How Serious Is a Fraud Charge?
Fraud is often a felony, especially when losses are large or federal laws apply. Small-scale fraud such as a bad check can be a misdemeanor, but federal wire fraud and mail fraud carry up to 20 years in prison, and bank fraud up to 30 years. Penalties depend on the amount of loss, number of victims and criminal history, and courts usually order restitution.
Fraud means intentionally deceiving someone to obtain money, property or another benefit (Cornell LII). It can be charged under state law, federal law, or both.
Common types of fraud charges
- Credit and debit card fraud
- Check fraud and forgery
- Identity theft and account takeover
- Insurance fraud
- Health care, Medicare or Medicaid fraud
- Investment and securities fraud
- Mortgage and loan fraud
- Online, romance and business email scams
- Government benefits fraud, including unemployment and disaster aid
State charges
Under state law, the level usually depends on the dollar amount, like theft. Small amounts may be misdemeanors; larger losses are felonies, often in tiers.
Federal charges
Federal jurisdiction often applies when a scheme uses interstate wires (phone, email, internet), the mail, banks, or federal programs:
| Law | Maximum prison term |
|---|---|
| Wire fraud (18 U.S.C. 1343) | 20 years; 30 years if it affects a financial institution or involves a disaster or emergency benefit |
| Bank fraud (18 U.S.C. 1344) | 30 years |
| Access device (credit card) fraud (18 U.S.C. 1029) | Up to 10 or 15 years depending on the offense, more for repeat offenses |
Actual sentences depend heavily on the loss amount, number of victims, sophistication, role in the offense and criminal history under the federal sentencing guidelines.
Other consequences
- Restitution to victims, often required
- Forfeiture of property connected to the fraud
- Professional license loss and debarment
- Immigration consequences for non-citizens, since fraud offenses can be crimes involving moral turpitude
Common defenses
- No intent to deceive (an honest mistake or a business dispute)
- The person did not know about the scheme
- The statements were not false or not material
- Identity: someone else used your information
If you are under investigation
Do not talk to investigators, delete records, or contact possible witnesses about the case. Fraud cases are often built over months before charges; early legal advice can matter. Contact a criminal defense lawyer, particularly one with white-collar experience. If you are a victim, see what to do after identity theft.
Sources
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This article is general legal information, not legal advice, and reading it does not create an attorney-client relationship. Laws differ by state and change over time; talk to a licensed attorney in your state about your situation.