Mail and wire fraud are powerful tools that federal prosecutors can use to enhance the severity of criminal charges, help secure convictions, and seek to impose substantial additional penalties on defendants in federal court. In recent years, federal courts have expanded the scope of activities that fall under the federal mail and wire fraud statutes while lowering the threshold for proving criminal intent. In addition, the Federal Sentencing Guidelines impose harsher penalties on individuals convicted of mail fraud, particularly when those crimes involve sophisticated, large-scale fraud. These changes are causing federal prosecutors to use mail fraud and wire fraud charges to seek harsher penalties and strengthen their negotiating position.

What Is Mail Fraud?

It occurs when a person uses the U.S. Postal Service or any commercial mail carrier with the intent to defraud. The crime is codified in 18 USC §1341. It encompasses any scheme to defraud or obtain money or property under false pretenses that uses the U.S. Postal Service or any commercial mail carrier. Similarly, wire fraud, codified in 18 U.S.C. §1343, occurs when a person sends a communication, whether it be an email, wire, fax or other digital communication, across state lines.

To establish this type of fraud, the government must prove:

1. Intent to Defraud. The defendant had the specific intent to defraud another party.
2. Material Misrepresentation. The defendant made a material misrepresentation or omission.
3. Use of the Mail. The defendant used the U.S. mail or another commercial mail carrier to further the fraudulent scheme; or
4. Transmission of and writing, communication, sound, etc., in interstate commerce.

What Is the Penalty for Federal Mail Fraud or Wire Fraud?

A single count of mail or wire fraud is punishable by up to 20 years in prison and a fine of $250,000. The amount of time depends upon the amount of the fraud. In addition, a defendant may be ordered to pay restitution, fines and forfeit any proceeds obtained through the fraudulent scheme.

Federal Prosecutors Are Reviving an Old Tool for Modern Cases

Federal prosecutors are increasingly using federal mail and wire fraud charges to enhance other criminal prosecutions or create aggravating circumstances that carry more severe penalties. By adding charges for mail fraud, a federal prosecutor can expand the scope of criminal liability and seek to impose larger fines and a longer prison sentence. This tactic is particularly effective when combined with charges for other federal white-collar crimes such as tax fraud, securities fraud, and bank fraud.

What is the Statute of Limitations for Prosecuting Such Cases?

The “statute of limitations” is the law that establishes a time limit within which criminal charges must be filed. The statute of limitations for federal mail fraud charges is generally five years from the date the fraudulent scheme was completed or when it should have reasonably been discovered.

If federal prosecutors fail to file charges of mail fraud within the five-year statute of limitations, the defendant can seek to have the case dismissed for being untimely filed.

Defending Against Federal Mail Fraud Charges

Defending against federal mail fraud charges is a complicated and challenging process that requires a strong and tenacious defense. Effective strategies for defending against these types of charges include:

1. Challenging intent. Intent is a key element of mail fraud. Showing the defendant lacked knowledge of any fraudulent scheme or that they had a legitimate purpose for their actions can undermine the strength of the prosecution’s case.
2. Attacking the use of the U.S. Mail or Interstate Communications. To establish mail or wire fraud, the prosecution must prove the defendant used the U.S. mail or another commercial mail carrier, or that communications traveled in interstate commerce, to obtain money or property under false pretenses. If the defendant did not use the mail or make a transmission in interstate commerce, in furtherance of the scheme, there can be no conviction for mail or wire fraud.
3. Showing no actual harm. The federal mail fraud statute criminalizes the scheme to commit fraud, but does not require proof of actual harm. Nonetheless, showing that no actual harm resulted from the alleged fraud can be an effective strategy to reduce the severity of the consequences of a mail or wire fraud conviction. It can also be used as a tool to prove lack of intent to defraud.

If you are under investigation or have been charged with federal mail or wire fraud, hiring a skilled and experienced defense attorney to mount an effective legal defense is crucial. Hope Lefeber has defended people charged with fraud and other federal white-collar crimes for more than 30 years. She has been consistently honored as a Pennsylvania Super Lawyer, as one of the Top 100 Trial Lawyers by the National Trial Lawyers Association, and as one of the Top 10 Criminal Defense Attorneys in Pennsylvania by the National Academy of Criminal Defense Attorneys. Ms. Lefeber has represented high-profile clients, published numerous articles, lectured on federal criminal law issues, and appeared on TV News as a legal expert.

Ms. Lefeber represents clients in Philadelphia and New York and surrounding counties, as well as in federal courts nationwide.

Contact the Law Offices of Hope Lefeber Today

To put the expertise of an experienced federal criminal defense attorney to work for you, contact the Law Offices of Hope Lefeber today.