Comprehensive Guide to White-Collar Criminal Defense: Wire and Mail fraud

Comprehensive Guide to Wire and Mail Fraud: Laws, Defense Strategies, and Expertise from Dynamis LLP

Understanding the wire and mail fraud statutes present some of the most challenging issues in white-collar criminal law, requiring a deep understanding of nuanced legal principles and their practical application to the facts of the case These offenses, which can be aggressively prosecuted by federal authorities, carry potentially severe consequences, including significant prison terms, hefty financial penalties, and perhaps most importantly, damage to reputation. At Dynamis LLP, we specialize in defending against these charges, employing sophisticated strategies tailored to each case’s unique factual circumstance. This guide offers a detailed exploration of wire and mail fraud, including legal frameworks, defense strategies, and recent Supreme Court decisions shaping their interpretation.

What Are Wire and Mail Fraud?

Wire and mail fraud can encompass virtually any type of fraud and deception designed to obtain money or property. The key word, as discussed below, is the word “fraud.” These crimes are prosecuted under federal statutes and often involve complex, multi-layered investigations.

Elements of both crimes include:

• Scheme to Defraud: Evidence of a plan to defraud individuals or organizations of money, property, or honest services.

• Intent to Defraud: The government must establish that the defendant acted with the intent to deceive and obtain something of value unlawfully, meaning that there must be a victim in the case who suffered injury due to the deception. .

• Use of Communication Channels: Although named the “wire” and “mail” fraud statutes, the use of these communication channels does not have to be the purpose of the crimes. Rather, as long as the mails or wires are used at some point to further the crime or conspiracy, this element is satisfied.

  • Mail Fraud (18 U.S.C. §1341): Requires the use of the US Postal Service or private mail carriers.

  • Wire Fraud (18 U.S.C. §1343): Involves electronic communications, such as emails, phone calls, or online transactions.

Common examples of criminal activity charged as wire or mail fraud include:

• Investment schemes promising unrealistic returns.

• Phishing attacks targeting confidential information.

• Business email fraud redirecting financial transactions.

For individuals facing allegations of wire or mail fraud, engaging experienced legal representation early in the process is critical to a strong defense. Potential penalties include up to 20 years in prison for each count, substantial financial fines, and mandatory restitution.

Supreme Court’s Limitations on Wire and Mail Fraud Statutes

Recent Supreme Court decisions have clarified and limited the application of fraud statutes, emphasizing the need for a “victim” and the need of the Government to establish that the object of the alleged fraud was deprived of a tangible property interest (i.e. money or property). Two pivotal cases, Kelly v. United States ("Bridgegate") and Ciminelli v. United States, illustrate these developments.

1. Kelly v. United States (Bridgegate):

   • Case Background: This case centered on a politically motivated traffic disruption on the George Washington Bridge under Gov. Chris Christie. Public officials orchestrated lane closures under the pretense of a traffic study to punish a local mayor for withholding a political endorsement.

   • Supreme Court Decision: The Court ruled that while the actions involved deception, the deception did not target money or property—a requirement under federal fraud statutes. The ruling underscored that fraud statutes cannot be applied to ethical or political misconduct without having, as an object, tangible property interests such as money or property.

   • Impact: This decision narrowed the scope of prosecutable fraud, focusing exclusively on schemes with clear monetary or property implications.

   Ciminelli v. United States:

   • Case Background: This case involved a bid-rigging scheme for economic development projects. Prosecutors argued under the "right-to-control" theory that depriving victims of valuable economic information in their decision-making constituted fraud under the wire/mail fraud statutes.

   • Supreme Court Decision: The Court rejected the "right-to-control" theory, emphasizing that fraud statutes apply only to schemes targeting traditional property or money. Abstract harms, such as deprivation of decision-making authority, do not meet the statutory requirements.

   • Impact: This ruling is extremely important, and formed the backbone of Dynamis’ successful motion to dismiss the Indictment in the Atlas Trading case. This decision may, in the future, significantly curtail the government’s ability to pursue fraud cases where there is no identifiable “victim” of the alleged fraud.

     While beyond the scope of this overview, the landscape of wire/mail fraud is rapidly changing. Cases such as Ciminelli and Kelly, as well as a recent Supreme Court case that has yet to be decided (United States v. Kousisis) are gradually making clear to prosecutors that ordinary deception is insufficient to charge the mail/wire fraud. Rather, deception must have, at its object, the depriving of a traditional property interest, such as money or property, and where the person did not receive the “benefit of the bargain.”

     As an example, lies to sell a car are not wire fraud (the person got what they paid for), but lies to sell a car where the person received a horse and buggy are wire fraud (the person did not get what they paid for).

Defense Strategies for Wire and Mail Fraud

There are numerous defense strategies in a typical wire/mail fraud case, and their use depends on the facts of the case. Contact Dynamis at whitecollar@dynamisllp.com for a consultation. Common strategies include:

1. Challenging Intent: Demonstrating that the defendant’s actions lacked fraudulent intent or were based on legitimate purposes.

2. Determining whether there were any victims of the charged crimes: deception alone is not wire fraud. There must be a victim.

3. Insufficient Evidence: Questioning the weight of the evidence or its connection to the defendant.

4. Mistaken Identity: Establishing that the defendant was not the individual responsible for the alleged scheme. This is generally not a popular defense, but in some cases it can be critical.

5. Establishing Constitutional Violations: Suppressing evidence obtained through unlawful searches or other constitutional violations.

The Role of Early Legal Representation

Retaining a knowledgeable defense attorney, like the attorneys at Dynamis, early in the process can significantly influence the outcome of wire and mail fraud cases. This is because, in some instances, a skilled attorney can convince the Government not to go forward with a criminal case. Such a strategy starts early - the more time Government prosecutors spend on a case, the less likely they are to drop it. At Dynamis LLP, our legal team:

• Conducts in-depth case evaluations to identify weaknesses in the prosecution’s arguments and in the facts.

• Engages with forensic experts to analyze communications and financial records.

• Negotiates with federal prosecutors to avoid charges, seek reduced charges., or obtain case dismissals.

How Dynamis LLP Supports Clients Facing Potential Fraud Charges

Dynamis LLP’s attorneys bring a client-focused approach to every case. Our firm offers:

• Specialized Expertise: Extensive experience in white-collar criminal defense and strong relationships with Government officials. We will ensure that your side of the story gets heard.

• Tailored Strategies: Customized defense plans that address the unique aspects of each case.

• Transparent Communication: Keeping clients informed and engaged throughout the legal process, as well as on “budget”.

• Proven track record: We have demonstrated success in securing favorable outcomes.

Conclusion

Facing wire and mail fraud charges is a serious matter, but effective legal representation can protect your rights and secure a potential favorable resolution. At Dynamis LLP, we are dedicated to delivering exceptional advocacy and safeguarding our clients’ futures.

Contact Dynamis LLP today or email whitecollar@dynamisllp.comfor a consultation. Our attorneys are prepared to provide the strategic guidance and skilled defense you deserve.