Federal Fraud Charges: What to Expect and How to Respond

Federal Fraud Charges: What to Expect and How to Respond

Dealing with federal fraud charges can be scary and overwhelming. But with the right information and legal help, you can get through this. This article will walk you through what to expect if you’ve been charged with federal fraud, and give tips on how to respond. We’ll cover the legal process, potential penalties, and strategies for building your defense.

The Charges

There are many types of federal fraud crimes, but some common ones include:

• Wire fraud
• Mail fraud
• Bank fraud
• Healthcare fraud
• Tax fraud
• Identity theft

The specific charges brought against you will depend on the details of your case. The core element for any federal fraud charge is that you intentionally deceived someone in order to obtain money or property.

Federal fraud cases are usually investigated by agencies like the FBI, IRS, or Department of Justice. If they believe they have enough evidence, they will work with federal prosecutors to bring formal criminal charges against you.

Arrest and Bail

If you are arrested on federal fraud charges, you will be taken into custody by federal agents. Within 24 hours, you will go before a judge who will decide whether to release you on bail. The judge will consider factors like your criminal history, employment, community ties, and whether you are a flight risk.

If the judge grants bail, you will have to put up money or property as collateral to guarantee you show up for future court dates. Bail is usually a large sum for federal fraud crimes – anywhere from $10,000 to over $1 million depending on the case. You will also likely have to comply with conditions like surrendering your passport, restricting travel, and having no contact with co-defendants.

Federal Defenders

If you cannot afford your own attorney, the court will appoint a federal public defender to represent you. Federal defenders are experienced attorneys who specialize in federal criminal cases. They are paid by the courts and do not charge defendants.

That said, it is usually better to hire your own lawyer if you can. Federal crimes are highly complex, so the more expertise you have on your side the better. Private attorneys with extensive federal fraud experience will be better equipped to build an aggressive defense.

Grand Jury

Within 30 days of your arrest, federal prosecutors will present evidence to a grand jury to try to get an indictment. A federal grand jury consists of 16-23 citizens who review the evidence and decide if there is probable cause to formally charge you.

If the grand jury votes to indict, you will be formally arraigned and asked to enter a plea. This is your chance to plead guilty, not guilty, or no contest. Pleading not guilty means you want to fight the charges and go to trial.

Discovery

After your arraignment, the discovery phase begins. This is when your defense attorney can review the prosecution’s evidence and build your defense strategy. Some evidence you may be able to review includes:

• Witness statements
• Documents, emails, financial records
• Surveillance records
• Police reports

Your attorney will analyze the evidence to look for inconsistencies, procedural mistakes, unreliable witnesses, or anything else that could raise reasonable doubt about your guilt.

Plea Bargaining

Many federal fraud cases end in plea bargains rather than going to trial. This involves negotiating with prosecutors to plead guilty in exchange for lesser charges or a lighter sentence. For example, you may plead guilty to 1 fraud count instead of 10, or have the sentence reduced from 10 years to 5 years.

Whether to accept a plea deal depends on the strength of the evidence, potential sentence, and your willingness to admit guilt. An experienced federal fraud lawyer can advise you on the pros and cons.

Pre-Trial Motions

Before trial, your lawyer may make pre-trial motions to try to get certain evidence or charges dismissed. For example, they may argue:

• The search warrant had errors
• Your statement was coerced
• The statute of limitations expired
• The indictment is too vague

If the judge grants a pre-trial motion, it can seriously damage the prosecution’s case or even get charges dropped.

Trial

If your case goes to trial, it will typically involve a jury. For federal crimes, juries have 12 people. The trial begins with jury selection, followed by opening statements where each side lays out their case.

The prosecution will call witnesses and present evidence trying to prove you are guilty beyond a reasonable doubt. Your defense will have the opportunity to cross-examine witnesses and raise doubts about the prosecution’s version of events.

You have the right to testify in your own defense, but also the right to remain silent. Your lawyer will advise you on the strategic implications of testifying.

After all evidence is presented, the jury will deliberate and return a verdict. For a guilty verdict, all 12 jurors must agree. If convicted, your lawyer can file post-trial motions asking the judge to overturn the verdict before sentencing.

Sentencing

If you are convicted in a federal fraud trial, your punishment will depend on the specific charges and your criminal history:

• Prison: Most federal fraud crimes carry potential prison sentences of 5-30 years per count. Sentences can be served concurrently or consecutively.
• Fines: You may face fines up to $250,000 per count.
• Restitution: The court may order you to pay back money to victims.
• Probation: For lesser fraud crimes, you may get probation instead of prison.
• Forfeiture: You may have to forfeit property connected to the fraud.

Your lawyer will argue for the lowest possible sentence under federal guidelines. With a strong defense, you may be able to avoid jail time in some fraud cases.

Appeals

After sentencing, your federal fraud lawyer can appeal your conviction or sentence to a higher federal court. Appeals argue that serious legal errors were made which justify overturning or modifying the outcome.

Common appeal arguments in fraud cases include:

• Improper jury instructions
• Prosecutorial misconduct
• Insufficient evidence
• Sentencing guidelines misapplied

The appeals court will review briefs from both sides and make a ruling. While most appeals fail, some convictions do get overturned this way.

Tips for Responding to Federal Fraud Charges

Here are some key tips if you find yourself facing federal fraud accusations:

• Hire an experienced attorney – Don’t go it alone against the federal government.
• Remain silent – Anything you say can be used against you.
• Review the evidence – Look for weak spots you can exploit.
• Weigh your options – Plea bargain or go to trial?
• Testify strategically – Consider the pros and cons.
• Appeal if convicted – Look for legal errors to overturn your case.

While a federal fraud conviction can carry serious penalties, the legal process also provides opportunities to challenge the charges and evidence. With an aggressive defense focused on reasonable doubt, many fraud cases do get dismissed or plead down to lesser charges.

Don’t panic or overreact if you find yourself accused. Get experienced legal help and take it one step at a time. Understand the process, know your rights, and work methodically to build the strongest case possible.