According to 18 USC §1343, wire fraud involves a scheme to defraud someone using false pretenses, representations, or promises transmitted through various communication methods, including wire, radio, television, or the Internet. To secure a conviction for wire fraud, the government must establish four critical elements beyond a reasonable doubt:
The penalties for wire fraud can be severe, with convictions resulting in:
The 7th Circuit has established its definition of mail and wire fraud, adhering closely to the federal statute, while also narrowing its scope in the context of an arms-length commercial negotiation.
In prosecutions for wire fraud, unless there is a statement from the accused individual admitting their intent, the government must rely on circumstantial evidence to prove the intent. To do this, prosecutors may submit statements made in communications the individual had with others, such as text messages, emails, or voice memos. Alternatively, the government can show a pattern of similar behavior in an effort to establish that a defendant’s actions weren’t merely a mistake.
The Department of Justice (DOJ) provides additional context in its Justice Manual 9-43.100 regarding the prosecution of mail and wire fraud. The policy clearly outlines that the DOJ’s focus is not on prosecuting individuals involved in isolated transactions that result in minor losses to victims. Instead, it aims to target more serious schemes that defraud a broader group of people or the public at large, characterized by a significant pattern of conduct.