Wire fraud occurs when you use electronic communications to perpetrate a fraud scheme. It is a federal offense that can result in serious criminal penalties.
This guide will explain what wire fraud is in more detail, the consequences of a wire fraud conviction and the options for defending yourself if you have been accused of this type of crime.
What Is Wire Fraud?
Wire fraud is a federal crime. It is similar to mail fraud, but it specifically criminalizes the use of electronic means of communication to perpetrate any type of fraud scheme. Electronic means of communication can include TV, radio or the internet, among others.
If you illegally use any electronic methods of communicating across state lines or internationally, you can potentially be convicted of this offense.
Legal Definition of Wire Fraud
Wire fraud, or fraud by radio, wire or television, is defined in 18 U.S. Code section 1343. The law makes it illegal to:
- create a scheme or artifice (or intend to do so) that is designed to use false or fraudulent pretense to obtain money or property
- create writings, signs, signals, pictures or sounds that contain pretenses, misrepresentations or false promises in furtherance of that scheme
- use wire, radio or television communication to transmit this information in interstate or foreign commerce
If you violate this law by engaging in prohibited fraudulent communications, you could be fined and imprisoned for up to 20 years. If the scheme is connected to any federally declared disaster or emergency, this penalty is increased. For example, if you try to defraud someone after a hurricane or wildfire, you could face fines up to $1 million and up to 30 years in jail.
Elements of Wire Fraud
After you are indicted on wire fraud charges, a prosecutor must prove four elements to secure a conviction. Let’s break them down.
Engaging in a Scheme To Defraud
You must have become involved in a scheme to trick or fool others in order to commit wire fraud. You could conceive of the scheme yourself or become part of a plan made by someone else.
Making Material Misstatements or Omissions
You must make some type of false writing, sign, signal, picture or sound. These falsities must be material. In other words, you must lie or fail to disclose information about something important.
Transmitting Communications via Wire, Radio or Television
Finally, you must transmit your falsities to others using wire, radio or television across state lines or internationally.
Wire Fraud vs. Mail Fraud
Both mail and wire fraud are criminalized under federal law in 18 U.S.C. Chapter 63 (Mail Fraud and Other Fraud Offenses).
Mail fraud is defined in 18 U.S. Code Section 1341. The mail fraud statute states that it is illegal to:
- devise (or intend to devise) any scheme or artifice in order to defraud or to obtain money or property by false or fraudulent pretense
- use the post office or mail to execute or advance the scheme
Like wire fraud, mail fraud carries a potential penalty of up to 20 years imprisonment, or up to 30 years if the fraud is connected to a federally declared disaster or emergency.
Essentially, both statutes criminalize using communications to commit any type of fraud offense. If you use the mail to try to trick someone into giving you money, property or other items of value, you can be found guilty of mail fraud. On the other hand, if you use an electronic means of communication, then you can be found guilty of wire fraud.
Legal Defenses Against Wire Fraud Charges
If you have been accused of wire fraud, you have a number of potential defenses to raise.
Lack of Intent
You must have intentionally created or become involved in a scheme to defraud someone. You also must have intentionally used electronic communications in furtherance of that goal. A prosecutor must prove that you acted for the purposes of furthering your scheme.
No Fraud Occurred
You also must have committed fraud, which means you must have made material misstatements or omissions. If there was no scheme to defraud or if you didn’t make any efforts to advance such a scheme, you shouldn’t be convicted of wire fraud.
No International or Interstate Communications
Wire fraud requires international or interstate communications using electronic means. If there were no communications across state lines and no international communications, then the prosecutor cannot prove this necessary element of the offense.
Insufficient Proof
Finally, it’s vital to remember you don’t have to prove your innocence. The burden is on the prosecutor to prove that you are guilty beyond a reasonable doubt in order to secure a conviction. If there is not sufficient evidence that you violated the law against wire fraud, then you should be acquitted.
You may be able to keep evidence from being used to prove guilt if it was obtained in an unlawful search or if it was obtained after your Miranda rights were violated. If you can get evidence suppressed, then you can make it harder for the prosecutor to prove your guilt.
Punishments for Wire Fraud
If convicted of wire fraud, you could be imprisoned for up to 20 years, or for up to 30 years if the fraud was connected to a federally declared emergency, such as a flood or other natural or human-made disaster.
To find out more details about wire fraud, check out these answers to frequently asked questions about this serious federal offense.
Frequently Asked Questions (FAQs) About Wire Fraud
How long is the sentence for wire fraud?
Do wire fraud victims get their money back?
If you’re scammed with wire fraud, can it be reversed?
How much time is needed to investigate a wire transfer?
Which state has the highest rate of wire fraud?
Is there a big difference between bank fraud and wire fraud?
How does one spot a fake wire transfer?
The information on this page does not constitute legal advice, nor does use of or access to this page create an attorney-client relationship between any parties. Information provided on Forbes Advisor is for informational purposes only. Your legal situation is unique and the attorneys and services we rank may not be right for your circumstances. Consult with an attorney to obtain advice on your particular legal matter.
Local News
Comments / 0