What Do Federal Wire Fraud and Mail Fraud Charges Mean in North Carolina?

When people think of federal white collar crimes, wire fraud and mail fraud are often at the center of the investigation. These laws are incredibly broad and serve as the foundation for prosecuting a huge range of schemes designed to trick people out of money or property using communication tools we use every day – the mail, phones, email, and the internet.

If you are facing federal investigation or charges involving wire fraud or mail fraud in Greensboro, Winston-Salem, High Point, Burlington, or anywhere in North Carolina, you might be surprised at how easily certain actions can fall under these powerful federal statutes. Because these charges are frequently used and carry significant penalties, understanding what they involve is critical. Here at Huggins Law Firm, our team has extensive experience defending clients against complex Criminal Law charges in both state and federal courts, including various types of fraud. We know how federal prosecutors build these cases and how to effectively challenge them.This page focuses on federal Wire Fraud and Mail Fraud. For information on other federal offenses, please see our main guide: Understanding Federal Crimes in North Carolina.

What Are the Basics of Federal Mail Fraud (18 U.S.C. § 1341)?

The federal Mail Fraud statute (18 U.S.C. § 1341) makes it a crime to use the U.S. Mail (or private carriers like FedEx/UPS) as part of a scheme or plan to defraud someone of money or property.

To convict someone of mail fraud, the Assistant United States Attorney (AUSA) must prove these key elements beyond a reasonable doubt:

1. A Scheme to Defraud: That you knowingly devised or participated in a plan intended to deceive someone and obtain money or property through false or fraudulent pretenses, representations, or promises. The scheme doesn’t have to succeed, only that you intended it to.
2. Intent to Defraud: That you acted with the specific intent to cheat or deceive the victim. An honest mistake or misunderstanding is not enough.
3. Materiality: That the false statement or representation was “material” – meaning it was capable of influencing the victim’s decision.

Use of the Mail: That you used the U.S. Postal Service or a private interstate commercial carrier (like FedEx, UPS) to help carry out the scheme. This is the element that makes the crime federal. Even a single letter mailed as part of the plan (like mailing a fraudulent invoice, sending a fake investment prospectus, or receiving a payment by mail) can be enough to trigger the statute. The mailing doesn’t even have to contain the false statement itself, as long as it was an essential part of executing the overall scheme.

What Are the Basics of Federal Wire Fraud (18 U.S.C. § 1343)?

The federal Wire Fraud statute (18 U.S.C. § 1343) is very similar to mail fraud, but instead of using the mail, it applies to schemes that use interstate wire communications.

The elements the prosecutor must prove are almost identical:

1. A Scheme to Defraud: Same as mail fraud – a plan to deceive for money/property.
2. Intent to Defraud: Same as mail fraud – specific intent to cheat.
3. Materiality: Same as mail fraud – the falsehood was important.
4. Use of Interstate Wires: That you used interstate wire communications (like phone calls, emails, text messages, internet transmissions, faxes, wire transfers of money) to help carry out the fraudulent scheme. Because almost all digital communication crosses state lines instantly, this element is often very easy for the government to prove in modern fraud cases involving computers or phones.

Why are these laws so broad? Mail and wire fraud statutes are incredibly versatile tools for federal prosecutors. They can be applied to a vast array of activities, including:

• Business fraud (e.g., lying to investors, falsifying financial statements sent via email).
• Telemarketing scams.
• Internet phishing schemes.
• Fraudulent online sales or auctions.
• Healthcare fraud (e.g., submitting false bills electronically).
• Identity theft schemes conducted online or by phone.
• Certain types of tax fraud involving electronic filings or mailed documents.

Essentially, any fraudulent scheme that involves using the mail or interstate electronic communications can potentially be charged as mail or wire fraud. Finding the best defense strategy requires understanding the specific scheme alleged.

What Are the Penalties for Mail Fraud and Wire Fraud?

Convictions for federal mail fraud and wire fraud carry severe penalties:

• Prison Time: Each count of mail or wire fraud is generally punishable by up to 20 years in federal prison.
• Increased Penalties: If the fraud affects a financial institution or relates to a major disaster or emergency, the maximum penalty increases to up to 30 years per count.
• Significant Fines: Fines can be substantial, often up to $250,000 for individuals or $500,000 for organizations per count, or even higher depending on the financial gain or loss involved.
• Restitution: Mandatory repayment of the full amount of loss suffered by the victims.
• Forfeiture: The government may seek to forfeit (take away) any property or proceeds obtained through the fraudulent scheme.
• Permanent Felony Record: Makes future employment, particularly in finance or positions of trust, extremely difficult.

Important Note on “Counts”: Prosecutors often charge each use of the mail or wires as a separate count. For example, if a fraudulent scheme involved sending 10 emails and 5 letters, the defendant could potentially face 15 separate counts, with penalties applied to each (though sentences often run concurrently). This stacking of counts can dramatically increase the potential prison time calculated under the U.S. Sentencing Guidelines.A Less-Known Statistic: While major corporate frauds capture headlines, a vast amount of wire fraud involves Business Email Compromise (BEC) and Email Account Compromise (EAC) scams. These often target small-to-medium-sized businesses. The FBI’s Internet Crime Complaint Center (IC3) reports that BEC/EAC scams consistently cause billions of dollars in reported losses each year, often far exceeding losses from things like ransomware. ([Source: FBI IC3 Annual Reports]). These scams might involve tricking an employee into wiring company funds to a fraudulent account or diverting payroll direct deposits – seemingly simple emails that constitute federal wire fraud.

How Can a Lawyer Defend Against Federal Wire or Mail Fraud Charges in NC?

Being indicted for wire or mail fraud feels overwhelming, given the resources of the federal government. However, these are complex charges with specific elements the prosecution must prove, and an experienced federal criminal defense lawyer can build a strong defense. Strategies often include:

1. Challenging the “Scheme to Defraud”: Was there actually a plan to deceive? Perhaps the business plan was legitimate but failed for other reasons? Maybe the statements made were opinions or puffery, not factual misrepresentations?
2. Lack of Intent: This is often the most critical defense. Can the government prove beyond a reasonable doubt that you intended to cheat someone? Honest mistakes, negligence, or bad business judgment generally do not meet the high standard for criminal fraudulent intent. Your lawyer will gather evidence showing your good faith or lack of deceptive purpose.
3. Statement/Representation Not Material: Was the alleged false statement actually important enough to influence the victim’s decision? If the victim would have acted the same way even without the alleged falsehood, the materiality element might be missing.
4. No Use of Mail/Wires (or Not in Furtherance): While often easy for the government to prove, was the specific use of mail or wires actually part of executing the alleged scheme? In some rare cases, the communication might be unrelated or occur after the scheme was completed.
5. Authorization or Good Faith: Did you believe you were authorized to act? Did you rely in good faith on information provided by others that turned out to be false?
6. Illegal Search/Seizure/Interrogation: If federal agents obtained evidence (emails, documents, statements) in violation of your Fourth or Fifth Amendment rights, your lawyer will file motions to suppress that evidence.
7. Negotiation: Given the complexity and potential penalties, negotiating a plea agreement with the AUSA for reduced charges or a favorable sentencing recommendation is a common strategy. A lawyer familiar with the prosecutors in the Middle District of North Carolina (covering Greensboro, Winston-Salem, etc.) is crucial for effective negotiation.

Defending federal fraud cases requires meticulous review of documents, understanding complex financial transactions, and challenging the government’s interpretation of events and intent. Finding a lawyer “near me” with specific federal white-collar experience is key.

Key Takeaways for North Carolina Federal Wire & Mail Fraud Charges

• Involves using interstate wires (email, phone, internet) or mail/carriers as part of a scheme to defraud someone of money/property.
• Requires proof of specific intent to defraud.
• Laws are very broad and used in many types of fraud cases (business, internet, healthcare, etc.).
• Penalties are severe: up to 20 or 30 years per count, large fines, restitution.
• Each use of mail/wires can be a separate count.
• Defenses often focus on lack of intent, lack of materiality, or challenging the alleged scheme itself.
• Never talk to federal agents (FBI, Postal Inspectors, etc.) without a lawyer.
• Hire a lawyer with specific experience in federal court and federal fraud defense immediately if you are under investigation.

Federal wire fraud and mail fraud charges are complex and carry severe penalties. If you are under investigation or have been indicted in Greensboro, Winston-Salem, or anywhere in the Middle District of North Carolina, protect yourself by securing experienced legal counsel immediately. The Criminal Law team at Huggins Law Firm understands federal fraud prosecutions. Contact us today for a confidential consultation.