Is Fraud A Federal Crime?

You might already be aware that fraud crimes are predominantly motivated by financial gains and often entail a degree of deception and dishonesty. According to the U.S. Department of Justice, “Fraud occurs when a person or business intentionally deceives another with promises of goods, services, or financial benefits that do not exist, were never intended to be provided, or were misrepresented.”

Typically, victims of fraud are left out of pocket for products or services that they never actually receive. This scenario is especially prevalent amongst schemes that target vulnerable groups such as the elderly. While fraudsters don’t discriminate based on age, race, or geographic location, they generally seek out individuals based on financial fragility, susceptibility, or distinct community profiles.

Understanding the Under-Reporting of Fraud Crimes

Despite the prevalence of fraud, many crimes go unreported. The DOJ notes, “Millions of people in the United States are victims of fraud crimes each year.” However, a significant percentage of victims choose to suffer in silence. An estimated 15 percent of those affected remain quiet due to feelings of embarrassment, guilt, or disbelief. Additionally, the emotional struggle stemming from betrayal and fear of judgment from family or friends deters many from reporting the crime to law enforcement.

Why Victims Choose Not to Report Fraud

The reasons for unreported fraud are numerous and complex. Here are a few compelling factors:

• Emotional Impact: Victims often cope with immense feelings of failure and betrayal.
• Fear of Judgment: Concerns about how others will perceive them leads many to hide their experiences.
• Sense of Futility: Some victims believe that reporting the fraud may not be worth the effort, fearing that the crime will not be solved.

The Legal Landscapes of Fraud: State vs. Federal Law

Fraudulent activities are codified offenses under both state and federal law, meaning that they can be prosecuted in both state and federal court systems. But what determines whether a fraud crime becomes a federal case? Several key factors come into play, including:

1. Monetary Loss: The total amount of money involved in the fraud.
2. Type of Fraud Committed: The specific nature of the fraud can affect jurisdiction.
3. Use of Federally Regulated Services: Activities involving the U.S. Postal Service or other federal agencies can prompt federal jurisdiction.
4. Geographic Scope: Whether the crime crossed state lines or was perpetrated across borders can elevate charges to the federal level.

Common Types of Fraud Recognized by Law

Understanding the various forms of fraud can provide clarity on what constitutes unlawful activities. Here are common types of fraud that can be prosecuted both federally and at the state level:

• Tax fraud
• Identity theft
• Check fraud
• Credit card fraud
• Immigration fraud
• Bankruptcy fraud
• Healthcare fraud
• Health insurance fraud

The Consequences of Fraud Offenses

The legal repercussions for committing fraud can vary based on whether the case is prosecuted in state or federal courts. When crimes are handled at the federal level, they generally carry steeper penalties, including:

1. Increased Fines: Convictions in federal court often involve more expensive financial penalties.
2. Longer Prison Sentences: Violators may serve substantial time compared to similar charges in state court.
3. Criminal Records: A felony conviction can lead to lifetime consequences in various aspects of life, from employment to housing.

Why You Need Legal Representation

If you’ve been charged with a fraud-related crime, it’s essential to seek experienced legal representation. The Law Offices of Nabiel C. Ahmed, a leading Criminal Defense firm located in Oakland, California, specializes in defending clients facing fraud charges at both state and federal levels.

Whether you’re involved in an ongoing investigation or are preparing for trial, having a qualified attorney can help inhibit severe penalties and protect your rights throughout the legal process.

For comprehensive legal assistance, don’t hesitate to reach out. Contact the Law Offices of Nabiel C. Ahmed at 510-576-5544 for a consultation today.