What is federal wire fraud, and what does it carry?
Under 18 U.S.C. §1343, wire fraud is devising a scheme to defraud, or to obtain money or property by false pretenses, and transmitting something by wire, radio or television in interstate or foreign commerce for the purpose of executing it. The maximum is 20 years per count. That rises to 30 years and a $1,000,000 fine where the violation affects a financial institution or relates to a presidentially declared disaster or emergency. The reason these cases look so large is that each wire transmission is its own count, so a single scheme routinely produces ten or twenty counts from the emails and transfers that carried it out.
- Three elements: a scheme to defraud, intent to defraud, and use of an interstate wire to execute it. The wire is the hook that makes it federal.
- The wire does not have to be the fraud. An ordinary email, a bank transfer or a phone call can supply it, and it does not have to contain anything false.
- Each wire is a separate count, and that is what drives the exposure and the guideline calculation.
- Conspiracy carries the same penalty as the completed offense. §1349 says so expressly, which is the opposite of the general conspiracy statute §371 with its five year cap.
- "Scheme to defraud" includes depriving someone of the intangible right of honest services under §1346.
- The limitations period doubles, from five years to ten, where the offense affects a financial institution.
- Loss amount, not the count number, usually drives the sentence. Contesting loss is often worth more than contesting guilt on one count.
Wire fraud is the most widely used statute in federal white collar prosecution, because almost every modern commercial act involves an interstate wire. That breadth is the point: a dispute that would be a contract case, or at most a state fraud charge, becomes a federal felony because the money moved by transfer and the deal was discussed by email. Peter M. Barrett has defended federal cases in the Northern District of Texas since 1994, across more than 150 jury trials, and the case review is free and confidential. This guide sets out what the government must prove and where these cases are actually fought.
The elements, and the one that does the work
- A scheme or artifice to defraud, or to obtain money or property by means of false or fraudulent pretenses, representations or promises.
- Intent to defraud. A failed business, an optimistic projection or a deal that went wrong is not fraud without it.
- Transmission by wire, radio or television in interstate or foreign commerce, by the defendant or caused by him, for the purpose of executing the scheme.
The third element is the jurisdictional one, and it is far easier to satisfy than people expect. The wire need not be false, need not be sent to the victim, and need not itself be the deceptive act. An internal email, a routine bank transfer, a card authorisation routed out of state or a phone call can all qualify, provided it was in furtherance of the scheme. The statute also reaches anyone who "causes to be transmitted", so the defendant need not have pressed send.
Why one scheme becomes twenty counts
Because the offense is complete on each transmission, the government may charge every qualifying wire separately. An indictment listing twenty counts of wire fraud usually describes one alleged scheme and twenty emails or transfers, not twenty frauds.
This matters in two directions. It inflates the apparent exposure, since twenty counts at 20 years each reads as 400 years, which is not how federal sentencing works. But it also means that losing a single count can be enough for a conviction, so a defense that answers the scheme as a whole is worth more than one that picks at individual transmissions. How the sentence is actually built is covered in the federal sentencing guide.
Penalties and the aggravating circumstances
| Circumstance | Maximum | Fine |
|---|---|---|
| Wire fraud, §1343, standard | 20 years per count | Under title 18 |
| Affects a financial institution | 30 years per count | Up to $1,000,000 |
| Relates to a presidentially declared major disaster or emergency | 30 years per count | Up to $1,000,000 |
| Mail fraud, §1341, the same structure using the mail or a private carrier | 20 years, or 30 in the same circumstances | Up to $1,000,000 where enhanced |
| Attempt or conspiracy, §1349 | Same as the completed offense | Same |
The conspiracy provision people get wrong
Most federal conspiracies are charged under 18 U.S.C. §371, which caps the penalty at five years whatever the object offense was. Fraud is different. §1349 provides that anyone who attempts or conspires to commit an offense in the fraud chapter is subject to the same penalties as those prescribed for the offense that was the object of the attempt or conspiracy.
So a wire fraud conspiracy count carries 20 years, not five, and an attempt carries the same as a completed fraud. For a peripheral participant, the difference between being charged under §371 and under §1349 is four times the statutory maximum, and it is decided by which statute the government writes into the indictment.
Honest services
§1346 provides that for this chapter, "scheme or artifice to defraud" includes a scheme or artifice to deprive another of the intangible right of honest services. That single sentence extends wire fraud beyond money and property to breaches of duty by employees and public officials. It is a narrow theory in practice and heavily litigated, and where the government relies on it the first question is always whether the conduct alleged fits within what honest services fraud still covers.
Time limits, and the doubling
The general federal limitations period in 18 U.S.C. §3282 is five years from commission of the offense. For wire and mail fraud there is an important exception: §3293 gives a ten year period for a violation of §1341 or §1343, or a conspiracy to violate them, where the offense affects a financial institution.
That is the same trigger that raises the maximum to 30 years, so whether a bank was affected does double duty: it extends how far back the government can reach and raises what the conduct carries. In a case where some of the conduct is old, it is often the first thing worth examining.
How this differs from a Texas fraud charge
Texas prosecutes fraud through its own statutes, graded by the value involved, as set out in the types of fraud guide. Federal wire fraud has no value threshold at all: the amount affects the sentence through the loss calculation, not whether an offense exists. The same facts can support both, and nothing stops a federal prosecution after a state one. Which forum a case lands in is usually decided by the agencies involved and the interstate element, not by the size of the loss. Where a wire fraud scheme is also alleged to have been run through an enterprise, a racketeering count may appear alongside it, which the RICO guide covers.
Where these cases are defended
- Intent to defraud. This is the center of most wire fraud defenses. Business failure, over-optimism, poor records and disputed contractual obligations are not fraud. The government usually builds intent from a pattern of communications, and that pattern can be read more than one way.
- Whether there was a scheme at all. A series of transactions that went badly is not automatically a scheme to defraud. What was represented, what was delivered and what was disclosed are documentary questions.
- Loss amount. In federal sentencing the loss figure typically drives the guideline range more than the number of counts. Credits against loss, amounts actually repaid, value genuinely delivered and the difference between intended and actual loss are all contestable, and the work is worth more than it sounds.
- The pre-indictment window. Wire fraud cases are usually investigated for a long time before charges. If a target letter has arrived, the most valuable period in the whole case is already running, and the target letter guide explains why.
- Which conspiracy statute is charged. §1349 against §371 is a four-fold difference in the maximum, and it is worth raising early.
- Limitations. Five years or ten depends on the financial institution question, and older conduct may be outside the period entirely.
Common questions
What is the sentence for federal wire fraud?
The statutory maximum under 18 U.S.C. §1343 is 20 years per count, rising to 30 years and a fine of up to $1,000,000 where the violation affects a financial institution or relates to a presidentially declared major disaster or emergency. Actual sentences are set under the federal sentencing guidelines, where the loss amount usually matters more than the number of counts.
Does the wire itself have to be fraudulent?
No. The transmission only has to be made for the purpose of executing the scheme. An ordinary email, a bank transfer, a card authorisation or a phone call can satisfy the element even though it contains nothing false. The statute also covers anyone who causes a transmission to be made, so the defendant does not need to have sent it personally.
Why does my indictment have so many wire fraud counts?
Because the offense is complete on each qualifying transmission, so the government can charge every email or transfer separately. Twenty counts usually describes one alleged scheme and twenty wires rather than twenty separate frauds. It inflates the headline exposure, but it also means a conviction on a single count is still a conviction, so the defense has to answer the scheme rather than the individual messages.
What is the statute of limitations on wire fraud?
Five years under the general rule in 18 U.S.C. §3282. It doubles to ten years under §3293 where the offense, or a conspiracy to commit it, affects a financial institution. That is the same trigger that raises the maximum sentence to 30 years, so the financial institution question affects both how far back the government can charge and what the conduct carries.
Is conspiracy to commit wire fraud less serious than wire fraud?
No, and this is commonly misunderstood. The general conspiracy statute §371 caps the penalty at five years, but fraud conspiracies are charged under §1349, which provides that an attempt or conspiracy carries the same penalties as the completed offense. A wire fraud conspiracy count therefore carries up to 20 years, or 30 in the enhanced circumstances.
What is honest services fraud?
18 U.S.C. §1346 provides that a scheme or artifice to defraud includes a scheme to deprive another of the intangible right of honest services. It extends wire and mail fraud beyond money and property to certain breaches of duty by employees and public officials. It is a narrow and heavily litigated theory, so where the government relies on it, whether the alleged conduct falls within what it still covers is the first question.
I have been contacted by federal agents about a business matter. What now?
Do not give an interview, and do not start gathering or deleting documents. Agents who contact a person informally are usually well into an investigation, and a false or incomplete statement is a separate federal offense under 18 U.S.C. §1001 even where the underlying conduct was lawful. Preserve everything, say you want to speak to a lawyer first, and get advice before anything else happens. The consultation is free and confidential: (214) 526-0555, answered 24/7 for emergencies.
The law this article describes, at the source.
This page is general legal information about Texas law, not legal advice about your case. Reading it does not create an attorney-client relationship. Laws change, so confirm the current rule with a licensed Texas criminal defense attorney about your specific facts. Request a free, confidential case review.