Federal Fraud Charges: An Overview of Common Offenses in California
Fraud crimes are prosecuted aggressively at the federal level, carrying potentially severe penalties. Understanding the most common types of federal fraud charges in California can help you spot issues and avoid legal jeopardy.
This article will explain key federal fraud laws, analyze common schemes that lead to charges, outline potential penalties, and provide tips on choosing an experienced white collar defense lawyer if you’re being investigated or charged.
Key Federal Fraud Statutes
Prosecutors typically charge fraud under these main laws:
- Wire fraud – Covers any scheme to defraud using interstate wires (phone, internet, etc.)
- Mail fraud – Covers any scheme to defraud using the U.S. mail
- Bank fraud – Covers fraud involving financial institutions
- Securities fraud – Covers fraud relating to the market for stocks, bonds etc.
- Healthcare fraud – Covers fraud against public or private health insurance programs
Other laws target specific areas like mortgage fraud, tax fraud, identity theft, computer hacking, and more. Prosecutors often stack multiple charges against defendants.
Penalties for Federal Fraud Convictions
Potential penalties for federal fraud convictions include:
- Prison time – Years or even decades depending on the scheme
- Fines – Up to $1 million for individuals, more for corporations
- Restitution – Repaying victims for losses
- Asset forfeiture – Losing property connected to the fraud
- Supervised release – Probation following incarceration
The judge determines penalties based on federal sentencing guidelines and the scope of the fraud. The consequences can be severe, so mounting an aggressive defense is critical.
Common Federal Fraud Schemes
Some fraud schemes that often lead to federal charges in California include:
Wire Fraud
- Investment scams
- Romance scams
- Online auction fraud
- Non-delivery of goods
- Credit card schemes
- Phishing/spoofing
Mail Fraud
- Fraudulent contests/sweepstakes
- Fraudulent billing
- Fraudulent charitable solicitations
- Fraudulent insurance claims
Bank Fraud
- Check kiting
- Credit/loan fraud
- ATM skimming
- Fake deposits
Securities Fraud
- Insider trading
- Accounting fraud
- Ponzi schemes
- Pump-and-dump schemes
Healthcare Fraud
- Billing for unnecessary services
- Upcoding services
- Kickback schemes
- Prescription fraud
This covers just a sample of potential frauds. Prosecutors are constantly pursuing new types of schemes as technology and the economy evolve.
How Federal Fraud Cases Develop
Investigations often begin with:
- Whistleblower reports from insiders
- Audits or data analysis detecting anomalies
- Customer complaints
- Law enforcement tip-offs
Prosecutors then gather evidence by:
- Obtaining search warrants for records/correspondence
- Analyzing financial statements and accounts
- Interviewing witnesses and targets
- Working with informants
- Conducting surveillance
Building a viable defense requires understanding how the investigation unfolded and any constitutional issues with evidence collection.
Defending Against Federal Fraud Charges
Possible strategies for fighting federal fraud allegations include:
- No intent – Argue you did not intend to defraud anyone
- Good faith – Argue you believed statements/actions were truthful/legal
- Duress – Argue you were coerced into fraudulent acts
- Statute of limitations – Argue too much time has passed
- Entrapment – Argue government induced you to commit fraud
An experienced federal fraud lawyer can assess the evidence and determine the best defenses to pursue for your specific case.
Choosing a Federal Fraud Defense Lawyer
Key credentials to look for in a federal fraud defense lawyer include:
- Experience in federal courts and with federal prosecutors
- Familiarity with complex federal fraud laws and sentencing
- Ability to build creative defenses
- Track record getting federal charges dismissed pre-trial
- Willingness to take cases to trial if necessary
Don’t leave your fate to just any lawyer – find one with specific experience defending federal fraud cases.
Act Quickly if Facing Federal Fraud Charges
If questioned by federal agents, politely decline to answer substantive questions until your lawyer is present. Anything you say can be used against you.
Hiring counsel quickly allows you to get out ahead of the investigation. An attorney can request information from prosecutors, protect your rights, and start building your defense strategy right away.
Navigating federal fraud charges is complex. For the best chance at avoiding harsh penalties, contact an experienced federal fraud defense lawyer immediately.