Federal wire fraud under 18 U.S.C. § 1343 makes it a federal crime to use interstate wires (phone, email, internet, bank transfer) as part of a scheme to defraud. The statute carries up to 20 years in federal prison per count (30 years if involving a financial institution or federal disaster relief). The government must prove (1) a scheme to defraud, (2) specific intent, (3) use of interstate wires, and (4) materiality.
Wire fraud is one of the most frequently charged federal crimes in Texas. Because nearly every modern financial transaction involves interstate wires, prosecutors use § 1343 to convert routine state-level fraud into federal cases with 20-year sentences.
What Is Federal Wire Fraud?
18 U.S.C. § 1343 criminalizes the use of interstate wires — emails, phone calls, text messages, bank transfers, internet communications — as part of a scheme to defraud. Because modern business crosses state lines electronically, wire fraud is the federal government's most flexible tool for prosecuting financial crimes.
The Four Elements
- A scheme to defraud
- Specific intent — knowingly, willfully, with intent to defraud
- Use of interstate wires
- Materiality — the false statement capable of influencing a decision
The government doesn't need to prove the scheme succeeded or caused actual loss — the crime is complete when the scheme is devised and wires are used.
Common Wire Fraud Patterns
- Business Email Compromise — fraudsters impersonate executives to redirect wires
- Investment and Securities Fraud — Ponzi schemes, pump-and-dump schemes
- Romance and Confidence Scams — online relationship scams inducing money transfers
- Healthcare Fraud — false electronic claims
- Cryptocurrency Fraud — fake tokens, exchanges, rug-pulls
Penalties
- Up to 20 years per count in federal prison
- Up to 30 years if affecting a financial institution or federal disaster relief
- Fines up to $250,000 (individuals) or $500,000 (organizations) per count — or twice the gross gain/loss
- Mandatory restitution under 18 U.S.C. § 3663A
- Forfeiture under 18 U.S.C. § 981
- Supervised release up to 5 years
Federal Sentencing Guidelines
The U.S. Sentencing Guidelines calculate fraud sentences primarily on loss amount:
- Loss under $6,500: Base offense level 7
- $40,000-$95,000: +6 levels (level 13)
- $550,000-$1,500,000: +14 levels (level 21)
- $3.5M-$9.5M: +18 levels (level 25)
- Over $550M: +30 levels
Enhancements apply for 10+ victims (+2), 50+ victims (+4), sophisticated means (+2), abuse of trust (+2), and leadership role (+2 to +4).
Defense Strategies
Lack of Intent
Wire fraud requires specific intent. Good-faith belief that representations were true defeats intent.
No Scheme to Defraud
Failed business is not wire fraud. Defense often shows legitimate operations that failed.
Victim Received Value
Under Ciminelli v. United States, 598 U.S. 306 (2023), the “right to control” theory was narrowed.
Statute of Limitations
5 years generally; 10 years for bank fraud.
Conspiracy Withdrawal
Documented withdrawal more than 5 years before indictment can be a complete defense.
What to Expect in Federal Court
Pre-Indictment
Target letters or grand jury subpoenas — retaining counsel here can sometimes prevent indictment.
Discovery
Federal wire fraud discovery is voluminous — terabytes of emails and electronic evidence. Forensic accountants often required.
Plea vs. Trial
Over 95% of federal cases plea. Cooperation under USSG § 5K1.1 may be strategically advantageous.
Frequently Asked Questions
What's the statute of limitations for wire fraud?
5 years under 18 U.S.C. § 3282, extended to 10 years if affecting a financial institution (§ 3293).
Can I be charged both state and federally?
Yes, under the dual sovereignty doctrine, though parallel prosecutions are uncommon.
Is restitution mandatory?
Yes, under 18 U.S.C. § 3663A. Courts have no discretion to waive it.
Do I need a lawyer for a target letter?
Absolutely. Decisions at this stage can prevent indictment or dramatically reduce exposure.
Will wire fraud affect my immigration status?
Almost certainly. Typically classified as an aggravated felony and crime of moral turpitude.
Speak With a Frisco Criminal Defense Attorney
If you or a loved one is facing federal wire fraud charges in Frisco, Collin County, or anywhere in the Dallas-Fort Worth metroplex, the time to act is now. L and L Law Group attorneys are available 24 hours a day, 7 days a week. Call (214) 466-1398 for a free, confidential consultation, or submit your case online and a licensed attorney will contact you directly.
This article is general information, not legal advice. Texas criminal law is complex and fact-specific — please consult a licensed Texas attorney about your particular situation. Past results do not guarantee future outcomes.