Wire fraud and mail fraud are closely related federal crimes. Defendants may face charges for both offenses, depending on the circumstances involved in the alleged crime. This means that the potential legal penalties could be substantial, including time in prison and heavy monetary fines.
The attorneys of Joseph, Hollander & Craft know what it takes to put together a compelling legal defense. Learn how we can help you avoid the more significant punishments these crimes often entail.
The Elements of Federal Wire Fraud
Wire fraud involves the use of phone, electronic mail, or electronic messaging to defraud a person, organization, business, or government entity. The crime is federal in nature when it involves interstate or foreign commerce. Someone who tries to defraud someone in another state will therefore invite federal prosecution.
According to the U.S. Department of Justice, there are four essential elements of a federal wire fraud charge:
- Participation in a fraudulent scheme: This means voluntarily and knowingly participating in an effort to defraud another party of money or property.
- Intent: Next, the government must show that the defendant participated in a fraudulent scheme with the intention of actually defrauding the victim of money or property.
- Foreseeable: It must have been reasonably foreseeable that interstate wire communications (e.g., electronic mail) would be used in furtherance of the crime.
- Actual use of interstate communications: Finally, the defendant must have actually used interstate wire, radio, or television communications to accomplish the fraudulent act.
The federal government has jurisdiction to regulate interstate commerce under the Constitution’s Commerce Clause, which enables a prosecutor to be bring federal as opposed to state charges against the accused.
Examples of Federal Wire Fraud
It helps to understand some of the most common examples of federal wire fraud. These include:
Email Scams
The use of electronic mail or email to perpetrate scams is almost as old as the internet itself. Some scams, like the so-called Nigerian prince email scam, attempt to trick people into handing over their financial information to thieves in exchange for what is purported to be a significant amount of money. These emails are less common today because most people are aware of them, but they do still occur.
The more sophisticated approach to committing email fraud involves what is known as phishing. Phishing happens when a scammer sends an email to someone purporting to be from their bank or another trusted source. The email asks the person to reply with the same information as the Nigerian prince scam, but the communication here looks as if it is actually authentic.
Fake Contests
Scammers often contact people by text message, phone, email, and in other ways to inform them that they have won a fake contest or sweepstakes. The unsuspecting victim may not remember actually entering a contest, but they are lured by the prospect of winning money. The scammer is told that they will be sent a check in exchange for paying a “relatively small processing fee.”
Most victims are willing to pay a little to receive a lot, so they willingly hand over their credit card or other financial information. The scammer takes the money and either does not send anything to the victim or they send a worthless check.
Romance Scam
Criminals are always ready to capitalize on someone’s loneliness, and the romance scam is a popular way of doing so. In a romance scam, the scammer contacts the victim via social media, a dating app, or in some other way, and strikes up a conversation. With time and effort, the criminal gains the trust of the victim, whose judgment is clouded by the prospect of a relationship.
At some point, the scammer relays a supposed hardship. They claim to need money for a medical expense or to pay bills, and they rely on the relationship they have built with the victim up to that point. Their target is often more than happy to send money – then never hear from the person again.
Classic Fraud
Not all wire fraud schemes involve the elaborate efforts as those in the scams above. Many of these crimes simply involve a person promising a product or service in exchange for money, and then deliberately failing to make good on it. For instance, a person may list an item for sale on Facebook Marketplace, accept payment, and then never deliver the item to the buyer.
Contrasting the Elements of Federal Mail Fraud
Mail fraud is largely similar to the scams discussed above. The primary difference between mail fraud and wire fraud is the means a person uses to commit the alleged crime. Under the federal mail fraud statute, the defendant is accused of using either the U.S. Postal Service or a private or commercial service, such as FedEx or UPS, to commit the crime.
Wire fraud and mail fraud are sometimes charged simultaneously. This is often because the accused is charged with using both electronic interstate means (wire fraud) and the mail system (mail fraud) to break the law. Whenever possible, prosecutors will try to add wire fraud charges to a mail fraud charge, primarily because the prison sentence for wire fraud is more severe.
Potential Punishments for Wire Fraud and Mail Fraud Convictions
Mail fraud is usually punishable by up to 20 years in prison, whereas a person convicted of wire fraud could face up to 30 years in prison. As long as electronic means, like email, the internet, social media, and texting, continue to be popular methods of communication, prosecutors will continue to bring wire fraud charges against suspects.
But prison time is not the only possible consequence of a fraud conviction. In addition, a defendant could expect:
- Monetary fines of up to $250,000 ($1 million if the fraud affects a financial institution)
- Asset forfeiture
- Restitution
- Probation
- Revocation of licenses and security clearance
The personal and financial repercussions of a fraud conviction can be severe. The defendant will have a criminal record that will make it more difficult to maintain steady employment or even find a job. Worse, the loss of a license or clearance will bar the defendant from working in certain industries ever again.
How We Defend Against Wire Fraud and Mail Fraud Charges
Depending on the facts in your case, one or more possible defenses may be available to you. These include:
- Lack of intent: Since fraud is a crime of intent, the absence of intent or knowledge of a crime could undermine the prosecution’s case. You will need to produce strong evidence to counter the government’s claims.
- Lack of jurisdiction: If the activity in question can be proven not to cross state lines, this could be a viable defense. You will likely need a digital forensic specialist who can assist with the technical evidence required to prove this.
- Problems with the evidence: The government has the burden of proving beyond a reasonable doubt that you committed a crime. You and your attorney may be able to show that the evidence was illegally obtained or is otherwise unreliable or inadmissible in court.
- Statute of limitations: Wire fraud and mail fraud in general carry a statute of limitations of five years. If the fraud involved a financial institution such as a bank, this increases to ten years. Failure to prosecute before these deadlines expire could result in the case being thrown out.
Our Overland Park Legal Team Is Ready to Help
If you are facing charges of wire fraud or mail fraud, our Overland Park office is ready to assist you. Connect today with the team at Joseph, Hollander & Craft.
Our main office is located at the corner of 10th & Cherry Street in Kansas City, MO, near the Jackson County Courthouse. We also have offices in Lawrence, Topeka, and Wichita for your convenience.
