Wire fraud allegations often lead to federal prosecution. Like other federal crimes prosecuted at the federal level, wire fraud can lead to substantial financial consequences, jail time and a permanent criminal record.
People sometimes misunderstand the basis of wire fraud claims. They may think of wire transfers, such as the direct transfer of mortgage funds from one bank to another via the Federal Reserve during a home sale. However, those circumstances might constitute banking or financial fraud, not necessarily wire fraud.
Wire fraud, as outlined in federal criminal statutes, actually relates to the use of communications infrastructure as part of a fraudulent scheme.
What systems might lead to wire fraud allegations?
Wire fraud statutes specifically reference radio, television and wire transmissions, such as telegraphs, as well as telephone calls. The name comes from the use of wires to transmit information across large distances. The law now extends to most modern forms of telecommunications and broadcasting.
Updated wire fraud standards also apply to digital telecommunications. Phishing emails and the creation of websites to defraud buyers or investors are modern examples of wire fraud.
Any scheme that involves direct phone calls, whether to landlines or mobile phones, text messages, emails, broadcast advertisements or digital technology could lead to federal wire fraud allegations. Transmitting information, including written words or images, to defraud others, can justify charges that carry up to 30 years in federal prison.
Those accused of federal financial crimes may need help exonerating themselves or minimizing the penalties imposed. Reviewing the charges brought by federal prosecutors or the details of a pending investigation with a criminal defense attorney can help people avoid mistakes that can worsen their circumstances.