It’s a federal crime to use the U.S. mail, or any private delivery service, in connection with a scheme to intentionally defraud others of money or property. For example, if a company sells fake drugs or counterfeit items through the mail, that’s federal mail fraud. (18 U.S. Code section 1341.)
What Constitutes Mail Fraud
The connection can be less obvious, however, and mail fraud can apply to almost any scheme that uses the mail in any way. For example, a business that sends a letter to a suspicious customer after a fraudulent sale, intended to string the customer along and discourage a complaint to the authorities, could also be mail fraud. So could using a fictitious name or address as the return address on any type of mail.
Mail fraud charges can apply to items sent through private mail or delivery companies such as UPS or FedEx, not just the United States Postal Service. And items do not have to be mailed across state lines—mail sent within one state can be the basis for federal mail fraud charges.
Both the FBI and the U.S. Postal Service may investigate allegations of mail fraud. Federal mail fraud charges are often added on to other state or federal charges for white-collar crimes. For example, someone charged with state tax evasion might be charged with federal mail fraud because the dishonest tax returns were filed by mail. But the documents that are mailed don’t necessarily have to be fraudulent themselves. They might not contain any misrepresentations, but if someone is using them to further a scheme to defraud, mail fraud charges could still be brought.
Mail fraud can also be the basis of a prosecution under RICO, the Racketeer Influenced and Corrupt Organizations Act. (18 U.S. Code section 1962.)
A related crime is wire fraud. It may involve money wired to a someone as part of a scheme to defraud, or more modern technology. For example, there has been a rash of thefts involving thieves who hack into (or trick someone into granting access to) the account of an employee who has online access to the company’s bank account. The attackers then install software that allows them to divert funds from the company account. Some schemes have funneled large amounts of money into offshore accounts. Wire fraud is also a federal offense. (18 U.S. Code section 1343.)
Penalties for Federal Mail Fraud
Penalties for mail fraud can be severe.
Jail time. The maximum sentence for a mail fraud conviction is 20 years, which can be imposed per mailing. But if a financial institution was involved or the fraud involves any benefits associated with a presidentially declared major disaster or emergency, the maximum sentence is 30 years in prison.
Fines. Offenders can be fined up to $1 million for violations that involve financial institutions for benefits related to federal disaster relief.
Hiring an Attorney for Help With Federal Mail Fraud Charges
Anyone facing federal mail fraud charges is almost certainly charged with other serious state or federal crimes as well. Advice from a criminal defense attorney who has experience with these kinds of charges is essential.
