Federal and state laws prohibit a person from intentionally deceiving another person for personal benefit or to harm the victim. Broadly, this prohibition is known as fraud. There are many different types of fraud but they all have the elements of deception for personal gain or to cause harm to another person in common.
Being Charged with Fraud
Fraud is against both state and federal law and civil and criminal law. Certain types of fraud such as stock fraud, bank fraud, tax fraud and mail fraud are federal crimes. If you are accused of federal fraud then you will be arrested by a sheriff or marshal, who may be with a federal investigative agent. Your case will be tried by an Assistant U.S Attorney.
If you are charged with a state crime then you will likely be arrested by a state or local police officer and your case will be tried by an assistant state’s attorney or assistant district attorney. Finally, if you are accused of civil fraud then you will not be arrested but will rather be served with papers notifying you of the lawsuit.
Types of Fraud Convictions and Penalties
Below are some common types of federal and state fraud charges and the potential penalties for people who are convicted of these types of fraud:
- Stock Fraud: stock fraud is also known as securities fraud. Stock owners are given false information upon which to make investment decisions and very often stock owners lose money while those perpetrating the fraud make money. Insider trading is also a form of stock fraud. Stock fraud can be a violation of both federal and state laws. Federal penalties include financial fines and up to 20 years in prison.
- Insurance Fraud: deceiving an insurance company (or other insurer) for purposes of getting money. Insurance fraud is a crime in almost every state and is a federal crime when it relates to health insurance. Federal penalties include financial fines and prison sentences ranging from 10 years to life in prison, depending on the damages. In many instances, an investigation of insurance Fraud leads to a charge being filed several years after the actual act has occured. Be aware of Insurance Fraud Statute of Limitations to know about how much time can legally past where the act of fraud can no longer be prosecuted. Minor acts of insurance fraud can be penalized by fines, misdemeanor or felony charges, and waived jail time only with the help of a good defense attorney.
- Credit Card Fraud: any theft or deception involving the use of a credit card is credit card fraud. Credit card is a federal crime and a state crime in most states. Federal penalties include financial fines and prison terms of 10 – 20 years.
- Bank Fraud: deceiving a bank or financial institution into getting money that is not rightfully the property of the perpetrator. Bank fraud is a federal crime with financial penalties up to 1 million dollars and prison terms of up to 30 years.
- Tax Fraud: any intentional violation of the tax code. Federal tax fraud penalties include significant financial fines and prison terms of up to 5 years.
- Mail Fraud: any attempt to unlawfully obtain money or other valuables through the U.S. mail is a federal crime. Penalties can be as high as 1 million dollars and 30 years in prison.
- Check Fraud: writing a check without the funds to cover the check is a civil and criminal violation in most states. Civil penalties can include fines and financial penalties and criminal penalties can include financial penalties and prison sentences.
Help from a Criminal Defense Lawyer
Whether you have been arrested on a fraud charge or you have been the victim of fraud, you can benefit from contacting a fraud lawyer. A fraud lawyer will aggressively defend you if you have been accused of a federal or state fraud crime and advocate for your interests in a civil fraud trial. In many instances, the act of Fraud can occur several years prior to point where the investigation finally leads to an arrest and charges being filed. Be aware of Fraud Statute of Time Limitations
