Federal fraud crimes are some of the most aggressively prosecuted offenses in the United States. These cases often involve complex investigations, extensive documentation, and significant legal consequences. If you are under investigation or have been charged with a federal fraud offense, it is critical to understand the nature of these charges, the potential penalties, and the defenses that may be available. The experienced attorneys at Burnham & Gorokhov, PLLC, based in Washington, D.C., represent individuals facing a wide range of federal fraud allegations, helping them navigate the legal system and protect their rights.
What Is Federal Fraud?
Federal fraud generally involves an intentional act to deceive another person, organization, or the government for personal or financial gain. What makes a fraud charge federal—rather than a state matter—is typically the involvement of interstate commerce, federal agencies, or federal regulatory bodies. These cases are investigated by agencies such as the FBI, IRS, SEC, or the Department of Justice, and are prosecuted in federal court.
Common Types of Federal Fraud Offenses
There are many types of fraud crimes that fall under federal jurisdiction, each governed by specific statutes and often carrying serious penalties. Among the most frequently charged are:
Wire Fraud
Wire fraud involves the use of electronic communications—such as email, phone calls, or internet transactions—to carry out a scheme to defraud. Under 18 U.S.C. § 1343, wire fraud is a felony and is often charged when the fraud crosses state lines or involves federal programs.
Mail Fraud
Mail fraud, covered by 18 U.S.C. § 1341, involves using the United States Postal Service or private mail carriers to execute a fraudulent scheme. Like wire fraud, it does not require the fraud to be successful—only that there was intent to defraud and use of the mail system.
Securities Fraud
Securities fraud involves deceptive practices in the stock or commodities markets, such as insider trading, market manipulation, or false reporting. These cases often involve investigations by the Securities and Exchange Commission (SEC) and may result in both civil and criminal proceedings.
Other types of federal fraud charges include bank fraud, healthcare fraud, tax fraud, identity theft, and PPP loan fraud, among others. Often, prosecutors may charge multiple types of fraud in the same case, depending on the facts and evidence.
Penalties for Federal Fraud Convictions
Federal fraud crimes carry severe penalties, including:
- Lengthy prison sentences, often enhanced by federal sentencing guidelines based on the amount of financial loss or number of victims involved
- Substantial fines, which can reach hundreds of thousands or even millions of dollars
- Restitution orders, requiring the defendant to repay victims
- Forfeiture of assets believed to be connected to the criminal conduct
- Supervised release, similar to probation, following any prison sentence
- Collateral consequences, including damage to reputation, loss of professional licenses, and immigration consequences for non-citizens
In many cases, federal prosecutors pursue indictments that carry mandatory minimum sentences, making early and effective legal representation essential.
Defenses to Federal Fraud Allegations
Being accused of a federal fraud crime does not mean a conviction is inevitable. Depending on the specifics of the case, a number of legal defenses may be available, including:
- Lack of intent: Fraud requires intentional deception. If the defendant lacked intent to defraud, it could serve as a valid defense.
- Insufficient evidence: The government must prove its case beyond a reasonable doubt. A lack of clear or credible evidence can undermine the prosecution’s argument.
- Good faith belief: If the accused believed their statements or actions were truthful and lawful, this may negate the intent element.
- Mistaken identity or false accusation: In some cases, individuals are wrongfully accused based on circumstantial evidence or association with others involved.
- Procedural violations: If investigators violated constitutional rights during the investigation—such as unlawful searches or coerced statements—certain evidence may be excluded from trial.
Federal fraud cases are often document-heavy and involve complex financial records, making it crucial to have a defense team that understands both the legal and technical aspects of the charges.
Experienced Federal Fraud Defense in Washington, D.C.
When facing federal fraud allegations, experience matters. The attorneys at Burnham & Gorokhov, PLLC have extensive experience defending clients in complex white-collar cases across Washington, D.C., and Northern Virginia. They understand how federal prosecutors build their cases—and how to challenge those cases with skill and precision.
If you or someone you know is under investigation or has been charged with a federal fraud crime, contact Burnham & Gorokhov today to schedule a confidential consultation. Early intervention can make a significant difference in the outcome of your case.