What is Wire Fraud and What are the Penalties for Wire Fraud?

Wire fraud is a serious crime, with a long history. While the definition has changed and expanded over the years, the penalties remain severe. If you have been charged with wire fraud, your best defense resides with an experienced federal criminal defense lawyer who knows how to form the best defense.

If you’re facing federal wire fraud charges, it’s important to know what exactly constitutes wire fraud and what are the potential penalties including fines and jail time.

What is Wire Fraud?

The crime of wire fraud can trace its roots back to the late 1800’s, and the advent of electronic communication.

Western Union was one of the first companies to use their telegram technology to facilitate transfer of money between banks and individuals who were separated by great distances, known as a “wire transfer”. It wasn’t long after that people began exploiting the technology to defraud others out of money, and thus the crime of wire fraud was born.

In 1952, wire fraud was defined as a federal crime under 18 U.S.C. § 1343. This code established the use of electronic communications such as television, radio, or telephone to facilitate a fraudulent scheme across interstate and international boundaries as a federal crime.

In today’s day and age, the definition of wire fraud has been broadened, and constitutes any form of fraud that uses electronic communications, including the internet, to defraud or attempt to defraud victims.

Elements of Wire Fraud

According to the U.S. Department of Justice, there are four elements that define wire fraud:

1. That the defendant voluntarily and intentionally devised or participated in a scheme to defraud another out of money;

2. That the defendant did so with the intent to defraud;

3. That it was reasonably foreseeable that interstate wire communications would be used; and

4. That interstate wire communications were in fact used.

While there are 4 aspects to wire fraud, the actual application is rather broad.

Unlike traditional cases of fraud, the government doesn’t need to prove that the information presented to the victim was demonstrably false, nor does wire communication need to be central to the scheme. Nearly any message transmitted electronically that served to advance the scheme can be used as evidence in a wire fraud case.

Additionally, each message sent regarding the scheme may be considered a separate offense, especially if the messages were sent to multiple victims around the country.

Examples of Wire Fraud

There are a wide variety of crimes that can fall under the category of wire fraud. Some examples include:

• Identity Theft – Stealing and using personal identification like social security numbers or bank accounts to send money to yourself can be a form of wire fraud.

• Phishing – The act of using email or other electronic messages to attempt to gain access to personal information like credit card numbers or passwords.

• Telemarketing fraud – Using a telephone call to falsely represent oneself in an effort to have a victim transfer money is considered wire fraud.

• Social Media – Using an online marketplace to create false listings and defraud victims is a form of wire fraud.

• Tech Support Fraud – Using official sounding texts, emails, or other electronic messages to attempt to convince a victim that their computer or phone has been hacked or infected with a virus constitutes wire fraud.

• Phony Job Offers – Contacting individuals with illegitimate job offers is wire fraud.

• Phony Charities – Soliciting donations over phone or through the internet for non-existent charities also constitutes wire fraud.

What are the Penalties for Wire Fraud?

While there is no wire fraud minimum sentence, penalties can vary greatly.

If found guilty of wire fraud, jail time for individuals can range from no time served, to as many as 20 years in prison. Wire fraud punishments can also include up to $250,000 in fines.

The severity of wire fraud penalties depend on the exact nature of the crime committed. Violators can even be charged with multiple accounts, if there are multiple victims around the country.

If the target of wire fraud is a financial institution, penalties are even greater and can increase up to $1,000,000 in fines and 30 years in prison.

Organizations that are convicted of wire fraud also face stiff penalties. Organizations can face fines and imprisonment for individuals involved, as well as restitution (payback of stolen funds). Not only that, but organizations may be subject to asset forfeiture and even dissolution of the organization.
In federal wire fraud cases, the exact penalties are up to the discretion of the judge, however the victims themselves may be able to weigh in on the potential sentence.

What to Do if You Are Facing Federal Wire Fraud Charges?

Facing wire fraud charges is a harrowing ordeal. Whether you are guilty or not, if you have been charged with federal wire fraud, you need an experienced federal criminal lawyer to defend you. With the proper defense, you may be able to reduce or even have the charges dismissed.

At Azhari LLC, we handle federal wire fraud cases across the United States. We know the Federal Rules of Criminal Procedure, as well as local rules for specific jurisdictions. We represent clients from the investigation phase through the trial.

If you have been accused of wire fraud, or any federal crime in the United States, contact a criminal defense lawyer with Azhari LLC today and let us fight for you.