Federal wire fraud is a serious offense that carries severe penalties. Obtaining the services of an experienced federal criminal defense attorney near you is essential to increasing your chances of avoiding a conviction or mitigating the severity of any sentence or other penalty imposed by the court.
It’s important to recognize that wire fraud is very often one count in a multicount indictment. Other crimes typically charged in wire fraud cases include money laundering, insurance fraud, tax evasion, bankruptcy fraud, conspiracy, and racketeering or RICO.
At Stechschulte Nell, Attorneys at Law in Tampa, we have successfully represented clients under federal indictment or wire fraud allegedly committed through a variety of methods. Federal law and criminal procedure rules are distinctly different from Florida state law. Only after years of experience in federal court practice does a criminal defense lawyer acquire the deep knowledge and subtle courtroom skills necessary to successfully provide a criminal defendant with the best possible defense. If you have been indicted for wire fraud or another federal criminal violation, contact our office in Tampa today.
What Is Federal Wire Fraud?
Federal wire fraud is a white-collar crime prohibited by the United States Code, Title 18, Section 1343. It involves the use of interstate wires, such as telephones, emails, texts, or any other means of electronic communications, to knowingly defraud someone of money or property. With the continual advancement of digital technology and wireless communication, wire fraud charges can involve a tremendously varied range of alleged fraudulent activities.
The classic example of federal wire fraud is a Ponzi scheme. A Ponzi scheme is one promising a high return on investments, but which actually uses funds from new investors to pay off earlier investors, creating a facade of profitability while ultimately causing significant financial losses. No money is ever invested.
The most famous recent example of a large-scale Ponzi scheme is the one committed by Bernard Madoff involving more than $64 billion. However, smaller, less complex Ponzi schemes are regularly presented to unsuspecting consumers through mass emailing campaigns and other interstate and international communications.
Other common forms of wire fraud include falsely seeking or obtaining funds or benefits from Medicare or Medicaid, securities fraud, insider trading, identity theft, embezzlement using interstate communication networks to commit the crime or in furtherance of the crime, bank fraud, and insurance fraud. Many other means of committing wire fraud exist.
The specific nature of a person’s plan to defraud someone is less significant to the prosecution of wire fraud than the method used to execute the plan. Use of any interstate “wire” or “wireless” electronic or digital transmission or receiver (including TV or radio) to commit or facilitate the fraud will empower the government to file federal wire fraud charges.
Penalties for Federal Wire Fraud
Federal wire fraud is a serious felony offense. The penalties for wire fraud are outlined in Title 18, Section 1343 of the United States Code. The potential sentences include prison terms and very substantial fines in the hundreds of thousands of dollars.
Federal Prison Terms
The prison sentence for wire fraud varies depending on the specific circumstances of the case. Generally, an individual convicted of wire fraud can face up to 20 years in federal prison. If the fraudulent scheme occurred in an area under a presidentially declared major disaster or affected a financial institution, the maximum prison term can increase to 30 years.
Large Fines
Individuals convicted of federal wire fraud may face fines of up to $250,000. In cases involving organizations or corporations, the fine can increase to a maximum of $500,000. If the case involves a financial institution, the fine could rise to $1 million.
Restitution
In addition to fines and imprisonment, a wire fraud conviction includes a requirement to pay restitution to the victims. Restitution payments in some cases are so large that the person convicted would need decades to repay it. Unless a court is satisfied that a defendant is unable to pay the restitution at a given time, the court may revoke the defendant’s supervised release, return them to prison, or impose other sanctions, depending on the individual circumstances in each case.
Asset Forfeiture or Disgorgement
Federal law permits the government to seize assets acquired through wire fraud or used in the commission of the crime. This includes bank accounts, real and personal property, and other assets obtained through fraudulent means.
When a wire fraud defendant is convicted of crimes related to securities fraud, a standard penalty in addition to other penalties is disgorgement or repayment of any profits received as a result of the crime.
Defending Against Federal Wire Fraud Charges
While being charged with federal wire fraud might initially cause you to panic, an experienced federal wire fraud defense lawyer can employ several effective defense strategies to challenge the prosecution’s evidence and ensure that your rights are protected. These are some of the legal defenses that are most effective in defeating the prosecution’s attempt to win a conviction.
Lack of Intent
Wire fraud requires that the defendant acted knowingly and with the intent to defraud. The facts of the case sometimes seem to show fraud when the defendant was simply mistaken or too optimistic about the potential return for the alleged victim. Without proof of the defendant’s specific intent to defraud the victim, a conviction for wire fraud should not occur.
Insufficient Evidence
No conviction can be established unless the prosecution can produce sufficient evidence to prove each of the required elements of the crime beyond a reasonable doubt. In a federal wire fraud prosecution, the government must prove the following:
- This particular defendant (identification)
- knowingly and willfully participated in a scheme with intent to defraud, and
- used interstate wire communications in furtherance of the scheme.
The quality of the evidence will be tested and challenged by an experienced federal criminal defense lawyer. Their focus will include discrediting the credibility and reliability of the prosecution’s evidence. This requires a comprehensive knowledge of the law and skills developed over many years of practice.
Proving most of the elements of the crime is not enough. Every one of the elements must be proved beyond a reasonable doubt.
Procedural Violations of Defendant’s Constitutional Rights
One of the most fruitful avenues of defense is identifying instances of police or prosecution misconduct while investigating, collecting, or handling the evidence in preparation for trial. The law prohibits government authorities from searching or seizing evidence under most circumstances without a lawful warrant issued by a neutral magistrate and based on probable cause. This and other constitutional protections must be respected by law enforcement, or the evidence can be inadmissible against the defendant in court.
Statute of Limitations
Federal wire fraud charges must be filed within five years of the last criminal act in most cases. If the fraud involved a financial institution, the government has ten years to indict a defendant. While this defense is not common, it is a complete bar to prosecution when it is raised in the appropriate case.
Skilled Federal Wire Fraud Defense at Your Side
It’s crystal clear that facing federal wire fraud charges is no walk in the park. The stakes are high, and the complexities of federal law make navigating these charges especially tricky. This isn’t the time to take chances. If you find yourself in the crosshairs of a federal wire fraud investigation or indictment, your next move could make all the difference.
That’s where our experts at Stechschulte Nell step in. We’ve been in the trenches and know how to protect your rights effectively. If you’re dealing with wire fraud charges or any other federal criminal matter, don’t hesitate. Reach out to us at 813-280-1244. Let’s talk about your case and explore your best defense strategies. Remember, in the world of federal criminal defense, experience isn’t just an advantage—it’s a necessity.
