Charges of federal fraud can carry stiff penalties. Two of the most commonly charged federal fraud offences are mail fraud and wire fraud. These crimes are somewhat similar, but there are some important distinctions. Knowing how these charges are handled can give you some idea of what prosecutors have to show and what penalties may be imposed. If you are under investigation or have already been charged with a federal offense, a North Carolina criminal defense attorney can help. 

What Is Mail Fraud?

Mail fraud is a federal crime that involves the use of the mail system in a scheme to defraud another person or entity. Prosecutors don’t have to prove the mail itself was fraudulent. Instead, they usually must demonstrate that the mailing was used to further the purported scheme.

Mail fraud allegations involve sending false statements, fraudulent invoices, misleading advertisements, or other documents through the mail in an effort to obtain money, property, or other items of value.

Mail fraud cases can involve traditional postal services, as well as certain private or commercial carriers.

What Is Wire Fraud?

Wire fraud is essentially mail fraud, but using electronic communications rather than snail mail.

The charge of wire fraud generally involves the use of interstate wire communications in furtherance of a purported scheme to defraud. Typical examples are e-mail, phone calls, text messages, online transactions, electronic funds transfers, and other electronic communications.

Because so much business and personal communication now occurs electronically, wire fraud charges are frequently used in federal investigations involving alleged financial crimes.

How Are Mail Fraud And Wire Fraud Similar?

The two offenses share many of the same core elements. Either way, prosecutors usually must establish that the defendant knowingly participated in a scheme to defraud and used the mail or wire communications to carry out that scheme.

Both are prosecuted in federal court and can carry stiff penalties. In many investigations, prosecutors charge both mail fraud and wire fraud because the alleged conduct involved multiple forms of communication.

The government must prove each required element beyond a reasonable doubt before a conviction can occur.

What Penalties Can Apply?

Mail fraud and wire fraud carry heavy federal penalties.  Conviction may also result in substantial fines, restitution, supervised release, and imprisonment.

The exact penalties will depend on a number of factors, including the type of allegations, the amount of financial loss, the defendant’s criminal history, and whether other charges are filed in conjunction with the fraud counts.

Federal sentencing can be complex, so the consequences often extend beyond the basic statutory penalties.

How Do Federal Investigations Usually Begin?

Federal fraud investigations can be initiated in a number of ways. Sometimes a customer, employee, business partner, financial institution or government agency may make a complaint. In other cases, investigators may come across information while reviewing financial records or conducting a separate investigation.

Federal agencies usually spend months collecting evidence before they file charges. At this stage, investigators may inspect documents, examine financial records, interview witnesses and seek out electronic correspondence they deem relevant to the case.

If you find out that you are being investigated, don’t take it lightly, even if you have not been formally charged.

When Should You Contact A Lawyer?

If you have been contacted by federal investigators, have received a subpoena, have learned that you are the subject of an investigation, or have already been charged with mail fraud or wire fraud, it is important to get legal advice as soon as possible.

Federal criminal cases can move quickly, and the choices made early often have lasting repercussions. Understanding the difference between wire fraud and mail fraud is only one part of protecting yourself when facing federal charges.

If you’re facing federal fraud charges or think you may be under investigation, an experienced North Carolina criminal defence attorney at Ryan Willis Law can help. Call (919) 341-6294 or reach out online to discuss your case and learn more about your legal options.