Fraud involves intentional deception to gain something of value, typically money. It includes false statements, misrepresentation or dishonest conduct intended to mislead or deceive.
The government prosecutes criminal fraud, and convictions can result in lengthy prison sentences. Civil fraud, on the other hand, is brought by the victim to recover financial losses, usually resulting in monetary compensation but not imprisonment.
Types of criminal fraud offenses
Federal fraud charges cover a broad spectrum of offenses, which usually fall under federal jurisdiction because they often involve interstate or international elements. Here are some common charges:
- Insurance fraud: Misappropriating insurance premiums or submitting false claims.
- Credit card fraud: Using someone’s credit or debit card information without authorization.
- Mail fraud: Using the U.S. Postal Service to commit fraudulent acts.
- Securities fraud: Providing false information about a company’s stock value.
- Check fraud: Creating counterfeit checks or using bad checks to withdraw funds.
- False representation: Misleading others with false information.
- Mortgage fraud: Misrepresenting information on mortgage documents.
- Wire fraud: Using electronic communications to commit fraud.
- Welfare fraud: Obtaining government benefits through false representations.
These offenses can lead to severe consequences if convicted in a federal court.
How do civil fraud cases differ?
In civil fraud proceedings, guilt is determined by a “preponderance of the evidence.” This means it is more likely than not that the alleged fraud occurred. In criminal cases, guilt must be proven “beyond a reasonable doubt.”
The penalties in civil cases usually involve monetary compensation to the victim rather than imprisonment. Courts may order restitution or damages, but the defendant will not face jail time.
Criminal fraud penalties can be severe
Punishment for federal fraud convictions can be harsh. It often includes lengthy prison sentences, substantial fines and orders for restitution.
For instance, someone convicted of securities fraud might face up to 20 years in prison and a fine of up to $5 million. Additionally, the number of victims and the financial loss involved can influence the severity of the penalties.
Given the serious nature of these charges, it is crucial to seek advice from a criminal defense lawyer with experience trying these cases in the federal justice system. A skilled attorney can help protect your legal rights and build a robust defense against these serious allegations. If you face federal fraud charges, do not delay seeking knowledgeable legal counsel.