18 U.S.C. § 1341 – Mail fraud

Understanding Mail Fraud Under 18 U.S.C. § 1341

Mail fraud is a serious federal crime that can lead to severe penalties, including hefty fines and years in prison. But what exactly constitutes mail fraud, and how does the government prove it in court? This article provides a plain-English overview of mail fraud laws and defenses so you can understand your rights and options if facing charges.

What is Mail Fraud?

The federal mail fraud statute, 18 U.S.C. § 1341, makes it a crime to use the U.S. mail system to carry out any “scheme or artifice to defraud.” This includes not just using the U.S. Postal Service, but also private mail carriers like FedEx or UPS. Mail fraud basically means intentionally using the mail to commit fraud or deception to get money or property from someone else [1].

Some examples of mail fraud schemes include:

• Sending fake invoices to customers or accounts payable departments to get payments
• Mailing solicitations for donations to a fake charity
• Submitting false insurance claims through the mail
• Mailing counterfeit goods, fake diplomas/certificates, or mislabeled products
• Sending letters with false promises to investors as part of a Ponzi scheme

As you can see, mail fraud covers a wide range of schemes to intentionally deceive others for unlawful gain. The key is just using the mail system in some way to execute or further the fraudulent scheme.

Elements of Mail Fraud

For federal prosecutors to convict someone of mail fraud under 18 U.S.C. § 1341, they must prove two basic elements [2]:

1. The defendant knowingly participated in a scheme to defraud or to obtain money/property by false pretenses, representations, or promises.
2. The defendant used the mail to execute or further the fraudulent scheme.

Let’s break these down further:

Scheme to Defraud

The first element requires the government to prove the defendant engaged in a “scheme to defraud” or made some type of false statement, pretense, or promise to carry out the fraud. The scheme just has to involve some type of deception intended to deprive someone else of money or property [4].

The scheme doesn’t necessarily have to be successful in causing a loss. As long as the deception was material and could have impacted the victim’s decisions, that can still qualify as a scheme to defraud under the statute [5].

Use of the Mails

The second element requires the government to prove the defendant used the U.S. mail system in some way to carry out the scheme to defraud. This includes receiving mail, depositing mail, causing mail to be delivered, or even just using a private mail carrier like UPS or FedEx [6].

The use of mails has to be closely related to the scheme, not just incidental. For example, simply mailing a personal letter that mentions the scheme would likely not qualify. The mail has to help advance or conceal the fraud in some way.

Intent

Prosecutors also have to establish the defendant had intent to defraud. This means they knowingly participated in the scheme with awareness it was fraudulent or deceptive. An honest mistake typically wouldn’t qualify as intent to defraud under the statute [4].

Penalties for Mail Fraud

Mail fraud under 18 U.S.C. § 1341 is a felony that comes with severe penalties, including:

• Up to 20 years in federal prison
• Up to $250,000 in fines for individuals, $500,000 for organizations
• Up to 3 years supervised release
• Restitution to victims

Penalties can increase with aggravating factors like the fraud amount, number of victims, leadership role, or past criminal history. Conspiracy or attempt charges under 18 U.S.C. § 1349 can also increase sentences [4].

Defenses to Mail Fraud

Some possible defenses to mail fraud charges include:

• Lack of intent – Argue you did not act “knowingly” or there was no intent to defraud.
• No scheme to defraud – Argue your conduct did not actually involve deception, false pretenses, or fraudulent representations.
• No use of the mails – Argue the mail was not used to materially carry out the alleged fraud.
• Lack of jurisdiction – Challenge whether the conduct has a sufficient connection to the federal government to justify federal charges.
• Entrapment – Argue you were improperly induced or coerced into committing the crime by government agents.

An experienced federal criminal defense lawyer can assess the evidence and determine if any viable defenses are available to fight the charges.

Avoiding Mail Fraud Charges

Here are some tips to avoid facing mail fraud allegations:

• Never make material misrepresentations or false promises through the mail (or email) to obtain money/property.
• Do not use mail or wire communications to facilitate any type of fraudulent scheme.
• Avoid exaggerations, half-truths, or omissions that could be seen as deceptive.
• Be transparent in all business dealings and communications.
• Seek legal counsel if concerned statements or conduct could be misconstrued.

Bottom line – if you wouldn’t want a statement or action broadcast on the evening news, avoid committing it to writing in emails, letters, or other communications using the mail or private carriers.

Mail fraud is a serious matter, but an experienced federal criminal defense lawyer can advise you of your rights and defenses if facing charges under 18 U.S.C. § 1341. Be proactive in seeking qualified legal counsel to protect your interests in a federal investigation or prosecution.

References

1. 18 U.S. Code § 1341 – Frauds and swindles
2. Federal Mail Fraud Defense Lawyers
3. Federal Mail Fraud Statutes & Penalties
4. Federal Mail/Wire Fraud Laws – 18 USC 1341 & 1343
5. Mail Fraud – 18 U.S.C. § 1341