Wire Fraud Defense Attorney in San Diego

Wire fraud is often listed under the federal statute of mail fraud, but they can be considered distinct crimes. While most people assume that only hardened criminals commit wire fraud by hacking into bank systems, the truth is that innocent bystanders can be charged with wire fraud for being associated with the fraudsters, or, commonly, after being hacked by someone that uses their machine to commit.

If you are charged with wire fraud, know that you are in for a very bad time. It takes time to build a wire fraud case, and by the time you’ve been charged, federal authorities are convinced that you are responsible for committing wire fraud.

Attorney Michael Cindrich has decades of experience in criminal court. He has protected clients accused of every manner of crime, and is ready to build your wire fraud case. The Law Offices of Michael E. Cindrich serve San Diego County, including the cities of Chula Vista, Oceanside, Escondido, Carlsbad, El Cajon and San Diego proper.

Contact the Law Offices of Michael E. Cindrich today for a free, confidential consultation at (619) 262-2500.

Overview of Wire Fraud Crimes in California

The Crime of Wire Fraud Under California Law
Jury Decisions in Wire Fraud Cases
Penalties for Wire Fraud in California
Examples of Wire Fraud in California
Federal Wire Fraud Laws
What Must the Jury Prove for Federal Wire Fraud?
Penalties for Federal Wire Fraud
Wire Fraud FAQ
Additional Resources

The Crime of Wire Fraud Under California Law

Wire fraud in California is governed primarily by California Penal Code Section 502, which targets fraudulent activities involving computer systems, data, or networks. The law prohibits unauthorized access, altering data, or using technology to execute schemes with the intent to defraud, extort, or cause harm.

Federal law also applies to wire fraud cases under 18 U.S.C. § 1343. This statute criminalizes using interstate or international electronic communications to carry out fraudulent schemes. For example, sending a fraudulent email to someone in another state or country can result in federal charges.

Key distinctions between state and federal laws include:

California Penal Code Section 502 focuses on unauthorized use of computer systems and networks for fraud.
18 U.S.C. § 1343 focuses on the use of communication systems, such as email or phone, across state or international boundaries.

In cases involving both state and federal violations, authorities often collaborate to determine jurisdiction. Wire fraud cases are typically prosecuted at the federal level if they involve multiple states, significant financial losses, or federal interests.

Jury Decisions in Wire Fraud Cases

When determining guilt in a wire fraud case, juries evaluate specific elements of the alleged crime:

Intent to Defraud: Under Penal Code Section 502(c)(1), the prosecution must prove that the defendant acted with the specific intent to deceive or harm another person. Accidental actions, misunderstandings, or negligence generally do not qualify as fraud.
Use of Electronic Communication: The jury must find that the defendant used electronic means, such as emails, text messages, or online systems, to carry out or attempt the fraudulent scheme. This is a critical element under both California and federal law.
Harm or Potential Harm: Although actual financial harm is not required, jurors will consider whether the defendant’s actions could have caused harm or loss to the victim. The possibility of harm is sufficient to support a charge under Penal Code Section 502(c)(1).

These elements must be proven beyond a reasonable doubt for a conviction. Juries often rely on evidence such as digital records, emails, and witness testimony to reach a verdict.

Penalties for Wire Fraud in California

Wire fraud penalties in California can be charged as a misdemeanor or felony.

Misdemeanor wire fraud, typically associated with minor harm or lower financial stakes, can lead to up to one year in county jail and fines up to $5,000.

Conversely, felony wire fraud, which often involves larger financial losses or aggravating factors, carries much harsher consequences, including prison sentences of 16 months, 2 years, or 3 years, and fines of up to $10,000.

Wire fraud conducted against elderly persons can result seriously increased charges.

Examples of Wire Fraud in California

Wire fraud cases in California can range from minor infractions to serious felonies involving substantial harm. Examples include:

An individual sends a fraudulent email claiming to offer a low-risk investment opportunity. A few victims send small amounts of money, totaling less than $950. No significant harm occurs, and the charge is prosecuted as a misdemeanor.
A phishing scam deceives hundreds of individuals into providing personal and financial information. This leads to identity theft and large-scale financial losses. The use of malicious software (classified as a “computer contaminant” under Penal Code Section 502(b)(12)) further elevates the charges to a felony.
A fraudster gains unauthorized access to a hospital’s computer systems during a ransom scheme. This disrupts critical operations and jeopardizes public safety, violating Penal Code Section 502(c)(11). The case would be charged as a serious felony.

Federal Wire Fraud Laws

Federal wire fraud is governed by 18 U.S.C. § 1343, which criminalizes schemes to defraud using interstate or international wire communications. Key aspects of the law include:

Interstate or Foreign Communications:
Any electronic communication, such as emails, phone calls, or online transactions, that crosses state or international boundaries qualifies as wire communication under federal jurisdiction.
Scheme to Defraud:
The law targets plans intended to deceive others for financial or other benefits, even if no harm occurs.
Federal Jurisdiction:
Wire fraud cases often involve federal authorities like the FBI or Department of Justice. They are prosecuted federally when they affect multiple states.

Federal wire fraud charges frequently intersect with other offenses, such as bank fraud (18 U.S.C. § 1344) or securities fraud (18 U.S.C. § 1348), depending on the specifics of the case.

What Must the Jury Prove for Federal Wire Fraud?

In federal wire fraud cases under 18 U.S.C. § 1343, the jury must determine that the prosecution has proven each of the following elements beyond a reasonable doubt:

Existence of a Scheme to Defraud:
The defendant must have devised or participated in a plan to deceive someone with the intent to gain money, property, or other benefits through false or fraudulent statements, representations, or promises.
Intent to Defraud:
The prosecution must show that the defendant acted knowingly and willfully with the purpose of deceiving another party. Honest mistakes or negligence are not sufficient.
Use of Interstate Wire Communications:
The fraudulent scheme must involve electronic communication transmitted across state or international boundaries. This includes emails, text messages, online transactions, and phone calls.
Connection to Interstate or Foreign Commerce:
Federal jurisdiction requires that the fraudulent activity involved or affected interstate or foreign commerce.

Penalties for Federal Wire Fraud

Standard Penalties for Basic Wire Fraud: Up to 20 years in federal prison. Fines are determined by the court, often related to the financial harm caused.

Enhanced Penalties for Aggravating Factors: If the fraud involves a financial institution or occurs during a federally declared disaster or emergency, defendants face fines of up to $1,000,000 and up to 30 years in federal prison.

Restitution orders are a common feature of wire fraud sentences, requiring convicted individuals to repay financial losses to victims. Probation is rare in federal wire fraud cases, especially when aggravating factors are present.

Wire Fraud FAQ

Is wire fraud a state or federal crime?
It can be prosecuted under California Penal Code Section 502 or federal law (18 U.S.C. § 1343), depending on the circumstances.
Does anyone need to lose money for it to be wire fraud?
No, financial harm is not required. The intent to defraud and use of electronic communications are sufficient.
What if I didn’t mean to commit fraud?
You must have intended to defraud a person or persons to be convicted of wire fraud.
Can I be charged for an incomplete scheme?
Yes, attempts can still result in charges under California Penal Code Section 502(c)(1) or 18 U.S.C. § 1343.
What’s the difference between misdemeanor and felony wire fraud?
Misdemeanors involve minor harm and penalties, while felonies involve significant harm, larger penalties, and longer prison terms.
Can a single email trigger wire fraud charges?
Yes, any interstate electronic communication with fraudulent intent can trigger charges.
Can wire fraud charges be dropped?
Charges may be dismissed or reduced if evidence is insufficient or intent cannot be proven.

Additional Resources

California Penal Code Section 502 – This source provides the full text of California Penal Code Section 502, which governs unauthorized access and misuse of computer systems and data. It outlines definitions, prohibited actions, penalties, and legal remedies for violations.

Beware of Wire Fraud Scams – This resource from the California Department of Justice offers tips for consumers to recognize and avoid wire fraud scams. It describes common fraud schemes, including lottery, grandparent, and government relief scams, and emphasizes that legitimate entities never request money via wire transfers. It also provides contact information for reporting suspected scams to authorities.

California Man Admits to Aiding and Abetting a Wire Fraud Scheme During COVID-19 That Cost the Federal Government Over $100,000 – This press release from the U.S. Attorney’s Office, District of Utah, details the guilty plea of a California man who assisted others in defrauding the federal government’s COVID-19 unemployment benefits program. It outlines the scheme, the charges, and upcoming sentencing. The document also provides insights into enforcement and prosecution of pandemic-related fraud.

San Diego Restaurant Owner Convicted of Tax and COVID-Relief Fraud Schemes – This press release from the U.S. Attorney’s Office, Southern District of California, reports on the conviction of a restaurant owner for wire fraud, tax evasion, and conspiracy.

Hire a Defense Attorney for Wire Fraud in San Diego | Michael Cindrich

Contact the Law Offices of Michael E. Cindrich today for a free, confidential consultation at (619) 262-2500.