Wire fraud is one of the most commonly used federal statutes in white collar criminal cases. Many people assume that if they sent an email or text message, or made a phone call or wire transfer, they will automatically be charged. However, the use of interstate or foreign electronic communications is only one element. The government still has to prove the elements of the offense beyond a reasonable doubt, and there are many ways to challenge allegations. If you are facing a federal investigation involving a business dispute, financial transaction, or online activity involving allegations of wire fraud, speak with a federal criminal defense lawyer immediately. Do not assume you have no defenses or recourse.
What Is Wire Fraud?
Wire fraud involves making deceptive representation using electronic communications with criminal intent that induces someone to part with money, property, or something material. To secure a conviction, federal prosecutors must generally establish four core elements beyond a reasonable doubt:
A Scheme or Artifice to Defraud
A situation that initially looks like a commercial disagreement involving a contract, investment, payment, or business interest can escalate into a wire fraud case if federal investigators believe there to be a plan or course of conduct of intentional deception to induce someone to depart with money, property, or something material.
Knowing and Intentional Participation
Prosecutors must establish that you were not accidentally involved but that you knowingly and intentionally participated in a coordinated plan to deceive someone. Mistakes, bad business outcomes, poor judgment, or reliance on incorrect information are not proof of criminal intent.
Material Misrepresentation
The alleged misrepresentation must be significant enough to influence a decision to send money, transfer property, enter into a transaction, or otherwise depart with something material. Not every statement is material.
Use of Interstate Wires
Communication “by means of wire, radio, or television communication in interstate or foreign commerce, including any writings, signs, signals, pictures, or sounds” is a broad jurisdictional element of the wire fraud statute.
Why Wire Fraud is Alleged in So Many Federal Investigations
Nearly all modern commercial activity involves interstate electronic communications (e.g., emails, text messages) and financial transactions (e.g., wire transfers, online payments, and server-based communications). The government may attempt to stretch even minor communications into federal wire fraud charges.
An alleged scheme may involve multiple people, businesses, financial accounts, transactions, and jurisdictions, with emails, phone calls, payment systems, or bank transfers connecting the activity. Federal investigators routinely audit years activity and communications to connect separate transactions into a single alleged conspiracy. Federal prosecutors may allege wire fraud together with money laundering, investment fraud, business fraud, healthcare fraud, securities fraud, cryptocurrency schemes, bank fraud, tax offenses, or other white collar crimes when the same conduct allegedly involves multiple violations.
Sentencing of Wire Fraud
20 years is the standard maximum penalty; however, this is not what a person can reasonably expect their sentence to be. Under 18 United States Code § 1343, if the conduct is dealing with a financial institution, or if it occurs during a time of a crisis, a national emergency, imprisonment may be up to 30 years.
Potential Defenses of Wire Fraud Allegations
Good Faith
A financial loss or commercial disagreement does not equal a crime. If you acted honestly and believed your statements to be true at the time, that can directly undermine the government’s claim of intent to defraud.
Mistake of Fact
You may have acted based on incorrect information that was believed to be true at the time without any intent to deceive. Misunderstanding financial data, relying on inaccurate third-party information, or making an error in judgment does not automatically amount to fraud.
Lack of Intent
Sending an email or text is not enough to make someone guilty. Proof of criminal intent is required, and that standard creates meaningful opportunities to challenge the government’s case.
Non-Materiality
Not everything is considered material. There are many ways in which what a person departs with is not material. It’s not money. It’s not property. It might be information, an idea, or a decision, but not something that is legally considered material.
What Should I Do if the Feds Contact Me?
You may learn that your business or financial transactions are being investigated when federal agents call you, knock on your door, or show up at your workplace, or when you receive a subpoena.
Do not speak. Do not turn over documents. Do not even breathe in their direction without an attorney.
Contact a federal criminal defense attorney as soon as possible.
Do not delete, alter, or destroy records or communications, and avoid discussing the investigation with friends, colleagues, employees, business partners, or other parties.
Mistakes with Federal Agents: Why You Need a Wire Fraud Lawyer Immediately
Many people panic and assume they must immediately negotiate a plea deal. Nationally recognized trial lawyer David Tarras, founder of Tarras Defense, often sees the following misconceptions.
“I must respond to law enforcement or the feds. If I don’t give them the information or documents they are asking for, it will be held against me.”
Reality: Federal agents may try to create a false sense of urgency, but you have a constitutional right under the Fifth Amendment to remain silent. Exercising that right cannot be used against you in court. Speaking to them without counsel, however, even in an “informal” attempt to explain your side of the story, can provide investigators with statements that may later be used as evidence against you.
“If I hire a lawyer, the feds will think that I’m a criminal.”
Reality: Retaining legal counsel is a standard, protective business step, not an admission of guilt. The feds often prefer when an attorney is on board to communicate and facilitate the investigation without violating the subject’s rights.
“I’m out of hope. I have no options.”
Reality: There are always options, even when the feds are at your door. A wire fraud lawyer can evaluate the government’s allegations, review financial and digital evidence, communicate with investigators when appropriate, and develop a defense strategy. Early intervention may create opportunities to address misunderstandings, challenge the government’s interpretation of transactions, and seek a resolution before criminal charges are filed.
Proven Defense in Wire Fraud Cases
Tarras Defense represents individuals, executives, business owners, and professionals facing federal investigations and white collar criminal allegations. Based in Boca Raton, Florida, our firm focuses on strategic federal defense from the earliest stages of an investigation.
Wire Fraud: Prison Avoided, Probation Only
In a federal wire fraud case carrying significant prison exposure, Tarras Defense obtained an extraordinary outcome of no incarceration despite federal sentencing guidelines that called for a prison sentence.
Wire Fraud Conspiracy: Downward Variance to Six Months
In a fraudulent car loan scheme, Tarras Defense persuaded the Court to impose six months in custody followed by supervised release, rather than a substantially longer prison sentence.
$57 Million FOREX Investigation: No Charges Filed
In a $57 million foreign-exchange investment fraud investigation, Tarras Defense convinced federal prosecutors and SEC criminal investigators in the Middle District of Florida (Orlando Division) to decline prosecution, resolving the matter without criminal charges.
We focus on pursuing the strongest possible outcome at every stage and protecting your reputation, freedom, and future. Contact Tarras Defense for a confidential consultation.
Call: 954-592-9416
Email: David@TarrasDefense.com
Disclaimer: The information provided on this website and in any related blog posts is for general informational and educational purposes only. It should not be interpreted as legal advice for any specific case or situation. Viewing or receiving this content does not create an attorney-client relationship, and no such relationship is formed unless expressly agreed to in writing with the firm.
Frequently Asked Questions: Wire Fraud
Can A Business Dispute Become a Wire Fraud Case?
A business dispute does not automatically become a wire fraud case simply because money or electronic communications are involved. However, allegations of intentional deception combined with interstate electronic communications can lead to a federal investigation. An experienced attorney can evaluate whether the government’s allegations actually support the elements of wire fraud.
Does Sending an Email or Text Message Automatically Count as Wire Fraud?
The presence of an email, text message, or electronic payment does not by itself establish wire fraud. The government must still prove the required elements of the offense, including the alleged fraudulent scheme and the defendant’s intent, beyond a reasonable doubt.
What Evidence Is Reviewed in a Wire Fraud Investigation?
Federal investigators may review extensive digital and financial evidence, including:
- Emails and text messages
- Phone records and electronic communications
- Bank and wire transfer records
- Online payment transactions
- Business and accounting records
- Cryptocurrency transactions and digital wallets
- Contracts, invoices, and financial statements
- Computer files and other electronic records