Federal Wire Fraud Law - 18 U.S.C. § 1343
Under federal law, wire fraud is generally described as any fraudulent activity involving the use of any type of electronic communication. This federal fraud crime has its penalties, such as fines and imprisonment, and additional punishments for the underlying offense, which could include restitution to the victim or forfeiture of assets.
Simply put, this law imposes federal penalties against anyone who devises a scheme to defraud or obtain money or property by transmitting wire communication in interstate commerce, which refers to any commercial transactions or communications that cross state lines under false pretenses.
The United States Department of Justice (DOJ) plays a pivotal role in seeking an indictment for alleged wire fraud offenses, given its federal nature and the seriousness of thefederal crime.
Title 18 U.S. Code 1343 fraud by wire, radio, or television says, "Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, transmits or causes to be transmitted by means of wire, radio, or television communication in interstate or foreign commerce, any writings, signs, signals, pictures, or sounds for the purpose of executing such scheme or artifice, shall be fined under this title or imprisoned not more than 20 years, or both.
If the violation occurs in relation to, or involving any benefit authorized, transported, transmitted, transferred, disbursed, or paid in connection with, a presidentially declared major disaster or emergency (as those terms are defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122)), or affects a financial institution, such person shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both."
Notably, the main elements of wire fraud are the existence of a fraudulent scheme and the use of interstate electronic communications to execute or attempt to execute the illegal scheme.
Wire Fraud is related to 18 U.S.C. § 1341 mail fraud, and often, both federal statutes are used in the same federal indictment. Mail fraud is the use of the U.S. postal service to carry out a fraudulent scheme.
Most states have laws that make wire fraud illegal, such as California Penal Code 502 PC unauthorized computer access and fraud.
However, wire fraud can be prosecuted as a federal crime when the communication crosses state lines or international borders. Wire fraud cases are tried in federal court by federal prosecutors. If convicted, the defendant will serve time in federal prison.
What is Wire Fraud?
Simply put, wire fraud is a federal offense that occurs when someone attempts to commit fraud using any form of wire communication (phone, email, text).
As noted above, 18 U.S.C. 343 makes it illegal to "devise any scheme or artifice to defraud, or for obtaining money using false or fraudulent pretenses, representations, or promises" through wire communications. Wire fraud can occur in many different ways, such as the following:
- Internet-related online seller fraudulently charges a customer money for a product.
- Work-at-home schemes advertised on different websites.
- Phishing scams designed to gain unauthorized access to accounts. Sending out a fraudulent email in an attempt to deceive people into disclosing personal information, such as passwords, credit card numbers, social security numbers, etc.
- False prize-winning, such as emails sent out to people claiming the receiver has won a prize, but to claim it, they must send money.
- Telemarketing fraud, such as calling people under false pretenses, typically posing as a phony company, to convince them to divulge personal information or make a payment via credit card.
- Securities fraud, which is fraudulent acts concerning investments or securities. These are often charged in tandem with wire fraud because they involve fraudulent wire transfers.
- Fraudulent TV or radio ads, such as using television or radio to advertise a product that either doesn't exist or has grossly misrepresented results.
- Spam-related fraud,
- Offer of false investment opportunities over the Internet.
What is a "Wire Communication?"
The term "wire communication" covers almost any type of electronic device, including the following:
- Phone calls,
- Text messages,
- Emails,
- Television or radio broadcast,
- Internet transmissions,
- Instant messaging.
Notably, a defendant does not have actually to complete the crime to be convicted of wire fraud. Simply put, attempted wire fraud is penalized the same way.
What Must Be Proven to Convict You?
The federal prosecutor has to prove, beyond a reasonable doubt, that you engaged in a scheme to commit fraud by making a material misrepresentation, used some wire mechanism, and possessed the necessary intent to commit the crime.
For conduct to be considered wire fraud under federal law, it must contain the following elements of the crime:
- There must be a plan or scheme in place, meaning you engaged in a system using false misrepresentation or omission over something.
- You must utilize wire communication to further the fraudulent scheme.
- You must have a specific intent to commit fraud, meaning you possessed the required "mens rea" or mental state.
Federal prosecutors must demonstrate to the jury that all three of the above elements were present for them to obtain a conviction for wire fraud.
As noted, it's crucial to remember that you don't have to succeed in defrauding someone to be convicted of wire fraud. Rather, you only have to have attempted to do so.
This means that even if no money changed hands or no fraudulent product was issued, you can still be found guilty of wire fraud if you intended and tried to complete the fraudulent transaction.
What are the Penalties for 18 U.S.C. 1343 Wire Fraud?
Suppose you are convicted of wire fraud. In that case, you will face the following penalties under the U.S. sentencing guidelines:
- Typically, a single count of wire fraud can result in up to 20 years in federal prison, a fine, or both.
- If the wire fraud involves a financial institution (banking scheme) or a natural disaster (falsely claiming to raise money for victims), the prison sentence could be as high as 30 years.
- Federal prison sentences are per each count of wire fraud, and every separate count can result in additional prison time.
What are Related Federal Laws?
18 U.S. Code Chapter 63, Mail Fraud and Other Fraud Offenses, has several related federal statutes, including the following:
- 18 U.S.C. 1341 - Frauds and swindles.
- 18 U.S.C. 1342 - Fictitious name or address.
- 18 U.S.C. 1343 - Fraud by wire, radio, or television.
- 18 U.S.C. 1344 - Bank fraud.
- 18 U.S.C. 1345 - Injunctions against fraud.
- 18 U.S.C. 1346 - Definition of "scheme or artifice to defraud."
- 18 U.S.C. 1347 - Health care fraud.
- 18 U.S.C. 1348 - Securities and commodities fraud.
- 18 U.S.C. 1349 - Attempt and conspiracy.
- 18 U.S.C. 1350 - Failure of corporate officers to certify financial reports.
- 18 U.S.C. 1351 - Fraud in foreign labor contracting.
What are the Common Wire Fraud Defenses?
Suppose you are charged with federal wire fraud. In that case, a federal criminal defense lawyer could use various arguments to challenge the case, as discussed below.
Perhaps we can argue there was a lack of intent. Since wire fraud requires an intent to commit fraud, maybe we can show evidence that you were an unwitting participant in a fraudulent scheme and that you had no intention of defrauding anyone.
Specific intent is often difficult for a prosecutor to prove in a federal wire fraud case because it's difficult to know exactly what a defendant was thinking at the time. Sometimes, people may not have known they were committing wire fraud.
Perhaps we can argue mistaken facts. We might be able to argue that you were unaware that the statements or assertions you were making were false.
Simply put, you were mistaken about the product or service and were passing that misinformation without the intent to deceive.
In cases where your guilt is not in doubt, we might be able to negotiate a favorable plea bargain with the federal prosecutor. Perhaps we could arrange a guilty plea for a lesser offense in return for a recommendation of a lighter sentence before the judge.
We appear in the Central District of California courtrooms and the United States District Court in Los Angeles. Cron, Israels & Stark are located in LA County.
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