| With consumer fraud on the rise, federal and local | | | | don't have to personally wire anything so long the |
| law enforcement agencies crack down increasingly | | | | wire communication is from the victim of the |
| on individuals and groups suspected of this crime. | | | | fraud, or even a third party, and it is done in |
| But what is consumer fraud to begin with? | | | | furtherance of the fraudulent scheme. In the past, |
| Generally, there is no universal definition of | | | | the wire fraud statute was used against |
| consumer fraud, which is usually prosecuted under | | | | businesses engaged in a ''boiler room'' operation to |
| federal mail or wire fraud statutes. | | | | solicit customers by phone from across the |
| The reason prosecutors love to use these | | | | country as well as in cases involving false |
| statutes in fraud cases is because both apply to | | | | advertisement on radio and TV. |
| ''scheme to defraud''. Obviously there is an | | | | This said, mailing or interstate or foreign wire |
| unlimited number of ways to defraud others, | | | | communication is not criminal unless it has some |
| which will guarantee that criminal defense lawyers | | | | nexus to the scheme, and is either ''incident to an |
| handling fraud and white collar crime cases will | | | | essential part of that scheme'' or in some way |
| never be hungry. | | | | furthers the scheme. |
| Actually, the law is quite liberal to the | | | | A good question is when consumer fraud will |
| requirements of proving a fraudulent scheme. The | | | | become of interest to federal prosecutors. In |
| government doesn't have to show that defendant | | | | most cases, where schemes involve only a few |
| actually swindled or tricked anyone, only that he | | | | isolated incidents and losses to the victims are |
| devised the plan with the capacity to defraud. | | | | relatively minor, cases will end up state criminal |
| The mail fraud statute is a power tool in the | | | | courts. Other cases, where defendants acted on |
| arsenal of federal prosecutors because it makes it | | | | a larger scale against general public of numerous |
| a crime to commit fraud by using mails and it's | | | | victims and where damages are substantial, will |
| hard to envision any sort of business activity | | | | likely be investigated and prosecuted by federal |
| without using mail. So, in an average scenario, if a | | | | authorities. Corporations are often targets of |
| person is engaged in fraud and uses mail to | | | | consumer fraud investigations. |
| promote the plan, the activity is controlled by the | | | | A corporation is not a physical entity and it acts |
| mail fraud statute, even where the mailing is done | | | | through its officers, employees, and agents and it |
| within one state. Moreover, you don't even have | | | | may be responsible for their criminal acts if such |
| to physically mail anything so long you cause | | | | acts are done within the scope of employment |
| someone else to use mail to promote your | | | | and with intent to benefit the corporation or |
| fraudulent scheme. One example: you defraud Mr. | | | | further the corporate business. Does participation |
| X to buy something from you and Mr. X mails | | | | by a corporation in a scheme to defraud |
| you payment. | | | | automatically make its officers criminally liable? No, |
| Another power tool is the wire fraud statute that | | | | however, to establish such liability, prosecutors will |
| makes it a crime to wire information in | | | | have to show that corporate officers consciously |
| furtherance of the scheme be an interstate or | | | | promoted the scheme. |
| foreign communication. In a similar fashion, you | | | | |