Federal Wire Fraud charges under 18 USC Section 1343.
Federal wire fraud is one of the most commonly charged white-collar crimes in the United States. Governed by 18 U.S.C. § 1343, the statute is a powerful legal tool used by federal prosecutors to combat a wide range of fraudulent schemes involving electronic communications. This article explores the essential elements of wire fraud, the types of conduct that can trigger charges, and the potential penalties upon conviction.
What Is Wire Fraud Under 18 U.S.C. § 1343?
Wire fraud is defined broadly under 18 U.S.C. § 1343 as a scheme to defraud or obtain money or property by means of false or fraudulent pretenses, representations, or promises, transmitted by wire, radio, or television communication in interstate or foreign commerce.
The statute reads in part:
“Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses… transmits or causes to be transmitted by means of wire, radio, or television communication in interstate or foreign commerce, any writings, signs, signals, pictures, or sounds for the purpose of executing such scheme or artifice, shall be fined under this title or imprisoned not more than 20 years, or both…”
Elements of Wire Fraud
To secure a conviction for wire fraud, federal prosecutors must prove the following four elements beyond a reasonable doubt:
1. A Scheme to Defraud: There must be a deliberate plan or course of action intended to deceive or cheat another party, usually for financial gain.
2. Intent: The defendant must have acted knowingly and with the intent to defraud. Mere negligence or mistake is not sufficient.
3. Material Misrepresentation or Omission: The false statements or omissions must be “material,” meaning they are significant enough to influence the decision-making of the victim.
4. Use of Interstate Wire Communications: The scheme must involve the use of electronic communications (e.g., telephone, internet, email, text messages) across state lines or internationally. Even a single use of such a communication can satisfy this element if it is done in furtherance of the fraud.
Common Examples of Wire Fraud
Wire fraud can take many forms and is often used to prosecute:
* Online scams (e.g., phishing, romance scams)
* Investment fraud and Ponzi schemes
* Business email compromise (BEC) schemes
* Fraudulent invoices or wire transfers
* Telemarketing fraud
* Insurance or healthcare billing fraud
Because the statute is so broad, it is often used in conjunction with other charges such as mail fraud, bank fraud, or conspiracy.
Penalties for Wire Fraud
The penalties for wire fraud under 18 U.S.C. § 1343 can be severe:
* Standard Penalty: Up to 20 years in federal prison, fines, and restitution to victims.
* Enhanced Penalty: If the wire fraud affects a financial institution or is connected to a federal disaster relief program, the penalty increases to up to 30 years imprisonment and a $1,000,000 fine.
In addition to incarceration and fines, a conviction may result in:
* Restitution Orders: Compensating victims for their losses
* Forfeiture of Assets: Surrender of proceeds or tools of the fraud
* Collateral Consequences: Loss of professional licenses, immigration consequences, and reputational harm
Final Thoughts
Wire fraud under 18 U.S.C. § 1343 is a versatile and far-reaching statute that allows federal authorities to pursue a wide array of fraudulent activities that involve modern communications technology. Given the seriousness of the charge and the complexity of the law, anyone facing investigation or prosecution for wire fraud should consult with an experienced federal criminal defense attorney. Matthew Galluzzo is a former Manhattan prosecutor and federal criminal defense attorney. He has successfully defended many individuals investigated for and accused of wire fraud crimes in federal court. If you or a loved one have been accused of a wire fraud crime by federal agents, you should strongly consider contacting Mr. Galluzzo to discuss his legal services. Mr. Galluzzo defends individuals in New York City, New Jersey, White Plains (New York), and Connecticut federal courts.