Can a Bank Fraud Case be Settled Before Going to Trial?
Facing a Bank Fraud Charge in Los Angeles? Here’s What You Need to Know About Settling Before Trial
If you’ve been accused of bank fraud in California—whether under state law or in a federal investigation—one of the most urgent questions on your mind may be: Can this case be settled before trial?
The answer is yes, many bank fraud cases are resolved long before a courtroom is involved. In fact, early negotiation is often the most strategic and discreet way to protect your future, especially if you’re a professional or business owner with a reputation to uphold.
At The Law Offices of Arash Hashemi, we’ve helped clients across Los Angeles quietly and successfully resolve serious white collar charges, including bank fraud, wire fraud, embezzlement, and forgery. With over 20 years of experience, we understand how prosecutors build these cases—and how to intervene before they get that far.
What Is Bank Fraud in California?
Bank fraud generally refers to any scheme or act designed to illegally obtain money, assets, or property from a financial institution. These cases are often charged under California Penal Code 470 (forgery), 487 (grand theft), or in more serious cases, federal statutes like 18 U.S. Code 1344.
Some examples include:
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Falsifying loan or mortgage applications
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Forging checks or bank statements
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Using someone else’s identity or account to withdraw funds
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Creating or depositing fraudulent checks
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Laundering money through financial institutions
While these cases sound technical, they’re extremely serious. Federal bank fraud charges can carry up to 30 years in prison and fines of $1 million or more, depending on the circumstances.
Can Bank Fraud Charges Be Settled Before Trial?
Yes—and in many cases, they should be. Prosecutors often pursue restitution, cooperation, and negotiated agreements in white collar matters rather than lengthy trials, especially when:
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The defendant is a first-time offender
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The amount of money involved is not unusually large
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You have the ability to repay or resolve the financial harm
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The conduct was non-violent and there was no organized criminal intent
Settling the case early may involve one or more of the following strategies.
Pre-Filing Intervention (Before Charges Are Filed)
If you are being investigated—but have not yet been formally charged—this is your best window of opportunity. A defense attorney can approach the investigating agency or prosecutor’s office to:
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Present mitigating evidence
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Negotiate reduced or alternative charges
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Offer restitution or financial resolution
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Highlight a lack of intent to defraud
This can prevent the case from ever reaching court—or reduce the severity of the charges that are ultimately filed.
Plea Bargains & Deferred Prosecution
If charges have already been filed, your attorney may be able to negotiate a plea deal that avoids jail time, reduces the offense to a misdemeanor, or even qualifies you for diversion or probation.
Some resolutions may include:
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Reduced charges (e.g., from a felony to a misdemeanor)
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Deferred sentencing agreements (charges dismissed after compliance)
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Restitution in lieu of incarceration
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No-admission civil settlements in parallel with criminal negotiations
In rare cases, your defense attorney may even be able to resolve a federal bank fraud case through a non-prosecution agreement if you cooperate and no formal charges are filed.
What If You’re Innocent or Wrongfully Accused?
Not every case should be settled. If you did not commit fraud, or if the prosecution’s evidence is weak, your attorney may recommend preparing for trial while continuing to negotiate in the background.
This can include defenses such as:
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Lack of fraudulent intent (you believed the information provided was accurate)
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Mistaken identity (your name or credentials were used without your knowledge)
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Procedural violations (unlawful search or seizure, improper investigation)
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Entrapment or overreach by law enforcement or bank investigators
What Makes Federal Bank Fraud Cases Different?
If your case is being investigated or charged by the FBI, Secret Service, or U.S. Attorney’s Office, the stakes are even higher. Federal prosecutors are aggressive—and they often begin their investigations long before you even know you’re a target.
If you’ve received a target letter, been interviewed by agents, or had documents subpoenaed by a grand jury, do not wait. You may still have time to resolve the case before indictment, but time is not on your side.
Early Legal Representation Can Change the Outcome
Bank fraud cases are fact-intensive, paper-heavy, and often involve months of investigation before formal charges are ever filed. But that also means your attorney has time to act. If you get legal representation early, you may be able to:
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Avoid formal charges entirely
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Negotiate a civil or financial resolution
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Keep the case out of public record
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Minimize or eliminate jail time
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Protect your professional license or reputation
Under Investigation or Charged with Bank Fraud in Los Angeles? Explore Your Options Before Trial
If you’re facing accusations of bank fraud — whether under California law or in a federal investigation — early legal action is critical. Many of these cases can be resolved discreetly through pre-charge negotiations, civil settlements, or favorable plea agreements that avoid jail time and public exposure.
At The Law Offices of Arash Hashemi, we represent professionals, business owners, and individuals in complex white collar cases across Los Angeles. With over 20 years of experience, Attorney Hashemi understands how to navigate financial crime allegations with discretion and strategy. Whether you’re under investigation or already charged, our goal is to protect your future, your freedom, and your reputation.
The sooner you act, the more control you have. Reach out now to discuss your options with a Los Angeles criminal defense attorney experienced in settling bank fraud cases before trial.
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