Federal fraud prosecutions almost all rest on the same core allegation — a scheme to defraud — and differ mainly in what the scheme touched. Touch a wire and it is 18 U.S.C. § 1343; the mails, 18 U.S.C. § 1341; a bank, 18 U.S.C. § 1344; a health care benefit program, 18 U.S.C. § 1347; a security, 18 U.S.C. § 1348. The maximum terms are not equivalent: wire and mail fraud carry 20 years, health care fraud 10, securities fraud 25, and bank fraud 30 years and a fine of up to $1,000,000.
Scheme to defraud — the common element of the federal fraud statutes: a plan to obtain money or property by materially false or fraudulent pretenses, representations or promises. The government need not prove the scheme succeeded — under the wire and mail fraud statutes an attempt to execute it is enough.
Which federal fraud statute applies?
Usually more than one. Prosecutors charge the statute that matches what the alleged scheme touched, and a single course of conduct frequently supports several counts — a wire fraud count for the emails, a bank fraud count for the loan, and a money laundering count for the proceeds. That stacking is why exposure has to be assessed across the whole indictment rather than count by count.
| Charge | Statute | What the section reaches | Maximum term stated in the section |
|---|---|---|---|
| Wire fraud | 18 U.S.C. § 1343 | A scheme to defraud using interstate wire, radio or television communications | 20 years; 30 if it affects a financial institution |
| Mail fraud | 18 U.S.C. § 1341 | A scheme to defraud using the Postal Service or a private carrier | 20 years |
| Bank fraud | 18 U.S.C. § 1344 | A scheme to defraud a financial institution, or to obtain its funds by false pretenses | 30 years and/or a fine up to $1,000,000 |
| Health care fraud | 18 U.S.C. § 1347 | A scheme to defraud a health care benefit program | 10 years; 20 if it results in serious bodily injury |
| Securities & commodities fraud | 18 U.S.C. § 1348 | A scheme to defraud in connection with a security or commodity | 25 years |
| Money laundering | 18 U.S.C. § 1956 · 18 U.S.C. § 1957 | Financial transactions involving the proceeds of specified unlawful activity | See the section |
| RICO | 18 U.S.C. § 1962 | Conducting an enterprise’s affairs through a pattern of racketeering activity | See the section |
The maximums are ceilings, not predictions. In practice the loss calculation, the number of victims, and the defendant’s role usually move the sentence far more than the statutory maximum does — which is why the fight in a fraud case is often about loss amount rather than guilt.
What does the government actually have to prove?
A scheme to defraud, the defendant’s knowing participation in it, and the jurisdictional element — the wire, the mailing, the financial institution, the benefit program. The statutes are drafted broadly: 18 U.S.C. § 1343 reaches whoever, having devised or intending to devise a scheme, transmits or causes to be transmitted a communication for the purpose of executing it, and 18 U.S.C. § 1347 reaches one who knowingly and willfully executes, or attempts to execute, the scheme.
The word doing the most work is intent. Most federal fraud defenses are not about whether the transaction happened — it usually did, and the records prove it — but about whether the defendant knew the representation was false and meant to deceive. Good-faith reliance on accountants, lawyers or an approved process is frequently the center of the case.
Materiality matters too. A false statement that could not have influenced the decision is not the same as one that did, and the distinction is often where an over-charged indictment comes apart.
Why is there a money laundering count as well?
Because the fraud statutes reach how the money was obtained and the laundering statutes reach what was done with it afterwards. 18 U.S.C. § 1956 addresses financial transactions involving the proceeds of specified unlawful activity, and 18 U.S.C. § 1957 addresses monetary transactions in criminally derived property. Adding them raises exposure and, importantly, opens forfeiture of the assets.
The practical consequence is that the defense has to address the money trail from the start. Assets restrained at the outset can leave a defendant unable to fund a defense, and unwinding a restraint is its own fight. See money laundering.
Can the same conduct also be a civil case?
Routinely. A health care matter can bring a False Claims Act case alongside the criminal investigation; a securities matter can bring an SEC proceeding; a lending matter can bring a regulator and a private suit. Those civil tracks have their own discovery, and testimony given there can be used in the criminal case.
See False Claims Act defense, government contracting fraud, and parallel proceedings. Where the company found the problem itself, an internal investigation usually has to run in parallel.
What this group covers
- Health Care Fraud — billing, referrals and benefit-program allegations under § 1347
- Securities Fraud — disclosure, trading and offering cases under § 1348 and the securities laws
- Bank Fraud — lending and financial-institution allegations under § 1344
- Wire & Mail Fraud, RICO — the general-purpose fraud counts, and the pattern case built on them
- Money Laundering — what was done with the proceeds — and the forfeiture that follows
Talk to the firm about your case. Call (301) 901-3109 or use the contact page. Every matter is reviewed by Seth B. Waxman before the firm takes it on.
Quick answers
Who
Executives, professionals, companies and their boards under federal fraud investigation or indictment in the District of Columbia.
What
Defense against wire, mail, bank, health care and securities fraud, money laundering and RICO counts.
Why
Because these counts stack, and the loss calculation usually drives the sentence more than the charge itself.
When
Before charges wherever possible — the pre-indictment window is where a fraud case is most often narrowed or avoided.
Where
The U.S. District Court for the District of Columbia.
How
Attack intent and materiality, contest the loss amount, and address the money trail and forfeiture from day one.
Frequently asked questions
What is the maximum sentence for wire fraud?
18 U.S.C. § 1343 states imprisonment of not more than 20 years, rising to not more than 30 years where the violation affects a financial institution. That is a statutory ceiling — the actual sentence is driven by the Sentencing Guidelines, principally the loss amount and the defendant’s role.
How is bank fraud punished differently?
18 U.S.C. § 1344 carries a fine of not more than $1,000,000, imprisonment of not more than 30 years, or both — the highest ceiling among the common fraud counts, which is why a charge that touches a financial institution changes the shape of a case.
Why am I charged with several fraud counts for one scheme?
Because the statutes are defined by what the scheme touched. The same conduct can produce a wire fraud count for the emails, a bank fraud count for the loan, a health care fraud count for the billing, and a money laundering count for the proceeds. Exposure has to be assessed across the whole indictment.
Is health care fraud always a 10-year offense?
No. 18 U.S.C. § 1347 states a maximum of 10 years, but if the violation results in serious bodily injury the maximum rises to 20 years. The section also reaches an attempt to execute the scheme, not only a completed one.
What usually decides the outcome in a federal fraud case?
Intent and loss. The transactions themselves are usually documented and not seriously disputed; the contest is whether the defendant knew a representation was false and meant to deceive, and then what loss figure the court adopts at sentencing.
Who has to prove what, and to what standard?
The government carries everything on the criminal side, beyond reasonable doubt. On the civil side the burden is lighter but still the government’s: 31 U.S.C. § 3731(d) requires the United States to prove all essential elements of a False Claims Act cause of action, including damages, by a preponderance of the evidence.
When does the government run out of time to charge a fraud?
Five years for most offenses and ten for some. 18 U.S.C. § 3282(a) requires the indictment to be found within five years after the offense, while 18 U.S.C. § 3293 gives ten years for bank fraud under § 1344 and for mail or wire fraud under §§ 1341 and 1343 where the offense affects a financial institution.
What does a fraud conviction cost the defendant financially?
Restitution on top of any fine. 18 U.S.C. § 3663A(a)(1) requires the court, when sentencing for an offense described in subsection (c), to order restitution to the victim — and § 3663A(c)(1)(A)(ii) covers offenses against property under Title 18 “including any offense committed by fraud or deceit” where an identifiable victim suffered pecuniary loss.
Where the firm is
Waxman Litigation
5425 Wisconsin Ave Ste 600
Chevy Chase, MD 20815
(301) 901-3109 · View the office on Google Maps
Serving Washington, D.C. and Montgomery County, Maryland. Matters are heard in the Superior Court of the District of Columbia and the United States District Court for the District of Columbia.
Sources and legal authorities
- 18 U.S.C. § 1341 — Frauds and swindles (mail fraud)
- 18 U.S.C. § 1343 — Fraud by wire, radio, or television
- 18 U.S.C. § 1344 — Bank fraud
- 18 U.S.C. § 1347 — Health care fraud
- 18 U.S.C. § 1348 — Securities and commodities fraud
- 18 U.S.C. § 1956 — Laundering of monetary instruments
- 18 U.S.C. § 1957 — Monetary transactions in criminally derived property
- 18 U.S.C. § 1962 — Prohibited racketeering activities (RICO)
General information about District of Columbia and federal law, not legal advice. Which rule applies depends on the entity, the agreement and the facts. Past results do not guarantee future outcomes.
Part of Washington DC White-Collar Defense.
Talk to the firm about your case. Call (301) 901-3109 or use the contact page. Chevy Chase, Maryland — serving Washington, D.C. and the surrounding metro.