The United States has federal laws that restrict the loans provided and terms of credit transactions. Violation of these laws and credit transactions considered extortionate can cause criminal charges at the federal or state level.
When facing criminal charges connected to an extortionate extension of credit, you can get the representation of a financial extortion attorney from the Zoukis Consulting Group.
We’ll defend you against your charges in court and consult with you on life in federal prison if things come to that. Book your consultation with us today.
You can also learn more about the extortionate extension of credit crime below.
What Is an Extortionate Extension of Credit?
It is a crime in the United States to extend credit to someone when you also know that you or someone else will use extortionate means of punishment should the borrower fail to repay the loan.
An extortionate extension of credit involves the threat of force or harm when collecting on a loan—also called loan sharking.
The borrower may require money to fund activities such as gambling or purchasing illegal services or products but cannot go to a bank for a loan. The justice system considers extortionate lending a high-level crime because of its links with organized crime.
Lender users extortionate means to force a borrower to repay, including threats of violence to the borrower and their family, imposing unreasonable interest rates, or taking property.
Extortionate actions might include threatening to reveal photos or socially damaging information and blackmail.
People offering extortionate extensions of credit to others are often called loan sharks. A loan shark might offer a loan and charge extremely or excessively high interest rates and threaten violence as a motivation not to be late with repayment.
Penalties for Extortionate Lending
In creating or collecting the loan, an extortionate extension of credit crime is punishable in federal courts. The courts use three different statutes of Chapter 42 Extortionate Credit Transactions:
- Making extortionate extensions
- Financing extortionate extensions
- Collecting on extensions of credit via extortionate means
These are serious charges that carry maximum sentences of 20 years and fines each. Sentences can be worse when the charge includes assault, racketeering, and other serious allegations.
You likely face grave consequences in case of a conviction for federal loan extortion. It is critical you immediately retain a criminal attorney who has previously defended against these charges in federal court.
An experienced financial extortion lawyer from the Zoukis Consulting Group will help increase the chances of reducing the charges or penalties.
Elements of a Federal Extortionate Extension of Credit Charge
Prosecutors may assume your extension of credit was extortionate, depending on several factors. A credit extension is extortionate when:
- The victim is led to believe that nonpayment will lead to physical or social harm.
- The accused party deliberately tries to finance, collect, or make extensions of credit through force or threats (knowingly or unknowingly).
- The credit extension has a charge of over 45% annually.
Other Offenses Involving Extortion of Credit
Extortionate extension of credit might be related to other criminal offenses. The court can permit the prosecutor to bring evidence of a defendant’s reputation for these criminal acts to determine the latter’s extortionate intent.
Racketeering
The law defines racketeering as a criminal activity pattern engaged by organized crime organizations and gangs. Racketeering charges include fencing stolen property, drug distribution, and gambling.
Extortion
It is criminal extortion to threaten someone to do something or refrain from doing something against their will. Blackmail is another term used in place of extortion.
Money Laundering
Laundering money involves moving it around to impede the government’s ability to track the source of funds. Money laundering may be used to hide money from drug activity or embezzled from a company.
Criminal Usury
It refers to the act of applying predatory loan practices or excessive loan rates to credit facilities.
How Can a Federal Financial Extortion Attorney Help?
There are several defenses an attorney can put up to achieve a successful dismissal of an extortionate extension of credit charge. These include:
- When there is insufficient proof in the case, such as when the prosecution cannot establish if you acted with full intent.
- Mitigation of the charge if the attorney can show someone coerced to act as you did and that you did not have the cognitive capacity to engage in the crime.
The Zoukis Consulting Group can help you understand the federal statutes on extortionate extension of credit transactions. We’ll set you up with an attorney who will go to work for you to ensure you have the best legal strategy for responding to wrongdoing accusations.
Contact a Financial Extortion Lawyer Today
You owe it to yourself to be represented by a knowledgeable and experienced attorney who truly cares about your case’s outcome. We’ll fight your charges in court and can even collect resources for you on making it through federal prison if it comes to that.
Contact the Zoukis Consulting Group today for an initial case consultation to get the help you deserve.
Published Feb 15, 2022 by Christopher Zoukis, JD, MBA | Last Updated by Christopher Zoukis, JD, MBA on Jun 13, 2023 at 2:39 pm
