What are the penalties for wire fraud convictions?

Penalties for Wire Fraud Convictions

Imprisonment

Perhaps the most serious penalty for wire fraud is imprisonment. Wire fraud carries a maximum prison sentence of 20 years under federal law. However, the actual sentence depends on the severity of the crime and the defendant’s criminal history.

Here are some factors judges consider when determining imprisonment for wire fraud:

• Loss amount – Larger loss amounts generally lead to longer sentences. A fraud scheme that causes over $500,000 in losses will face more prison time than one with under $10,000 in losses.
• Number of victims – Schemes that affected dozens or hundreds of victims are viewed as more serious.
• Sophistication – More complex, elaborate fraud schemes often lead to longer sentences.
• Criminal history – Repeat offenders face harsher sentences.
• Acceptance of responsibility – Defendants who plead guilty and show remorse may get slightly shorter sentences.
• Defendant’s age and health – Ill or elderly defendants may get less prison time.

While each case is different, here are some examples of potential prison sentences for wire fraud convictions:

• First-time offender who caused less than $10,000 in losses – 0 to 6 months in prison
• Fraud scheme with 10 victims and $100,000 in losses – Approximately 3 years in prison
• Major corporate fraud scheme affecting 1,000+ victims – Over 10 years in prison

So while the maximum is 20 years, most sentences actually fall in the 2 to 10 year range based on the case details. Overall, wire fraud defendants can expect substantial prison time in most cases.

Corporate Penalties

There are also unique penalties when corporations are convicted of wire fraud. In addition to hefty fines, companies may face debarment from government contracts, dissolution of the business, or the appointment of an independent corporate monitor.

Debarment prevents a corporation from doing business with the government for a set period. This is a major penalty, as government contracts account for significant revenue for many companies.

In rare cases, courts may force the total dissolution of a business involved in systemic, large-scale fraud. This is typically reserved for sham companies set up solely for fraudulent purposes.

More often, courts appoint an independent corporate monitor to oversee operations and prevent future misconduct. The corporation must pay for the monitor’s costs and grant them expansive oversight authority.