Federal Mail and Wire Fraud

Mail fraud is an offense that involves the use of the United States Postal Service to carry out any scheme which seeks to unlawfully acquire money or property. Some common forms of mail fraud include mortgage fraud, insurance fraud, check kiting, Ponzi schemes and pyramid schemes.

Courts have generally held that three elements must be proven to convict a defendant of mail fraud. The first is participation by the defendant in a scheme to defraud. The second is that the defendant used the mail in furtherance of the scheme. Finally, it must be proven that the defendant who participated in the scheme used or caused the use of the mail. This third element is proven when the use of the mail can reasonably be foreseen even if it is not intended. The mailing also does not have to be essential to the scheme. It is enough to prove this final element if the mailing was simply incidental. A conviction for mail fraud can result in a 20 year sentence and fine. If the scheme affects the solvency of a financial institution, a conviction can result in a 30 year prison sentence and a $1,000,000 fine.

Federal law also makes it a separate crime to use a false name when engaged in mail fraud. Specifically, it is unlawful for a person to use, assume, or request to be addressed by a fictitious or false title, name, or address while engaged in mail fraud. It is also unlawful for a person to receive a letter or package addressed to a fictitious or false name or address. A person convicted under this provision can be sentenced to 5 years in prison and receive a fine.

Wire fraud relates to the use of electronic communications to carry out a scheme which seeks to unlawfully acquire money or property. Electronic communication usually refers to the use of telephone, fax, or internet. Generally, three elements must be proven in order to convict a defendant of wire fraud. First, it must be established that there was a scheme to defraud. Second, the defendant must have knowingly and willingly participated in the scheme with the intent to defraud. Third, it must be shown that interstate wire communications were used to further the scheme. Those convicted face 20 years imprisonment and a fine. If the scheme involved defrauding a financial institution, a conviction may result in a 30 year sentence and a $1,000,000 fine.

It is important to note that a victim does not need to actually be deprived of property or deceived for a conviction under the mail fraud or wire fraud statutes. Even the intent to deprive a victim of property will support conviction. It also generally does not matter if the property in question is tangible or intangible. Even an intention to deprive a person of his intangible right to control his assets can result in conviction. Each separate instance of wire communication or use of the mail in furtherance of a scheme generally constitutes a separate offense.

A criminal defense attorney has many options in defending a mail fraud or wire fraud charge. First, the government must be able to prove every element of the crime beyond a reasonable doubt. If the government cannot prove every element, there can be no conviction.

A defense attorney may also argue good faith. To convict a person of mail fraud, the government must show that the defendant participated in the scheme with knowledge of the fraud. The government will generally use circumstantial evidence to show a jury that the defendant knew of the fraud. Often the best way to counter such evidence is to introduce evidence of good faith. Good faith shows a jury that a defendant honestly believed that his or her actions were legitimate and lawful.

There are a variety of ways to demonstrate good faith. One of the most powerful forms of good faith is to show existing industry standards or conditions. Defense counsel must show that the defendant’s conduct was typical and acceptable given industry practices when the alleged scheme occurred. Evidence of good faith may also be shown when a defendant consulted an attorney or an independent business consultant before participating in the alleged scheme. Other forms of good faith may include cooperating with law enforcement or promptly acting to correct customer complaints.

Many other potential defenses are available to a person accused of mail or wire fraud. Mail and wire fraud prosecutions are usually complex and require substantial document review. If you have been charged with one of these offenses, you need an experienced criminal attorney who will defend your legal rights. For many years, our firm has successfully represented clients charged with federal mail and wire fraud. If you have been charged with mail or wire fraud, our firm may be able to help.

The information provided above is a very general summary of mail and wire fraud law at the time this text was prepared. Because this analysis is subject to change depending upon recent cases and legal developments, you should not rely on this summary as legal advice. As with any important legal question, you should always consult a lawyer experienced in federal criminal defense and licensed to practice in your jurisdiction. Our lawyers are licensed to practice in all federal and state courts in Georgia and may practice in other federal courts by special permission.