18 U.S.C. § 1343 | Federal Wire Fraud

18 U.S.C. § 1343 - Federal Wire Fraud Law

Wire fraud, as defined under 18 U.S.C. § 1343, is a serious federal offense involving fraudulent activity that utilizes any electronic communication. It is among the most intricate federal crimes, carrying severe penalties and punishments for the underlying fraudulent activity.

Wire fraud, in essence, is a federal crime that can occur when a perpetrator uses any form of wire communication, such as a phone, internet, text messages, instant messages, broadcast over TV or radio, email, or internet transmissions, in an attempt to commit fraud. This broad scope underscores the need for caution in all electronic communications.

18 U.S.C. § 1343 - Federal Wire Fraud Law

Wire fraud is defined as using any type of electronic communication to commit a crime.

Wire fraud is prosecuted as a federal crime when the communication crosses state lines or international borders.

This law imposes severe punishments if a defendant is convicted of devising a scheme to defraud or obtain money or property using pretenses by transmitting wire communication in interstate commerce. These penalties can include substantial fines and lengthy prison sentences under the federal sentencing guidelines, underscoring the severity of the consequences.

Often, wire and mail fraud are charged in the same indictment. Notably, the perpetrator does not have to complete the intended offense to be convicted of it. In other words, an “attempted” wire fraud is penalized the same as a completed one.

The Federal Bureau of Investigation (FBI) is the primary law enforcement agency investigating wire fraud allegations. The United States Department of Justice (DOJ) is responsible for seeking an indictment on federal crimes, such as wire and 18 U.S.C. 1341 mail fraud, which include some primary elements of the crime, such as the following:

The existence of a fraudulent scheme,
You made a material misrepresentation,
You possessed the necessary intent (“mens rea”) to commit the crime,
The use of interstate electronic communications to execute it.

We see these wire fraud cases arise in various contexts. For example, someone might be involved in a real estate deal where they are wiring money, and it is a fraudulent transaction; therefore, that person gets charged with wire fraud. You wouldn't really think that.

Based on that, you would think there would be some sort of real estate fraud charges, and sometimes there are, but for some reason, the government loves that wire fraud charge. Anytime money is being moved by the computer or by the bank, they can get you for wire fraud because you're right in their area when you're moving money, and some sort of fraudulent activity is taking place.

Suppose you are convicted of wire fraud. You are facing hefty fines and prison time under the federal sentencing guidelines. Let's review this federal statute in more detail below.

What Does the Law Say?

18 U.S. Code 1343 wire fraud says, “Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property using false or fraudulent pretenses, representations, or promises, 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….”

The statute also has language making it a federal crime when violations occur related to any authorized benefit in connection with a presidentially declared major disaster or emergency.

The penalties under this law include a fine of up to $1,000,000 or 30 years in federal prison, or both. The severity of the penalty depends on the amount of money involved in the fraudulent activity and the defendant's criminal history.

What Are Some Examples?

Some common 18 U.S.C. 1343 wire fraud cases include the following:

Work-at-home schemes advertised on the Internet,
Fraudulent online investment opportunities,
Phishing scams to get unauthorized access to accounts, such as sending fraudulent emails to deceive people into disclosing personal information, such as passwords, credit card numbers, and social security numbers.
Telemarketing fraud, such as calling people under false pretenses to persuade them to give up credit card information,
False radio or TV ads to sell a product that does not exist or that was grossly exaggerated.

What Are the Related Federal Crimes?

18 U.S. Code Chapter 63 Mail Fraud and Other Offenses has several federal statutes that are related to 18 U.S.C. 1343 wire fraud, such as the following:

18 U.S.C. 1341 - Fraud and swindles occur when someone uses the U.S. Postal Service to carry out a fraudulent scheme;
18 U.S.C. 1342 - Fictitious name or address;
18 U.S.C. 1344 - Bank fraud;
18 U.S.C. 1345 - Injunctions against fraud;
18 U.S.C. 1346 - Definition of “scheme or artifice to defraud”
18 U.S.C. 1347 - Health care fraud;
18 U.S.C. 1348 - Securities fraud, which includes fraudulent acts concerning investments or securities;
18 U.S.C. 1349 - Attempt and conspiracy;
18 U.S.C. 1350 - Failure of corporate officers to certify financial reports;
18 U.S.C. 1351 - Fraud in foreign labor contracting.

Another related crime is Internet fraud which utilizes online services to defraud or steal from individuals, such as phishing emails directing people to fake websites to gather their personal information.

What Is "Round Tripping" in Trading?

Round tripping, a deceptive financial maneuver, involves the repetitive buying and selling of the same or similar financial assets, often between related entities. It is used to create a misleading impression of financial health or generate artificial revenue. This makes it crucial for investors to remain cautious and vigilant.

Round-trip trading, in essence, is the unethical practice of repeatedly buying and selling shares of the same security multiple times. This deceptive maneuver is designed to mislead observers into believing that the security is in higher demand than it actually is, thereby creating a false impression of financial health.

It's essential to note that this type of 'churning' behavior, which involves the repetitive buying and selling of securities, differs significantly from the legal open and close transactions of day traders or ordinary investors. Every investor ultimately completes a round trip when they buy and later sell a security; however, the key difference lies in the intent behind these transactions.

Round tripping involves a series of transactions in which funds or assets are transferred from one entity to another and then back to the original entity, often through intermediaries or shell companies.

The main purpose is to inflate financial figures, create a false appearance of increased business activity, or manipulate financial statements. It can occur in various forms and across different industries, including accounting, trading, and capital markets.

The legal repercussions of round-tripping can be severe. If suspected of engaging in this practice, individuals and entities may face federal charges, including wire fraud, securities fraud, tax fraud, and even RICO charges.

What Are the Penalties for 18 U.S.C. 1343?

Suppose you are convicted of wire fraud. In that case, you could face harsh penalties, including large fines and up to 20 years in federal prison.

Suppose your wire fraud case involved a financial institution like a bank. In that case, you could face up to 30 years in prison.

Notably, the sentences above apply to each count of wire fraud, and all separate counts could result in a substantial additional prison time. For example, suppose you are convicted of 10 separate counts of wire fraud with multiple victims. In that case, you are facing up to a 200-year sentence.

What Are the Defenses for 18 U.S.C. 1343?

Suppose you have been charged with the federal crime of wire fraud. In that case, our federal criminal defense lawyers can employ various strategies to achieve the best possible outcome. What we have you do is have you come into the office. We sit down and review all the facts and details, and then we strategize how to defend you.

Contact our federal defense lawyers for help.

Perhaps we can argue that there was a lack of intent. Recall that a wire fraud case requires a prosecutor to prove that you had a specific intent to commit fraud. Perhaps we can demonstrate that you were not aware of participating in a fraudulent scheme and that there was no intent to defraud anyone.

Often, it can be challenging for a federal prosecutor to prove all the required elements of the crime beyond a reasonable doubt.

Perhaps we can argue mistaken facts, meaning that you were unaware that the statements you were making were false. Simply put, you were mistaken about a product's capabilities and provided incorrect information unintentionally.

If your guilt of wire fraud is not in doubt, we might be able to negotiate a favorable plea bargain with the federal prosecutor. Perhaps you could plead guilty to a lesser charge with a more lenient sentence. Sometimes, people decide to cooperate with the prosecution and give details and information about somebody else.

At other times, we will defend you by filing a motion or motions to try to get your case dismissed, but we need the facts to support those motions. You can't just file a motion in every case and expect to be successful. You need detailed facts that give you a good angle to file a motion in a federal wire fraud case.

Once we have the game plan together, I will provide you with an idea by reviewing the federal sentencing guidelines and determining the type of sentence you might face.

We'll talk about whether you could succeed in a motion or a trial. Once we determine the best course of action for you and your circumstances, we will take all necessary precautions to secure the best possible resolution for you.

Our federal defense attorneys routinely appear in the Central District of California courtrooms and the United States District Court in Los Angeles. We offer a complimentary case evaluation by phone or through our contact form. The Hedding Law Firm is located in Los Angeles, CA.

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