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What separate charges may apply in wire fraud schemes?
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Wire fraud seems simple on the surface – use electronic communications to execute a scheme to defraud someone. But this deceptively straightforward crime can lead to a complex web of additional charges that carry severe penalties. Let’s break down the most common extra costs that fraudsters may face.
Conspiracy
If two or more people work together on a wire fraud plot, they can be charged with conspiracy to commit wire fraud. This applies even if not every member personally used the wires or electronic communications. Simply planning or assisting with the scheme makes you part of the conspiracy. Conspiracy charges can add 5 extra years in prison and $250,000 in fines per count. So if you scheme with others, expect to pay a heavy price[1].
Money Laundering
Most fraudsters want to enjoy their ill-gotten gains, not stash cash under their mattress. But spending or moving funds acquired illegally can lead to money laundering charges. These apply if you know the money came from illegal activities and try to conceal its source. Penalties include up to 20 years imprisonment and massive fines up to $500,000 or twice the amount laundered. Ouch! [2]
Tax Evasion
The IRS always gets its cut, even on dirty money. Failing to report income from fraud on your taxes is tax evasion, punishable by 5 years behind bars. If you go through elaborate schemes to hide assets and income using offshore accounts or shell companies, you could face up to 8 years for tax fraud. And the IRS will still make you pay back taxes, interest and steep penalties. Should’ve paid your taxes! [3]
Identity Theft
Many wire fraud schemes involve pretending to be someone else. If you use a stolen identity to open accounts, get loans, or gain something of value, that’s considered identity theft. Penalties range from 2 to 10 years in prison depending on the scope of the theft. And if you used someone’s personal information like SSN or credit card number, add 2 more years. Identity theft can seriously jack up your sentence. [4]
Speaking of Social Security numbers, using someone else’s SSN to apply for benefits or a job is Social Security fraud. This felony can land you in prison for up to 5 years. And abusing your own Social Security benefits by concealing information can also be charged as fraud, carrying up to 10 years imprisonment. Social Security fraud is all risk, no reward. [5]
Computer Crimes
If you hack accounts, break into databases or spread malware as part of your fraud, you could face computer crime charges. Penalties range from 1 to 10 years prison time depending on the nature of the offense. And if you damage or steal information worth over $5,000, add 10 to 20 years on top of that. Hacking dramatically increases penalties for wire fraud.
Racketeering
If your wire fraud is done repeatedly as part of an organized criminal operation, prosecutors may hit you with racketeering charges under RICO laws. This “nuclear option” can mean up to 20 years imprisonment per racketeering count. These charges can also lead to asset forfeiture, forcing you to surrender property obtained from the criminal activity. Racketeering charges can ruin both your freedom and your finances.
Perjury
If you lie under oath to investigators or in court about your role in a fraud scheme, you could face perjury charges. The penalty is up to 5 years imprisonment. Not to mention you destroyed your credibility as a witness in your own defense. Tell the truth from the start and you might avoid these consequences.
As you can see, wire fraud may seem simple on the surface but can trigger a cascade of additional felonies. Conspiracy, money laundering, racketeering – the charges quickly multiply. And you could end up serving decades behind bars. The hidden costs of wire fraud far exceed any potential rewards. So do yourself a favor and don’t commit fraud in the first place. The price is just too high.