Fraud & Financial Crimes

Fraud: Laws and Penalties

Fraud involves using a lie, deception, falsehood, or dishonesty in an attempt to gain a benefit. The states and the federal governments have identified many types of fraud as criminal.

Laws on Federal Fraud

Federal law defines fraud as any intentional deception or misrepresentation used to benefit yourself or someone else. The federal government, through its prosecutors in the United States Attorneys' Office, penalizes various kinds of fraud specifically identified under federal laws.

Wire Fraud

The crime of wire fraud occurs when someone voluntarily and intentionally uses an interstate communications device (such as a telephone) as a part of any scheme to defraud another of property, or anything else of value. Wire fraud is a federal crime with serious potential consequences. (18 United States Code section 1343)

Mortgage Fraud

Mortgage fraud is often a complicated crime that can involve both mortgage lenders and borrowers. It's estimated, for example, that about 10 percent of the nation's mortgage applications contain either mistaken or intentional omissions.

Securities Fraud: Sentencing and Penalties

The term “security” is a broad term that includes numerous types of investments, such as municipal bonds, corporate stocks, bank notes, investment contracts, and more.

Federal Mail Fraud Laws

The mail fraud statute, sometimes called the federal prosecutor's best friend, covers a broad range of fraudulent schemes committed using the mail systems. Learn how the law defines and penalizes acts of mail fraud—a felony under federal law.

Money Laundering

Contrary to the common idiom, crime often pays. It can pay so much, in fact, that people with illegally acquired funds often develop complicated plans to make it appear as if the money originated from a legal source—referred to as washing or laundering money.

Laws on Bankruptcy Fraud

When people or organizations have more debts than they can manage, they sometimes file for bankruptcy in a federal bankruptcy court. When you file for bankruptcy, your creditors can no longer on their own try to sue you or collect your property to satisfy unpaid debts.

Immigration Marriage Fraud Laws and Penalties

One of the primary goals of the U.S. immigration laws is to reunite families, including married couples. However, the apparent ease of obtaining a green card (U.S. lawful permanent residence) based on marriage has led to abuse. Couples regularly enter into sham marriages, for money or other benefits, in order to obtain a U.S. green card for the immigrant.

How to Detect a Grifter, Scam Artist, or Con Artist

Scammers, con artists, and swindlers are thieves and fraudsters who use a common playbook. Learn to spot their tactics and lies and protect yourself.

Federal RICO Laws

In order to make it easier to prosecute organized crime, in 1970 Congress passed the Racketeer Influenced and Corrupt Organizations law (RICO). Under RICO, it is a federal crime to participate in or make money from racketeering (organized, illegal activity).

Federal Loan Fraud: Small Business Administration (SBA) Loans

For fraudulent acts relating to SBA and SBA-backed loan applications, prosecutors can seek criminal penalties for false statements to a federal agency, false statements in a loan application, bank fraud, wire fraud, and mail fraud, among other federal crimes.

Tax Fraud

Using fraudulent or illegal means to avoid paying taxes is generally referred to as tax fraud or tax evasion.

Laws on State Sales Tax Crimes

State sales tax crimes can occur with a business either fails to pay state sales tax or someone collects states sales taxes from customers without subsequently paying the tax to the state. In most areas both state as well as local taxes...

Is Using a Fake ID Card Identity Theft?

Using a fake ID is a crime. How serious that crime is depends on where you commit it.

The Crime of Identity Theft

Identity theft is a crime that occurs when someone uses a victim’s personal information to pose as the victim in order to obtain goods, services, or anything else of value.

Welfare Fraud

Welfare fraud carries serious penalties, including incarceration, repayment of funds, and suspension of benefits.

Welfare Eligibility and Home Visits

Strict eligibility requirements apply to public welfare programs. To determine eligibility or continued eligibility for assistance, a local social services agency might schedule a home visit. What happens during a home visit? What rights does the applicant have?

Insurance Fraud Laws and Penalties

Insurance fraud occurs when people deceive an insurance company in order to collect money to which they are not entitled.

When Your Insurance Company Won't Cover You: Fraud and Bad Faith

Although insurance fraud is commonly associated with fraud committed by people who swindle money from insurance companies, it may also be committed by the insurance companies themselves.

Unemployment Insurance Fraud

The unemployment insurance benefits program, commonly referred to as UI, is designed to provide people with an income when they are unable to find work, have been laid off, or are out of work because of factors out of their control. Each state has its own unemployment insurance benefits program that

Health Care Fraud

It's estimated that as much as 10 percent of all the money spent on health care every year is paid out on fraudulent claims. Health care fraud is a crime in which someone uses lies, deceptions, or falsehoods when filing a health care claim in an effort to make a profit or to gain some type of benefit.