Document showing bank fraud in an account.

An Overview of U.S. Bank Fraud Laws

There are two primary bank fraud laws in the U.S.: the Financial Institutions Anti-Fraud Enforcement Act of 1990 (“FIAFEA”) and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (“FIRREA”). Individuals who report bank fraud pursuant to these laws may be entitled to financial compensation. Below is an overview of FIAFEA and FIRREA. If you have information that an individual has committed bank fraud, please contact a bank fraud whistleblower attorney today to discuss your compensation options. 

FIAFEA

FIAFEA was passed in the wake of the savings and loan crisis, and it allows people to report violations of criminal laws that impact financial institutions, including banks and credit unions. FIAFEA creates a civil cause of action for whistleblowers who report crimes like mail and wire fraud.

FIRREA

FIRREA was passed in response to a series of savings and loan failures, and it imposes a three-tier schedule of civil penalties that may be assessed against institutions and their employees for breaches of fiduciary duty.

FIRREA and FIAFEA Whistleblower Claims 

In order to be eligible for financial compensation for reporting bank fraud, a whistleblower must disclose information related to specific violations of the above laws. These violations include:

  • Making false statements or entries in records and books;
  • Receiving illegal gifts or commissions in exchange for receiving loans;
  • Using false statements on loan applications;
  • Money laundering;
  • Bad loans servicing and underwriting violations;
  • Theft, embezzlement, or misapplication of funds by an employee or bank officer;
  • Overvaluing securities;
  • Presenting a false claim to the government;
  • Concealing assets from a government receiver, conservator, or liquidator;
  • Mail fraud; and
  • Wire fraud.

Financial Compensation for Reporting Bank Fraud

A whistleblower who provides original information to the Department of Justice about violations of the above laws may be eligible for a financial reward. Specifically, whistleblowers may receive up to 30 percent of any recovery up to the first $1 million, up to 20 percent of the next $4 million recovered, and up to 10 percent of the next $5 million recovered. Clearly, the government values the information provided by whistleblowers and rewards them handsomely for information that leads to the recovery of government funds. Therefore, if you have information that may lead to the recovery of funds under the above laws, please contact our bank fraud whistleblower attorney as soon as possible. 

Contact Our Bank Fraud Whistleblower Attorney 

At Newman & Shapiro, we understand the career risks associated with blowing the whistle on bank fraud. Therefore, when you come to us for bank fraud whistleblower representation, we will work tirelessly to protect your rights, your job, and your reputation. Our whistleblower attorneys have a reputation for providing our clients with first-rate representation before the Department of Justice and in federal court. Knowing that dealing with the justice system can be difficult, we will stand by you every step of the way as you pursue financial compensation as a bank fraud whistleblower. Please contact us for a consultation.