Wire and mail fraud are the most flexible tools in federal white-collar practice, which is why they appear in almost every case. 18 U.S.C. § 1343 requires a scheme to defraud and the use of interstate wires; § 1341 is the postal analogue. Because an email or a payment can supply the wire, conduct that looks like a commercial dispute can be charged federally. Where a pattern is alleged, 18 U.S.C. § 1962(c) adds RICO.
Waxman Litigation acts for companies and their boards. Seth B. Waxman spent 13 years as an Assistant United States Attorney in the District of Columbia, roughly eight of them on fraud and public corruption.
§ 1343 — wire fraud
Whoever, having devised or intending to devise any scheme or artifice to defraud , or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, transmits or causes to be transmitted by means of wire, radio, or television communication in interstate or foreign commerce, any writings, signs, signals, pictures, or sounds for the purpose of executing such scheme or artifice, shall be fined under this title or imprisoned not more than 20 years, or both. If the violation occurs in relation to, or involving any benefit authorized, transported, transmitted, transferred, disbursed, or paid in connection with, a presidentially declared major disaster or emergency (as those terms are defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5122 )), or affects a financial institution, such person shall be
18 U.S.C. § 1343
The scheme is the offense; the wire is the jurisdictional hook. That is the whole architecture.
§ 1341 — mail fraud
Whoever, having devised or intending to devise any scheme or artifice to defraud , or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, or to sell, dispose of, loan, exchange, alter, give away, distribute, supply, or furnish or procure for unlawful use any counterfeit or spurious coin, obligation, security, or other article, or anything represented to be or intimated or held out to be such counterfeit or spurious article, for the purpose of executing such scheme or artifice or attempting so to do, places in any post office or authorized depository for mail matter, any matter or thing whatever to be sent or delivered by the Postal Service, or deposits or causes to be deposited any matter or thing whatever to be sent or delivered by any private or commercial interstate carrier, or takes or receives therefrom, any such matter or thing,
18 U.S.C. § 1341
§ 1962(c) — RICO
(c) It shall be unlawful for any person employed by or associated with any enterprise engaged in, or the activities of which affect, interstate or foreign commerce, to conduct or participate, directly or indirectly, in the conduct of such enterprise ’s affairs through a pattern of racketeering activity or collection of unlawful debt. (d) It shall be unlawful for any person to conspire to violate any of the provisions of subsection (a), (b), or (c) of this section.
18 U.S.C. § 1962
RICO requires an enterprise and a pattern of racketeering activity. Its presence changes the scale of a case considerably.
Where the same facts are also a civil dispute
Much of what is charged as wire fraud began as a commercial disagreement. Where that is the position, the civil and criminal dimensions have to be handled together — see business litigation and parallel criminal and civil proceedings.
What do the mail and wire fraud statutes carry, and when does the maximum rise?
Mail and wire fraud both carry 20 years — and both rise to 30 years when the scheme affects a financial institution or relates to a federally declared disaster. The elements are near-identical; the mailing or the wire is the jurisdictional hook, not the fraud itself.
| Provision | Official heading | Maximum term |
|---|---|---|
| 18 U.S.C. § 1341 | Frauds and swindles (mail fraud) | 20 years — 30 if it affects a financial institution or relates to a federally declared disaster |
| 18 U.S.C. § 1343 | Fraud by wire, radio, or television | 20 years — 30 on the same aggravators |
| 18 U.S.C. § 1962 (penalty at § 1963) | Prohibited activities (RICO) | 20 years — life if the predicate racketeering activity carries life |
| 18 U.S.C. § 1001 | Statements or entries generally | 5 years (8 if terrorism-related) |
Frequently asked questions
Does an email make a business dispute a federal crime?
No. § 1343 requires a scheme to defraud; the wire is the jurisdictional element, not the offense.
What is a pattern under RICO?
A defined concept in the statute and case law involving an enterprise and racketeering activity. It is fact-specific and heavily litigated.
Why are these charges so common?
Because the statutes are broad and the jurisdictional element is easily satisfied in modern commerce.
Can a civil case become criminal?
The same facts can be looked at by both, which is why the two should be managed together from the start.
Who can be charged when someone else sent the message?
Whoever caused it to be sent. 18 U.S.C. § 1343 reaches a person who “transmits or causes to be transmitted” a communication in interstate commerce for the purpose of executing the scheme, and § 1341 likewise reaches one who “causes to be deposited” matter to be sent by the Postal Service or a private or commercial interstate carrier.
When does one scheme become several counts?
With each use of the wires or the mails. Both statutes are written around the communication rather than the scheme — § 1343 around a transmission made “for the purpose of executing such scheme” and § 1341 around each mailing — which is why a single course of conduct commonly produces a long indictment.
How does the government establish the interstate element?
From the routing, not from the content. Section 1343 requires transmission by wire, radio or television communication in interstate or foreign commerce, while § 1341 is satisfied by placing matter in a post office or authorized depository, or by depositing it with any private or commercial interstate carrier — a threshold that ordinary business email and shipping meet without anyone intending it.
What does a conviction cost beyond the sentence?
The proceeds. Where a violation of § 1341 or § 1343 affects a financial institution, 18 U.S.C. § 982(a)(2)(A) requires the court to order forfeiture of any property constituting, or derived from, proceeds the person obtained directly or indirectly as a result of the violation.
Sources and legal authorities
General information about federal law, not legal advice, and not a prediction of any outcome. Federal criminal exposure turns on facts this page cannot assess. If your company has been contacted by investigators or has received a subpoena, take advice before gathering documents or interviewing staff.
Related: White-Collar Defense · Securities Fraud · Bank Fraud · Parallel Criminal & Civil Proceedings · Business Litigation. Call (301) 901-3109 or use the contact page.