challenging intent and misrepresentation claims: Prosecutors frequently infer intent from paperwork alone. Defense counsel focuses on the defendant’s understanding and purpose at the time of the transaction. Without proof of deceptive intent, criminal charges cannot stand.
- Limiting aggregation of transactions: The state may attempt to combine multiple deals to inflate charge severity. An attorney challenges whether aggregation is legally appropriate and factually supported. Reducing the alleged amount can significantly reduce sentencing exposure.
- Managing parallel civil and criminal exposure: Mortgage fraud cases often involve foreclosure actions, civil lawsuits, and administrative licensing proceedings. Defense counsel coordinates strategy across all forums. Protecting the client in one proceeding helps prevent harm in another.
- Negotiating reduced charges or alternative resolutions: When evidentiary weaknesses exist, an attorney may seek dismissal, charge reduction, or non-prison outcomes. Many cases resolve favorably once intent and reliance issues are highlighted. Early negotiation is often critical.
- Trial representation in complex financial cases: If the case proceeds to trial, defense counsel challenges expert testimony, lender assumptions, and speculative conclusions. Jurors must understand technical real estate concepts. Clear presentation is key to establishing reasonable doubt.
Key Elements the Jury Considers
To convict, the prosecution must prove beyond a reasonable doubt that:
- A false statement or misrepresentation was made
- The statement was material to the transaction
- The defendant acted knowingly and intentionally
- Money or property was obtained or risked
- The evidence was lawfully obtained
Failure to prove any element requires acquittal.
Frequently Asked Questions
Is mortgage fraud always a felony?
Most mortgage fraud charges are felonies due to the value involved.
Can I be charged if the loan was repaid?
Yes. Repayment does not automatically eliminate criminal liability.
Are real estate professionals held to higher standards?
Yes. Brokers, lenders, and appraisers may face enhanced scrutiny.
Should I speak to investigators or lenders?
You should consult a criminal defense attorney before making any statements.
Additional Resources
Florida Statute § 817.545 – Mortgage Fraud – Defines mortgage fraud offenses and outlines criminal penalties.
Florida Statute § 817.034 – Florida Communications Fraud Act – Often used to prosecute real estate fraud schemes involving multiple transactions.
Florida Bureau of Financial Investigation – Provides general information on how financial and real estate fraud cases are investigated.
Finding a Mortgage and Real Estate Fraud Defense Attorney in Gainesville, Florida
Mortgage and real estate fraud allegations can threaten your freedom, finances, and professional future. These cases require immediate and strategic legal defense.
Dean Galigani of the Galigani Law Firm represents individuals charged with mortgage and real estate fraud throughout Gainesville, Alachua County, Ocala, Lake City, and surrounding areas of Florida.
If you are under investigation or facing mortgage or real estate fraud charges, contact the Galigani Law Firm today at (352) 375-0812 for a free consultation and experienced legal guidance.
