Wire Fraud Lawyers in New York, NY

As wire fraud lawyers in New York, NY, we play a crucial role in our clients' defense by evaluating the case, preparing a strategic defense, and negotiating with the prosecution for a favorable plea deal. Each case has unique circumstances, and we strive to obtain the best possible resolution for each of our clients.

Examples of Wire Fraud

The most typical example of wire fraud involves attempts to steal a person's financial information to access bank accounts and credit cards through a scheme called “phishing.”  One way is for a scammer to send an email to a large group of people detailing a sad story requesting financial assistance. Another way is for as scammer to take the identity of another person by hacking their social media account and requesting that person’s friends to send financial assistance due to some sob story.

The more popular form of this type of phishing scam is the story of the Nigerian prince who claims that he will wire the recipient an amount of money (such as $100,000) to safekeep because he has been exiled and that he would pay the recipient $2000 once the money is transferred to a safer bank. When the victim gives the scammer his personal bank information, that scammer can gain access to the victim’s money.

Examples of high-profile cases of wire fraud:

• Elizabeth Holmes, founder of Theranos, who defrauded investors to raise money for her start-up tech company
• Lori Loughlin and Mossimo Giannuli, who donated to sham charities to secure their daughter’s college admission to USC
• Bernie Madoff, who operated a Ponzi scheme for decades and defrauded many people in the total amount of $65 billion

Definition of Wire Fraud

In the federal level, wire fraud is defined under 18 USC § 1343 as an act of scheming to defraud or for obtaining money or property by means of false or fraudulent pretenses through the use of wire, radio, or television communication in interstate or foreign commerce.

On a state level, there is no analogous state law in New York similar to the federal offense of wire fraud. It can be penalized under NY Penal Code §§ 190.60 (scheme to defraud in the second degree), 190.65 (scheme to defraud in the first degree), and 190.78 to 190.80 (identity theft), depending on the unique circumstances of each case.

When the fraud is committed using electronic communications (such as email, fax, telephone) across state or international lines, it is prosecuted under the federal offense of wire fraud.

How Wire Fraud is Investigated and Prosecuted

In New York, wire fraud can be investigated by the New York City Department of Consumer Affairs (if it involves general fraud of consumers), the New York City Police Department, and the New York State Attorney General’s Office.

On the federal level, depending on the type of fraud committed, wire fraud is investigated by several agencies such as the FBI, DOJ, IRS, and SEC. The DOJ, however, is the agency with jurisdiction to criminally prosecute federal offenses of wire fraud. SEC, on the other hand, can initiate civil prosecutions of wire fraud.

Elements of Wire Fraud

In order to prove the federal offense of wire fraud, the prosecution must show that:

1. the person voluntarily and intentionally devised or participated in a scheme to defraud another out of money
2. that the person did so with the intent to defraud
3. it was reasonably foreseeable that interstate wire communications would be used
4. interstate wire communications were in fact used

Common Defenses to Wire Fraud

Given these elements, a wire fraud defense lawyer generally employs the following defenses in a charge of wire fraud: 

No Intent to Defraud

An essential element to wire fraud is committing an act as a part of the scheme with intent to defraud. If an alleged co-conspirator was not the mastermind and had no intent to defraud, this is a strong defense against wire fraud. For example, in the case of Bernie Madoff, his low rank and file employees in his company who were part of the perpetration of the scheme to defraud could claim lack of intent to defraud because they were of the honest belief that Bernie Madoff’s clients would receive a return for their investments.

Salespersons who use slight opinionated exaggerations to attempt consumers to purchase their products over the phone cannot be considered as perpetrators of wire fraud because there is no intent to defraud.

Good Faith

Corollary to the defense of lack of intent to defraud, acting in good faith can also be considered a defense to wire fraud. Acting in good faith shows requires proof that the person acted within the requirements of state law, acted without any financial motive of depriving the victims or property, or obtained the advice of legal counsel prior to acting, or immediate rectification to the victim upon learning of the error.

Illegal Search and Seizure

When prosecutors gain evidence illegally beyond the scope of their authority, such as making searches without probable cause or obtaining search warrants in bad faith, the evidence obtained can be suppressed for being in violation of the Fourth Amendment. Without evidence, the case can be dismissed.

Substantial Assistance

When a co-conspirator to wire fraud cooperates with authorities, the prosecution may request a reduced sentence in exchange for the substantial assistance extended by the co-conspirator in identifying other perpetrators or providing details regarding the wire fraud scheme.

Materiality

When the fraudulent statement made by the perpetrator is not material to the victim’s decision to engage in the transaction, this can be a defense in an allegation of wire fraud.

Wire fraud is a complex matter which requires knowledge of federal and state law. The assistance of an experienced wire fraud lawyer is crucial in crafting a strong defense in your case. A wire fraud lawyer can evaluate your case, plan a strategic defense, provide legal guidance, negotiate with the prosecution, and represent you in court to ensure that you get the best possible outcome for your case. Should you need representation, we, at the law offices of Albert Goodwin, are here for you. We are located in New York, NY. You can call us at 212-233-1233 or send us an email at [email protected].