What Types of Crime Are Mail Fraud and Wire Fraud?
Mail fraud and wire fraud are federal crimes because the U.S. Constitution governs all activity that crosses state lines, or utilizes federal agencies, under the Commerce Clause. The Commerce Clause is found in Article 1, § 8, clause 3 of the Constitution and grants Congress the authority to regulate commerce among several states.
Most of us engage in interstate commerce that is subject to federal laws daily and we may not even realize it. Buying items on Amazon, sending mail at the post office, sending money to friends and family through Venmo or Apple Pay. All this conduct reaches across state lines in some fashion, thereby implicating the Commerce Clause.
Additionally, the United States Postal Service (“USPS”) is a federal agency. When one uses the services provided by the USPS, any illegal conduct related to such services is subject to penalty under federal law.
What Is Mail Fraud Anyway?
First, mail fraud is a federal crime. Under 18 U.S.C. § 1341, “[w]homever, having devised or intending to devise any scheme or artifice to defraud…to be sent or delivered by the Postal Service” is guilty of mail fraud. The “Postal Service” as outlined in § 1341 includes services like UPS and FedEx and is not limited to solely the USPS.
Due to the breadth of the statute criminalizing mail fraud, the federal government has historically been able to utilize its power in various types of cases. Notable cases include Charles Ponzi (for whom the Ponzi Scheme is named) who, in 1920, utilized the Postal Service to defraud investors with unfulfilled promises of 50% returns. Another case involves Enron’s deceitful accounting practices in 1998. Cuong Nguyen ran a counterfeiting, forging, and tampering scheme utilizing the USPS.
These are just a few examples of the various types of conduct reached by the federal mail fraud statute. The federal government’s power to prosecute individuals who commit fraud using the mail is immense, and the punishments are severe.
What are the Penalties for Mail Fraud?
As outlined in 18 U.S.C. § 1341, the penalties for violating the Federal Mail Fraud Act are harsh. A conviction carries up to 20 years in prison, or a fine (up to $5 million in the case of Cuong Nguyen), or both.
Additionally, if the violation concerns “any benefit authorized, transported, transmitted, transferred, disbursed, or paid in connection with a presidentially declared major disaster or emergency” the penalty is up to “$1,000,000 or imprison[ment] not more than 30 years, or both.”
The penalties associated with mail fraud are clear and severe. The criminal defense attorneys at Berry Law are capable of helping you craft a legal defense specifically tailored to your needs. Protecting your constitutional rights and freedoms are core values at Berry Law, where experienced attorneys will fight for your rights every step of the way.
Ok…So, What About Wire Fraud? How is it different?
While mail fraud and wire fraud are certainly different, it is important to recognize that they are both federal crimes as discussed above. The Commerce Clause governs economic and other activity that reaches across state lines, allowing Congress to enact statutes penalizing certain related conduct. However, wire fraud is a more modern development that was not necessarily envisioned at the time of the adoption of the Commerce Clause.
The wire fraud was enacted “as part of the Communications Act Amendments of 1952, [and] it was always intended to mirror the provisions of the mail fraud statute.” See Doyle, C., Mail and Wire Fraud: A Brief Overview of Federal Criminal Law, July 21, 2011.
The primary differences between mail fraud and wire fraud simply come down to modernity. The wire fraud statute (18 U.S.C. § 1343) is an adaptation of the mail fraud statute with a focus on the invention of modern technology. 47 U.S.C. § 153 goes to great lengths to define the types of services and devices that are encompassed by the wire fraud statute, such as VoIP services, video conferencing services, cable services, and radio services, among many others.
What About the Penalties for Wire Fraud? Are They Different?
Simply put, no. 18 U.S.C. § 1343 outlines the same penalties for wire fraud as 18 U.S.C. § 1341 outlines for mail fraud. Anyone convicted of either statute is subject to the same potential penalties under these federal statutes.
What are Common Defenses to Mail Fraud and Wire Fraud?
One of the most common defenses to mail fraud and wire fraud is the statute of limitations. Pursuant to the Criminal Resource Manual § 968, and 18 U.S.C. § 3282, the statute of limitations for mail and wire fraud is 5 years.
Additionally, the “good faith” defense is commonly deployed as a strategic defense to defeat any charges of mail and wire fraud. As discussed in the Criminal Resource Manual § 969, a defendant is entitled to the “discussion of the defense of good faith” as an excuse to their conduct. If the defendant reasonably demonstrates that he or she undertook the conduct in good faith and that it was not fraudulent, the jury may be instructed to consider the subjective intent of the defendant.
Contact a Criminal Defense Law Attorney About Mail and Wire Fraud Federal Crimes
While the mail and wire fraud statutes are broad in nature and encompass a wide variety of conduct, the criminal defense attorneys are Berry Law will do more than just “mail it in.” They will fight alongside you to establish a defense that puts your constitutional rights first, advocate for your freedoms, and ensure all available legal remedies are made available to you.
Call (888) 682-0751 or contact an attorney online to answer any questions and begin crafting your legal defense today.
