Mail
Fraud and Wire Fraud statute parallel each other with
the exception that in the case of wire fraud the use
of an interstate telephone call or electronic communication
is involved. The
object of wire fraud, like other forms of white
collar fraud, is to accomplish the desired result
by concealment, deception, trickery, or dishonesty.
The separating factor for wire fraud is the use
of facilitating communications including but not
limited to the internet, television, radio.
The
interpretation of the wire fraud statute finds that
four elements must be present. To be convicted of
wire fraud an Assistant United States Attorney (AUSA)
must prove beyond reasonable doubt when presented
to a jury or judge:
1.
That the defendant knowingly committed a scheme
to defraud;
2. That the defendant acted with specific intent
to defraud;
3. That the defendant used interstate wire communications
facilities or caused by another person to use interstate
wire communications facilities for the purpose of
carrying out the scheme; and
4. That the scheme to defraud employed false material
representations.
Court
Interpretation of Wire Fraud Violations
A.
In a fraud scheme, circumstantial evidence, in addition
to testimony was sufficient evidence to permit inference
that interstate communication was made. United States
v. Martin, 611 F.2d 801 (10th Cir. 1979).
B. In a political finance scheme, there was evidence
that interstate faxes sent by campaign workers on
behalf of the campaign supported the finding that
politician “caused” use of wires. Therefore
the co-conspirator could be deemed jointly responsible
for them. United States v. Zichettello, 208 F.3d
72 (2d Cir. 2000).
C. An indictment that charged the defendants with
wire fraud was not dismissed. It was alleged that
the defendants, without permission, transmitted
copyrighted computer files by wire that contained
confidential code with the intent to gain benefits
and rights that were lawfully reserved to the owner
of the files. Even though intangible, confidential
business information is “property” that
is protected by mail and wire fraud statutes. The
existence of copyright does not preclude the application
of wire fraud statute. United States v. Wang, 898
F. Supp. 758 (Dist. Co. 1995).
Possible
Punishment
If convicted of a felony, one may be imprisoned
up to 20 years along with $250,000 in fines. If
the conviction involves a financial institution,
the term of imprisonment can be up to 30 years with
fines up to $1,000,000. The punishment is based
on number of transactions. So for example, if 6
faxes were sent and 8 telephone calls were made
the above punishment would be multiplied by 14.
Many
times the defendant will be charged not only with
wire fraud, but also with mail fraud, money laundering,
securities fraud, bank fraud, public corruption,
or RICO crimes and conspiracy to commit the aforementioned
crimes. It should be noted that parole in the Federal
System has been abolished since 1987 and that removal
of the conviction from public records (expungement)
is not available.
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