Many people have heard the term “wire fraud” in news reports involving federal criminal cases, but few understand what the charge actually means. Despite the name, unlawful wire fraud is not limited to complicated financial schemes or large corporations. It is a broad federal offense that can occur in a wide variety of situations involving electronic communications.
At its core, wire fraud generally involves an alleged scheme to obtain money, property or something of value through false or fraudulent representations, combined with the use of interstate electronic communications. The “wire” portion of the offense refers to communications that travel through electronic systems such as telephone networks, the internet or other forms of electronic transmission.
How wire fraud offenses typically play out
In today’s world, many ordinary activities involve interstate electronic communications. Sending an email, making a phone call, transferring funds electronically, submitting online forms or communicating through certain digital platforms may potentially satisfy the communication element of a wire fraud allegation. Because electronic communications routinely cross state lines, federal authorities often have jurisdiction over these cases.
Examples of conduct that may lead to wire fraud allegations include investment scams, fraudulent business transactions, online sales schemes, phishing operations, false loan applications and certain forms of insurance or healthcare fraud. However, the existence of a failed business deal or an inaccurate statement does not automatically mean wire fraud occurred.
In order to secure a conviction, prosecutors generally must prove more than a simple mistake or misunderstanding. Federal prosecutors typically must show that the accused knowingly participated in a scheme to deceive others. Negligence, poor judgment or an honest error may not satisfy the government’s burden of proof.
Because wire fraud statutes are broad and federal investigations can move quickly, anyone who learns they are under investigation should take the matter seriously. Speaking with an experienced criminal defense legal team is an ideal way to get started.