The following content was taken in whole or in part at this link Federal Wire Fraud Laws – What You Need to Know
While wire fraud may be commonly thought of as a “white collar crime,” it is a serious federal crime that comes with the possibility of steep penalties for defendants. "knowingly engaged and attempted to engage, and caused and aided and abetted others in engaging, in monetary transactions affecting interstate and foreign commerce in criminally derived property of a value greater than $10,000, such property having been derived from a specified unlawful activity, that is, wire fraud, in violation of Title 18, United States Code, Section 1343
The Elements of Wire Fraud
The prosecution must prove certain elements are present in a crime in order to secure a conviction of wire fraud. While the precise list of elements that
may vary from one federal circuit court to another, they tend to be very similar to each other and can be summarized as the following:
1. A scheme to commit fraud
2. Specific intent to commit fraud
3. Use of wire, radio, or television communication to further that scheme
Examples of Wire Fraud Schemes
Offenses Related to Wire Fraud
Mail Fraud
Securities Fraud
Internet Fraud
Attempt or Conspiracy to Commit Wire Fraud
What are the Legal Defenses Against Federal Wire Fraud Charges?
Lack of Intent
Mistake of Fact
Puffery
Below are more in-depth descriptions of each of these elements and the role they play in proving that a defendant is guilty of committing wire
fraud.
1. A scheme to commit fraud
In order to make a wire fraud conviction, the prosecution must prove that the you were part of a scheme to defraud another person or party. other words, the you planned to use a false statement, promise, or misrepresentation in order obtain money or something of value from some else. While deception or dishonest means are a crucial element in a wire fraud scheme, to be convicted you do not necessarily need to tell an outrig lie. Failing to disclose certain facts in a misleading way can also be considered a form of deception.
2. Specific intent to commit fraud
If it cannot be proven that you acted knowingly or with the specific intent to defraud someone else, you cannot be convicted of wire fraud. Participation in a wire fraud scheme is not enough to secure a conviction alone, you need to have known about the scheme and participated in
with the goal of deceptively obtaining money valuables from someone else.
However, you can also be guilty of wire fraud for having caused the wire transmission that was used as part of a fraudulent scheme if that transmission was a foreseeable part of the business being conducted. The element of “specific intent to commit fraud” ensures that you cannot accidentally commit wire fraud.
Lack of Intent (mens rea)
In order to be convicted of wire fraud it must be proven that you intended to commit fraud. Intent can be a difficult thing to prove as it is
impossible to know for certain what another person is thinking. If there is insufficient evidence to prove your intent, you cannot be convicted.
Mistake of Fact
Often a wire fraud case rests on the communication of false or misleading statements. If, however, you communicated false information that you believed to be true, you cannot be convicted of knowingly and intentionally communicating false information in an attempt to defraud. For example, if you send an email to potential investors citing that the weight loss pill you sell has a 90% success rate which you believe to be true based off of
information you have been given, but it turns out the pill only has a 30% success rate, you were not intentionally communicating false information but instead had mistaken facts.
Puffery
“Puffery” is the use of exaggeration or opinionated statements used by salespeople in an attempt to make a sale. Examples of puffery might instatements like, “our weight loss pill is the best on the market!” A salesperson who makes such a statement through phone, email, television,other forms of wire communication is likely not guilty of wire fraud, as consumers will likely understand the statement to be opinionated puffey and are not relying on that information to make an informed purchase.
This is what lawyers know and you pay them to tell you. They are in the game and you are a pawn on the board until you begin the process of becoming a civilian, adept at the laws of civics.
Comments