Federal Wire Fraud Defense Attorney NC

24-Day Sentence — Co-Defendants Received Years

Federal Wire Fraud Conspiracy (18 USC 1343, EDNC 2021) — Client faced federal wire fraud charges alongside co-defendants who received multi-year federal prison sentences. Through meticulous sentencing preparation, Guidelines objections, and § 3553(a) advocacy, Damon Chetson obtained a 24-day sentence. The quality of the defense work — not the nature of the charges — produced this result.

Eastern District of North Carolina · 2021

What Is Federal Wire Fraud?

Federal wire fraud under 18 USC § 1343 covers any scheme to defraud that uses electronic communications: phone calls, emails, text messages, bank wires, and internet communications. The statute's breadth and its 20-year maximum sentence make it one of the most commonly charged federal offenses.

The wire communication does not need to be central to the scheme — a single email sent in connection with a fraud scheme is sufficient. This means almost any fraud involving modern communications can be charged as federal wire fraud, regardless of whether the conduct was otherwise entirely local.

18 USC § 1343 — Elements of Wire Fraud

What the Government Must Prove

1. A scheme or artifice to defraud, or to obtain money or property by false or fraudulent pretenses
2. The defendant acted with specific intent to defraud
3. The defendant used, or caused to be used, interstate wire communications in furtherance of the scheme

18 USC § 1346 — Honest Services Fraud

Extension to "Intangible Right of Honest Services"

Limited by Skilling v. United States (2010) to bribery and kickback schemes involving public officials and fiduciaries. Overly broad honest services charges should be challenged by motion.

Wire Fraud Defense Strategies

Challenge the "scheme to defraud" — many business disputes, failed investments, and broken promises do not constitute fraud. A scheme requires a material misrepresentation with knowledge that it was false. Business failure is not wire fraud.
Contest specific intent — the government must prove you had specific intent to deceive. Good-faith belief in the truth of representations is a complete defense.
Challenge the wire communication element — the communication must be used "in furtherance of" the scheme. Incidental or routine communications not integral to the fraud may not satisfy this element.
Attack cooperating witness credibility — wire fraud cases frequently depend on co-conspirators testifying to reduce their own sentences. Cross-examining these witnesses on motives, prior inconsistent statements, and benefits received is critical trial work.
Challenge honest services theory — honest services fraud charges must allege a bribery or kickback scheme after Skilling. Overbroad honest services theories should be challenged by motion before trial.
Loss amount dispute — the Guidelines range depends heavily on calculated loss. Contesting the government's loss methodology can significantly reduce the recommended sentence.

Wire Fraud and Related Federal Charges

Mail Fraud (18 USC § 1341)

Identical elements to wire fraud but uses the U.S. mail. Often charged alongside wire fraud when both mail and electronic communications were used. Maximum 20 years.

Bank Fraud (18 USC § 1344)

Scheme to defraud a financial institution. Maximum 30 years. Frequently charged alongside wire fraud in mortgage and loan fraud cases.

Securities Fraud (18 USC § 1348)

Scheme to defraud in connection with securities. Includes insider trading, accounting fraud, investment fraud. Maximum 25 years.

RICO (18 USC § 1962)

Wire fraud is one of the most common RICO predicate acts. A pattern of wire fraud can elevate individual charges into a full RICO prosecution with 20 years per count.

Money Laundering (18 USC § 1956)

Often charged when wire fraud proceeds are transferred in financial transactions. Adds significant sentencing exposure on top of the underlying fraud charge.

Conspiracy (18 USC § 1349)

Wire fraud conspiracy carries the same penalties as the completed offense. Charged whenever two or more people agreed to engage in wire fraud — regardless of whether it succeeded.

Frequently Asked Questions

What is the difference between wire fraud and mail fraud?+

Wire fraud (18 USC § 1343) uses electronic communications — phone, email, wire transfers. Mail fraud (18 USC § 1341) uses the U.S. postal service or private carriers. Both have identical elements and carry 20-year maximums (30 years if the victim is a financial institution). They are often charged together when a scheme involved both.

Can I be charged with wire fraud for a business deal that went bad?+

Business failure and even dishonest business dealings do not automatically constitute wire fraud. The government must prove a scheme with specific intent to defraud — knowing misrepresentation of material facts to obtain money or property. Good-faith representations that turned out to be wrong, contract disputes, and failed business projections are generally not wire fraud. This is one of the most litigated boundaries in federal fraud law.

How is the loss amount calculated in a wire fraud case?+

Under USSG § 2B1.1, loss amount is the greater of actual loss or intended loss. This calculation significantly drives the Guidelines range — a $500,000 loss adds 12 levels to the offense level. Contesting the loss amount — challenging which transactions are attributable to the scheme, establishing that victims received something of value, and disputing the methodology — is one of the highest-impact arguments in wire fraud sentencing.

What is honest services fraud?+

Honest services fraud under 18 USC § 1346 extends wire fraud to deprivation of the "intangible right of honest services." After Skilling v. United States (2010), it is limited to bribery and kickback schemes involving public officials and private fiduciaries. It cannot be used for mere undisclosed self-dealing without bribery or kickbacks. Overbroad honest services charges should be challenged by motion before trial.

Federal Wire Fraud DefenseEastern District of North Carolina

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