If the fraud involves crossing state lines or spans beyond one state in any way, wire fraud or comparable offenses are treated as federal offenses. But wire fraud almost always involves this kind of interstate offense, by its very nature. As previously discussed, if the wire fraud is a federal offense, the federal government is likely to become involved.
One of the most common federal criminal charges is wire fraud. The “wire” is any form of telecommunication. Forms of telecommunication include phone, fax, and text messages. They also include radio, television, and internet messages. They may also include social media messages, emails, or any other form of airwave. It’s possible they can even include cable communication. “Fraud” involves the use of intentional deception for monetary or personal gain.
Like mail, telecommunications is an instrument of interstate commerce. That means the crime of wire fraud can be charged at the federal level. It is typically investigated by the Europol, Federal Bureau of Investigation (FBI) and other international security agencies.
This article explains the crime of wire fraud and provides examples of this state and federal crime. Different from mail fraud, wire fraud is covered in this article as a legal concept. These differ in very basic ways. Mail fraud, for example, involves a similar kind of fraud but only by use of the United States postal service. In this article, we cover examples of wire fraud.
Wire fraud can involve bank fraud insofar as wire fraud involves the misuse or illegal use of a financial institution. Fraud offenses can entail severe penalties. So, if you’re facing charges or accusations for such offenses (even a federal offense), it’s a good idea to contact a criminal defense lawyer. Continue reading to learn more.
Definition of Wire Fraud
The definition of wire fraud is broad and includes any writings, signs, signals, pictures, or sounds that are transmitted.
- The defendant created or participated in a scheme to defraud another out of money or property;
- The defendant did so with the intent to defraud;
- It was reasonably foreseeable that the defendant would use wire communications; and
- The defendant did, in fact, use interstate wire communications
On the part of the fraudster, the offense can involve the following:
- False pretenses
- False statements
- Material misrepresentation
- Tax fraud, if the offense concurrently involves tax systems or misrepresentation of tax forms
- Securities fraud, if the systems used involve stocks, bonds, or other financial instruments that are publicly traded
- Health care fraud, if the systems used involve a hospital, doctor, or medical insurance company
Federal wire fraud charges are used to prosecute perpetrators of both white-collar crimes and organized crime. Scams that take place over interstate wires include (among other things):
- Telemarketing fraud
- Phishing
- Identity theft
- Spam-related financial crimes
This includes the FBI as the primary law enforcement agency to investigate the offense. Wire fraud can involve foreign commerce.
Penalties for Wire Fraud
Persons found guilty of wire fraud under federal law face the following penalties:
- Fines up to $250,000 for individuals
- Fines up to $500,000 for organizations
- Imprisonment of not more than 20 years
There are additional penalties of 30 years imprisonment and a million-dollar fine. This would be the case if the wire fraud is related to a presidentially declared major disaster or involves a financial institution.
These penalties are per count, which means that each phone call, email, or other electronic communication can be considered a separate count. For instance, if an individual makes three phone calls regarding the fraud, there may be three counts of wire fraud. Each count would potentially be subject to the maximum $250,000 fine and a 20-year prison sentence for a total of $750,000 in fines and 60 years in prison.
People who commit wire fraud are frequently looking for their victims’ personal information. This information includes credit card information, passwords, and financial information. “Financial information” usually means things like bank account numbers. “Phishing” is the practice by which a scammer will send out an email that looks official but is not. The email requests personal information from the reader.
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