18 U.S.C. § 371 – Conspiracy to Defraud the United States
18 U.S.C. § 371 is the primary federal conspiracy statute. It allows prosecutors to charge two or more people with conspiring either to commit a federal crime or to defraud the United States — even if the underlying offense was never completed.
Federal conspiracy charges are powerful tools. They allow prosecutors to expand criminal liability, admit broader evidence, and increase sentencing exposure. In many federal cases, conspiracy is charged alongside the substantive offense.
If you are under investigation or indicted for conspiracy under 18 U.S.C. § 371, you are facing serious federal penalties and need immediate legal representation.
Your best hope for a favorable outcome is with an experienced criminal defense attorney at the Hedding Law Firm in Los Angeles. To schedule a consultation, call (866) 986-2092 or use the contact form here.
What Is 18 U.S.C. § 371?
18 U.S.C. § 371 makes it a federal crime when:
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Two or more people agree to commit a federal offense, or
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Two or more people agree to defraud the United States or a federal agency, and
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At least one conspirator commits an overt act to further the conspiracy
The statute applies broadly to nearly any federal offense or scheme that impairs government functions.
What Does “Defraud the United States” Mean?
To “defraud” the United States does not only mean stealing money.
It includes:
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Obstructing a lawful government function
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Impairing or interfering with a federal agency
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Deceiving the government to gain unlawful advantage
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Cheating the government out of property or funds
Even interference with regulatory enforcement may qualify.
Elements of Federal Conspiracy Under § 371
To obtain a conviction, prosecutors must prove beyond a reasonable doubt:
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Two or more people entered into an agreement;
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The agreement was to commit a federal offense or defraud the United States;
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The defendant knowingly and willfully joined the agreement;
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At least one overt act was committed in furtherance of the conspiracy.
An overt act can be minor, such as:
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Purchasing supplies
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Conducting surveillance
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Sending a wire transfer
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Drafting paperwork
The act does not need to be illegal by itself.
Is a Written Agreement Required?
No.
The government does not need to show a written contract or formal agreement. A conspiracy may be proven through circumstantial evidence, including:
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Communications
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Financial transactions
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Coordinated actions
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Statements by co-conspirators
Mere presence at the scene of a crime, however, is not enough.
Common Federal Offenses Charged With § 371
Conspiracy charges frequently accompany other federal crimes, including:
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Securities fraud
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Drug trafficking
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False statements
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Racketeering (RICO)
In white-collar cases, § 371 is often charged alongside substantive fraud counts.
What Is an “Overt Act”?
An overt act is any step taken to further the conspiracy's objective.
Examples include:
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Opening a bank account
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Transferring funds
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Renting storage space
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Purchasing equipment
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Conducting meetings
If one conspirator commits an overt act, all members of the conspiracy may be held liable.
What Are the Penalties for 18 U.S.C. § 371?
If the underlying offense is a felony:
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Up to 5 years in federal prison
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Up to $250,000 fine for individuals
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Up to $500,000 fine for organizations
If the object of the conspiracy is a misdemeanor, the punishment cannot exceed the maximum penalty for that misdemeanor.
Federal sentencing guidelines may significantly increase exposure depending on:
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Loss amounts
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Number of victims
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Leadership role
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Obstruction of justice
Why Conspiracy Charges Are Powerful
Federal conspiracy law allows prosecutors to:
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Introduce co-conspirator statements as evidence
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Hold each member responsible for foreseeable acts of others
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Expand venue and jurisdiction
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Increase leverage in plea negotiations
Even individuals who played minor roles may face substantial exposure.
Common Defenses to § 371 Charges
Defense strategies depend on the facts but may include:
No agreement
There was no meeting of the minds to commit a crime.
No knowledge
The defendant did not knowingly join the alleged conspiracy.
No overt act
The government cannot prove any act was taken in furtherance.
Withdrawal
The defendant withdrew from the conspiracy before any overt act occurred.
Lack of intent
The defendant did not intend to defraud or commit a federal offense.
Federal conspiracy cases often hinge on intent and participation.
Frequently Asked Questions
Can I be charged with conspiracy even if no crime occurred?
Yes. The agreement and overt act alone can support charges, even if the underlying offense was never completed.
Do all conspirators have to meet together?
No. Members may never meet face-to-face.
Can I be responsible for what others did?
Possibly. You may be liable for foreseeable acts committed by co-conspirators.
Is conspiracy always a felony?
Generally yes, particularly when tied to felony offenses.
What if I was only loosely associated with others?
Mere association is not enough. The government must prove knowing participation.
Why You Need a Federal Criminal Defense Attorney
Federal conspiracy cases are document-intensive and often involve:
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Recorded communications
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Financial tracing
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Cooperating witnesses
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Grand jury testimony
An experienced federal criminal defense attorney can:
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Analyze the scope of the alleged conspiracy
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Challenge admissibility of co-conspirator statements
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Attack the existence of an agreement
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Prepare for federal trial
Early intervention can significantly impact charging decisions and sentencing outcomes.
Speak With a Federal Criminal Defense Lawyer
If you are under investigation or indicted for conspiracy to defraud the United States under 18 U.S.C. § 371, you face serious federal penalties.
Our federal criminal defense attorneys have extensive experience defending complex conspiracy cases in federal court. Call today for a confidential case evaluation and strategic defense consultation.
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