No matter what form it takes, fraud is a serious and very complex criminal matter. You could face fraud charges because of a mix-up, an accident, or something you didn’t even realize was happening. If you’re accused of fraud involving a bank, the government, or any federal law, agencies like the FBI will look into it seriously and move quickly to investigate.
Fraud comes with serious punishments. You could spend years in prison, lose your property, pay large fines, and damage your career and reputation. For example, bankruptcy fraud can lead to fines of up to $250,000 and up to five years in prison. Federal embezzlement is even more serious, you could face a fine of up to $1 million and as much as 30 years in prison.
Depending on what happened and who was affected, you could be charged with more than one type of fraud. For example, if someone accuses you of Medicaid fraud, you might also face charges like healthcare fraud, computer fraud, wire fraud, or lying on official forms. With more than 30 years of experience, including 18 years working as a federal prosecutor, Aaron L. Wiley knows how to build a strong, practical defense for professionals and businesses accused of fraud. Talk to our federal fraud attorneys today.
Is Fraud Always a Federal Crime?
Fraud charges, which are usually prosecuted by the United States Attorney’s office, are either state and/or federal crimes. A crime is usually considered a federal crime if it breaks a United States federal law, or if it is committed across more than one state.
Whether a fraud case goes to state court or federal court depends on what happened. Most of the time, it comes down to whether the fraud breaks a federal law or tries to get money or benefits from a federal program or agency. If that’s true, or if the U.S. mail or banking system was used to commit the fraud, the case will usually be handled by a federal prosecutor.
Because the federal government oversees big financial activities like wire transfers and banking, federal fraud can include many types of white-collar crimes, such as:
- Auto registration fraud
- Bank fraud
- Computer fraud
- Healthcare fraud
- Mail fraud
- Medicaid and Medicare fraud
- Mortgage fraud
- Securities fraud
- Wire fraud
State and federal fraud cases are usually handled the same way in terms of how prosecutors try to prove them. The main difference is who investigates the case. Federal cases involve federal agencies like the IRS or the FBI. State cases are handled by the Metropolitan Police Department or other local police departments.
A federal fraud conviction usually comes with much tougher penalties than a state conviction. While every federal defense lawyer at Scrofano Law has experience in federal court, one of our main goals is to prevent your case from being moved to federal court in the first place.
Common Federal Fraud Crimes
In general, if investigators think the fraud counts as a federal crime, the federal government can step in and handle the case. Fraud becomes a federal matter in situations like these:
- The crimes target the U.S. government or one of its agencies.
- Someone tries to steal or illegally get money from government programs like Medicare or Medicaid, or there is corruption involving government officials.
- The fraud affects many people or involves a large amount of money.
If a person and at least one other person made a plan to commit fraud, they can be charged with conspiracy under federal law (Section 371). It doesn’t matter if the fraud actually happened or not. If even one person in the group takes a single step toward committing the crime, everyone who agreed to the plan can be charged with conspiracy to commit fraud.
What Penalties Are Associated With Federal Fraud Charges?
Federal fraud crimes, like state fraud crimes, can be charged as either misdemeanors or felonies. Smaller offenses might lead to probation, fines, or up to six months in a county jail. But a felony is much more serious and can mean paying thousands of dollars in fines and spending several years in prison.
Penalties for fraud charges may include:
- Fines: Federal fraud charges can be accompanied by massive fines reaching into the tens of thousands of dollars. Fines for misdemeanor fraud charges are usually smaller, sometimes less than a few thousand dollars. The exact amount of the fine will depend on what happened and how much money was involved.
- Probation: Being put on probation means you won’t have to go to spend time behind bars, but your freedoms are still restricted. You must abide by the rules established by the court, such as regularly checking in with your probation officer, maintaining gainful employment, taking drug tests, and keeping out of trouble.
- Incarceration: A misdemeanor fraud conviction can lead to up to one year in a local jail. A felony is much more serious and can result in 20 to 30 years in federal prison, depending on the law you broke and your past record. In some cases, the judge may allow a lighter option, like home confinement, instead of prison.
Talk to an Experienced Federal Fraud Attorney Today
When you’re facing federal fraud charges, you need someone who understands how high the stakes really are. Aaron L. Wiley Law, P.C. brings the experience, focus, and steady guidance you need to protect your future. Don’t wait to get the right help. Call (254) 566-3860 or fill out the contact form on our website today to speak with a federal fraud attorney who will fight for you every step of the way.