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Federal Wire Fraud FAQs

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Feb 03 2025
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Wire fraud is one of the most frequently prosecuted white-collar crimes in federal courts. It’s not limited to elaborate schemes or large corporations—it can involve anything from a single deceptive email to a complex, multi-million-dollar fraud operation. With federal prosecutors actively pursuing convictions and strict sentencing guidelines in place, even a single wire fraud charge can disrupt your career, finances, and future.

If you’re facing federal wire fraud charges, you need an experienced Houston, TX  Federal Fraud Lawyer who understands how these cases are built and can aggressively defend your rights. Visit John T. Floyd Law Firm to learn how we can help protect your future.

What Is Federal Wire Fraud?

Federal wire fraud is a serious crime under 18 U.S.C. § 1343, which criminalizes any scheme to defraud another person or entity using electronic communications. This can include emails, phone calls, text messages, or even online platforms—essentially any form of communication transmitted across state or international lines.

What Are Common Examples of Wire Fraud?

●      Email Scams: Sending deceptive emails to solicit money or sensitive information, such as phishing schemes, where the victim is tricked into sharing bank account details.

●      Business Email Compromise (BEC): Impersonating an executive or trusted colleague via email to manipulate employees into transferring funds or sensitive data.

●      Investment Fraud: Promising high returns on investments through fake websites, emails, or online platforms, only to steal the investor’s money.

●      Online Retail Scams: Selling fake goods or failing to deliver products purchased through e-commerce websites or payment platforms.

●      Lottery or Prize Scams: Contacting victims electronically, claiming they’ve won a prize but must pay fees upfront to claim their winnings.

What Are the Penalties for Federal Wire Fraud?

A conviction for wire fraud can result in:

●      Imprisonment: Up to 20 years per count. In cases involving financial institutions or affecting a federally declared disaster, the sentence may increase to up to 30 years.

●      Fines: Substantial monetary penalties, often reaching hundreds of thousands of dollars or more.

●      Restitution: Repaying victims for their financial losses caused by the fraud.

How Do Federal Investigations Into Wire Fraud Work?

How Do Federal Investigations Into Wire Fraud Work?

Federal investigations into wire fraud are conducted by agencies such as the FBI, the Department of Justice (DOJ), and sometimes other agencies like the Securities and Exchange Commission (SEC) if the fraud involves securities or investments. Here’s how these investigations typically unfold:

●      Initial Complaint: Investigations often begin with a complaint from a victim or a whistleblower who reports suspicious activity.

●      Evidence Collection: Investigators gather electronic communications, financial records, and any other documentation related to the alleged fraud.

●      Interviews and Subpoenas: Authorities may interview witnesses and issue subpoenas to obtain additional records or compel testimony.

●      Indictment: If sufficient evidence is gathered, the government will file formal charges, often through a grand jury indictment.

What Are Possible Defenses Against Wire Fraud Charges?

●      Lack of Intent: Arguing that the accused did not knowingly or willfully participate in a scheme to defraud.

●      No Scheme to Defraud: Demonstrating that the communications in question do not constitute a fraudulent scheme.

●      Insufficient Evidence: Highlighting weaknesses or gaps in the prosecution’s evidence, such as the lack of concrete proof linking the accused to the fraud.

●      Entrapment: Showing that law enforcement induced the accused to commit an act they would not have otherwise committed.

Can You Be Charged for Wire Fraud Without Intent?

Intent is a key element in federal wire fraud cases, and prosecutors must prove that the accused acted knowingly and with the intent to defraud. Without intent, there is no wire fraud. However, this doesn’t mean unintentional acts or misunderstandings are free from scrutiny. For example:

  • Misleading Statements: If an electronic communication is deemed misleading or deceptive, it may raise red flags even if the sender didn’t intend to defraud.
  • Errors in Financial Transactions: Innocent mistakes that appear fraudulent may lead to investigations.

To convict someone of wire fraud, prosecutors must prove three elements:

  • A Scheme to Defraud: There must be an intentional plan or deception to deprive someone of money, property, or honest services.
  • Use of Electronic Communication: The fraud must involve using electronic communication tools across state lines.
  • Intent: The accused must have knowingly and willfully participated in the fraudulent scheme with the intent to deceive.

The federal nature of wire fraud charges arises because electronic communications often cross state lines, giving federal agencies jurisdiction to prosecute these cases.

Trust a Proven Houston, TX Federal Criminal Defense Lawyer

Facing federal wire fraud charges can feel overwhelming, but you don’t have to go through it alone. John T. Floyd, a leading federal criminal defense lawyer based in Houston, has built a reputation for successfully defending clients accused of complex white-collar crimes. His deep understanding of federal laws, meticulous preparation, and courtroom advocacy sets him apart in these high-stakes cases.

Don’t let federal prosecutors dictate your future. Call a Houston federal criminal defense attorney at John T. Floyd Law Firm (713) 224-0101 or contact us online today to schedule a consultation.

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