The majority of criminal charges are prosecuted within the remit of state law, in accordance with authority conferred by the U.S Constitution. There are several crimes, however, which are prosecuted by the federal rather than state government. In this regard, two often used statutes that federal authorities apply in criminal proceedings are mail and wire fraud.
Examples of their use abound. Bernie Madoff, Elizabeth Holmes and Martha Stewart are some of the names of those who were accused of these crimes. Nevertheless, many people are still unclear regarding what these terms mean.
What is Wire Fraud?
For a person to be convicted of wire fraud (18 U.S.C. § 1343), the prosecution must prove all of the following four elements beyond a reasonable doubt:
- Devising or intending to devise any scheme or artifice.
There has to be an intention to create or an actual concoction of a scheme.
- The Purpose of which is to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises.
The defendant must act with the intention to commit fraud.
- There has to be transmission by means of wire, radio, or television communication in interstate or foreign commerce.
This is the element which separates wire fraud from other types of fraud. It requires use of a medium, described above, which constitutes a “wire.”
- Communication through any writings, signs, signals, pictures, or sounds.
There must be some type of written or auditory message that has been sent out using the “wire.”
The statute underlines the fact that wire fraud is similar to other types of deception except for the fact that it requires the use of one of the three mediums to further the fraudulent scheme: wire, radio, or television. A particular way in which a defendant can avoid conviction is by asserting there was no intent to defraud even if all the other acts required under this statute were undertaken. This is because intent is a necessary element of the crime. Wire fraud can attract a penalty of 20 years in prison or a fine, or both.
What is Mail Fraud?
Mail fraud (18 U.S.C. § 1341) is similar to wire fraud, except that the fraudulent communication that is sent must be mailed rather than delivered using a “wire.”
The elements of the crime of mail fraud are:
- Intended to, or were able to, devise a scheme or artifice.
Similar to the elements of the crime that constitute federal wire fraud, the mail fraud statute also requires creation of a scheme or plan.
- There must be an intention to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, or to sell, dispose of, loan, exchange, alter, give away, distribute, supply, or furnish or procure for unlawful use any counterfeit or spurious coin, obligation, security, or other article, or anything represented to be or intimated or held out to be such counterfeit or spurious article.
Conviction for mail fraud is based upon an intent to deceive, which can be evidenced by fraudulent misrepresentations or provision of counterfeit wares, amongst other acts.
- Places in any post office or authorized depository for mail matter, any matter or thing whatever to be sent or delivered by the Postal Service, or deposits or causes to be deposited any matter or thing whatever to be sent or delivered by any private or commercial interstate carrier, or takes or receives therefrom, any such matter or thing, or knowingly causes to be delivered by mail or such carrier according to the direction thereon, or at the place at which it is directed to be delivered by the person to whom it is addressed, any such matter or thing.
Ultimately, the fraudulent scheme must be carried out with the use of a mail carrier, whether it is the US Postal Service or another public or private mail delivery service.
The penalty for mail fraud is the same as wire fraud: up to 20 years in prison and a fine.
Higher Penalty
Prosecution under either statute can incur an even lengthier prison sentence of 30 years and, or, a $1 million fine in the event that the fraud relates to one of the following subjects: a financial institution, or a presidentially declared emergency or natural disaster.
The severity of the sentence depends on multiple factors, including the scope of the fraudulent scheme, the amount of money involved, and the impact on victims. Defendants with prior fraud-related convictions or those who orchestrated large-scale schemes may receive longer sentences under federal sentencing guidelines.
Beyond incarceration and fines, individuals convicted of mail or wire fraud may be ordered to pay restitution, forfeit assets, and serve supervised release.
Contact a Defense Attorney Today
Facing wire or mail fraud charges can be overwhelming, but an experienced defense attorney can help protect your rights and build a strong case. A knowledgeable lawyer can assess the prosecution’s evidence, identify weaknesses, and develop strategic defenses to fight the charges.
If you or someone you know is under investigation or has been charged with wire or mail fraud, seeking legal representation immediately is crucial. Contact a skilled defense attorney today to discuss your case and explore your legal options.
Contributions to this blog by Kennedy McKinney.
