3 Examples of Wire Fraud that Can Lead to Federal Criminal Charges

 Posted on August 25, 2026 in Fraud

Under 18 U.S.C. 1343, wire fraud is when a person uses electronic interstate communications to deceive someone else for financial purposes. It is a serious federal crime that can carry fines of up to $1,000,000 and a maximum penalty of 30 years in prison. Because of the rise in digital communications, wire fraud is becoming an increasingly common charge.

Understanding wire fraud is an important step toward defending yourself against such allegations. An Illinois federal criminal defense attorney can help you grasp what wire fraud is, the penalties for a wire fraud offense, when it becomes a federal crime, and examples of actions that constitute wire fraud.

When Does Wire Fraud Cross Into Federal Jurisdiction?

To be considered wire fraud under 18 U.S.C. 1343, the fraudulent activity must involve electronic communication. That includes radio, television, or any type of digital media available today, such as the internet. Like many crimes, wire fraud becomes a federal offense when it crosses state lines. This makes it a much more frequent charge because almost all digital communications are interstate. Even if two people in Illinois exchange messages, it can be considered interstate communication if the messages are routed through servers in another state.

It is also important to note that each communication can be charged as a separate count of wire fraud. So if the defendant sent two emails and a text message that crossed state lines, he or she may be charged with three counts of wire fraud.

Federal charges are often penalized more harshly than state level offenses. If you are convicted of a federal offense, you may be sentenced to years or even decades in prison. Federal wire fraud charges can be penalized by up to 20 years in prison and hundreds of thousands of dollars in fines. If the fraud harmed a financial institution or involves a presidentially-declared emergency, the prison sentence can be up to 30 years.

If you or a loved one were charged with wire fraud, contact a federal criminal defense lawyer for help right away.

Federal Law on Wire Fraud

According to federal law, wire fraud occurs when:

• An individual knowingly participated in a scheme to defraud another party out of money
• The individual committed the act with an intent to defraud
• It was foreseeable that interstate wire communications would be used to defraud
• Interstate wire communications were used to defraud

Wire fraud may involve interaction through phone, email, text messaging, online messaging, faxes, or another form of telecommunication.

Acts That Can Constitute Wire Fraud

Wire fraud charges are not limited to obvious internet scams. In many federal cases, the person accused of wire fraud is a business owner or someone applying for money or benefits. Wire fraud often involves otherwise ordinary bank transfers or online payments.

False Loan or Financial Applications

Someone may face wire fraud charges for knowingly providing false information to get money from a loan or other financial program.

For example, federal prosecutors have brought wire fraud cases involving business owners accused of submitting false information. Likewise, an ordinary citizen can be charged with wire fraud if he or she submits altered documents, false financial statements, or other misleading information electronically to a bank or lender.

An application submitted online, or money transferred electronically, can be enough for a federal charge if it was used to defraud someone.

Business, Employee, or Payment Fraud

The feds can also press wire fraud charges when someone is accused of using a position of trust within a company to get money illegally.

For example, an employee might be accused of:

• Creating fake invoices
• Changing payment information
• Directing company funds to an account he or she controls
• Lying to an employer about expenses or transactions

These cases don’t have to involve complicated scams. Everyday bookkeeping and communications made as part of an illegal scheme may be enough for federal prosecutors to press wire fraud charges.

Investment or Customer Fraud

Another common type of wire fraud case happens when someone makes false statements to convince another person to invest money or buy something.

For example, someone looking for investors might be accused of lying about how investment money will be used. Even exaggerating expected returns or hiding financial losses could wind up with a business being accused of material misrepresentations about a product or service.

How Can the Federal Government Prove Intent in Wire Fraud Cases?

Many failed investments, broken promises, or unsuccessful business ventures aren’t wire fraud. Federal prosecutors have to prove an intent to defraud.

The federal government usually proves intent in a wire fraud case through circumstantial evidence rather than a confession or direct admission. They build their case for intent by stacking facts that make an innocent explanation less believable.

For example, prosecutors might argue that intent is shown because the defendant:

• Made the same false statement repeatedly, rather than once by mistake
• Gave different stories to different people
• Altered invoices, account statements, contracts, or other records
• Hid where money was actually going
• Used investor or customer money for personal expenses after promising it would be used for something else
• Deleted messages, destroyed records, or told others to hide information
• Created fake entities, fake accounts, or false identities
• Received warnings from accountants, employees, banks, regulators, or business partners and continued anyway

A prosecutor would then argue that no single fact necessarily proves fraud, but the pattern does.

Contact a Chicago Wire Fraud Defense Lawyer

If you were accused of participating in a scheme or fraudulent activity using the internet or other forms of communication, you could face jail time for wire fraud. Contact Cook County federal criminal defense lawyer Hal M. Garfinkel for help defending yourself against the charges. Call the Law Offices of Hal M. Garfinkel LLC, Chicago Criminal Defense Attorney at 312-629-0669 for a free consultation.