Technological advancements are beneficial for mankind; it makes our lives better and easier. But on the other hand, it is also making it increasingly easier to commit crimes of fraud because it gives everyone the accessibility to information needed to commit the fraud. This is one of the leading contributors to the increase in fraud crimes.
Fraud is a serious matter that includes criminal or wrongful action intended for financial gain. They are usually non-violent and money-driven crimes that are recognized as white-collar crimes. An example of this is the loss of investment money in the GWG Holdings Inc. L Bonds case. Only fraud attorneys can give you guidance when you are a victim or facing a fraud charge.
There are various forms of fraud depending upon what type of action was taken and thus have different penalties and outcomes. Being charged with fraud charges is a serious allegation and can be frightening. So it’s crucial to contact a knowledgeable and experienced fraud attorney to build a strong case with the outcomes in your favor.
Fraud attorneys will be able to defend your charges, including bank fraud, wire fraud, mail fraud, telemarketing fraud, and bank fraud, among others. So let’s look at these frauds in detail.
What are the different types of frauds?
There are three general classifications when it comes to fraudulent activity:
- Consumer fraud
- Employee fraud
- Fraud against a business or government institution
For instance, if an employee fakes and falsifies about his injury in the workplace in order to benefit from worker’s compensation, it is a type of employee fraud. So as seen in this case, actions based on fraud include lying, distorting facts, and falsifying with fraudulent intent for personal financial gain is a fraud crime. The case can become a B class felony if the finances from fraudulent activity exceed 2000 dollars, and the penalty for this will include 20 years behind bars and fines of up to 10,000 dollars.
Fraud includes several types of actions that can lead to penalties. Even if a prosecutor is not holding criminal charges against the individual, the victim is eligible to file a civil lawsuit.
Some individuals do not even know that their actions are criminal offenses. So it’s crucial that you consult with a qualified and experienced fraud attorney who can help you understand the reason for the charges. Because if there are fraud charges against you, then not only will you be facing penalties, but you may also lose your job, reputation, and family.
Since fraud is a serious matter, you can only defend against your fraud charges by contacting a fraud attorney who has your best interest in mind and can provide an adequate defense to bring promising outcomes.
Here are some common types of fraud charges:
1) Wire fraud
Wire fraud is defined as conceiving, plotting, or having every intention to come up with a scheme to swindle other people’s money or property by using false promises, representations, or pretenses through the means of “wires,” also known as electronic communications.
This type of fraud usually involves interstates, so most wire frauds come under federal crimes. And the penalties for this crime include up to years behind bars and/or heavy fines. Other similar types of federal fraud crimes include:
- False loan applications
- Check fraud
- Incorrect advertisements
- Falsifying sales transaction
- Bond and investment schemes
- Deceitful insurance claims
2) Mail fraud
Mail fraud constitutes the use of deceit, deception, or scheme to defraud people or use false pretenses to swindle money or property through the mail system. If the government is able to establish that the violator used the mail system with the intent to execute the defrauding scheme, then you can be strictly held accountable. The penalties for this are strict, and individuals can end up behind bars for up to 5 years and be fined.
3) Bank fraud
Bank fraud, like wire fraud, also involves using information or wiring money in order to defraud customers, individuals, or businesses. The consequences of such fraud are very serious, including imprisonment of up to 30 years and /or heavy fines of up to 1,000,000 dollars. The most common bank fraud charges include:
- Forging loan documents
- Misreporting an incorrect statement to a loan officer or bank personnel
- Forging signatures on checks and documents
- Check fraud
- ATM fraud
- Embezzlement – this occurs when an individual entrusted by someone else to handle money or property uses this to embezzle funds. For instance, a politician uses campaign money for their personal use, or an employee moving company money into their personal bank account is a form of embezzled money.
4) Telemarketing fraud
This type of fraud involves the use of the telephone to defraud and deceive other people. This includes all types of schemes and plans that a scammer employs to swindle money or goods from a person in a deceitful way through the telephone system.
Telemarketing fraud becomes federal when it occurs across states. When convicted, the individual involved in telemarketing fraud will face five years behind bars and ten years if the victim is older than 55 years.
The convict may also have to pay fines and compensation for the damages to the victim. Some of the most common telemarketing fraud include:
- Magazine subscription scam
- Credit card scams
- Scam of office supply
- Pyramid schemes
- Fraud of advance fee payment
- Ponzi schemes – this is named after a con-man named Charles Ponzi, who made 250,000 dollars per day in 1920 by using mail coupons. So a Ponzi scheme is an investment scam where individuals are falsely promised high profits and returns.
Individuals or organizations in this scheme need to bring in new investors in order to pay the previous ones. This scheme doesn’t work if there are no new customers since the investment is then not possible.
5) Bankruptcy fraud
Bankruptcy is when an individual is unable to repay the debts owed to their creditors. It is used to help such persons to take action to repay debt or to discard the debt and start a new one.
There are different types of bankruptcy that an individual or organization facing huge amounts of debt can take, including the most common chapter 7 and chapter 13. And so, the fraud of bankruptcy is the disrespect of this system for personal advantage. The most common types of bankruptcy fraud include:
Chapter 7 bankruptcy fraud
This is the most common type of bankruptcy fraud. Chapter 7 bankruptcy allows an individual to petition with the court to discard or discharge the debt. After this, the debtor needs to give their assets or property to a bankruptcy trustee or sell it to repay money to creditors. The debtor can withhold some properties if they want, and then creditors cannot eye them.
Chapter 13 bankruptcy fraud
This is the second most common type of bankruptcy fraud. In this type of bankruptcy, the court allows the debtor to plan repayment to the creditors from their future income. So the individual does not have to surrender any of the assets or properties; instead, pay with future income over a period of 3 to 5 years.
So how does bankruptcy fraud occurs?
- Bankruptcy fraud occurs when an individual hides assets or properties by intentionally not listing all the assets knowing the creditor cannot make covert these to cash.
- Bankruptcy fraud occurs when an individual files for bankruptcy in more than one state using false names and forged information or real name and correct information, or both. They also hide some of the assets so creditors will not seize them.
- Bankruptcy fraud can also occur when someone impersonates a financial advisor and quickly prepares and files bankruptcy in the name of the victim of the petition, usually unknown to the victim.
This white-collar felony leads to serious consequences where imprisonment for up to 5 years and/or fines of up to 250,000 dollars.
What factors increase the charges of fraud?
Individuals who are involved in fraud that involves benefiting from some type of government program that is aimed at helping the poor and making false claims against the government institution over a period of time, then they can expect to get more aggravated charges against them and much more serious punishments.
So if this kind of fraud continues for a long period of time where the loss to the government institution is in 6 figures, and the government can show this loss through bank records and other records that this money was used for personal reasons like vacations and expensive gifts, then the individuals will be dealt very strictly.
Defrauding a government entity and that too for an extended period of time is a much more serious matter than some individuals involved in defrauding their employer for some money one time due to an emergency. Both such situations are fraud crimes and thus unlawful; however, the facts and punishments vary significantly.
In the case of defrauding a government entity, the individual will be facing some time in prison, but in the other case, the penalties will be sounder after taking into account the criminal history of the individual and other such factors.
A reasonable verdict would be to repay the swindled amount and be placed on probation so that the individual does not engage in unlawful actions again. But no matter what the situation, if you have fraud charges against you, then you will need the help of experienced fraud attorneys at Erez Law PLLC.
What are the chances of a plea deal?
Since fraud does not fall under a violent crime and is considered a white-collar crime, usually, there are no such situations as other crimes where the court will want to give out the maximum punishment they can. So individuals facing fraud charges can almost always get a plea deal.
This is because the main focus of the government is to get the scammer to repay the amount they swindled. In the cases of fraud, the court’s primary goal is to ensure that the victim gets repaid the amount they lost and, along with that, to give out appropriate and reasonable punishment.
So mostly, an individual charged with fraud can expect the court to allow a plea agreement that does not involve any punishment if only the charged individual agrees to repay all the money that was taken from the victim.
Why do you need a fraud attorney?
Fraud cases are complicated, and the laws surrounding them are complex. So if you are charged with fraud, the authority who has charged you will use everything in their power to investigate and prosecute you for the fraud. Being charged with fraud is a serious allegation, which could bring serious penalties.
Even if you are not convicted, being associated with fraud charges can bring a downfall to your personal, legal, and professional life, and this stigma can follow you throughout your life. So your life and your future depend on the fact that you hire an experienced and qualified fraud attorney. Anyone who is charged with this crime needs to contact and consult with an attorney as soon as possible.
This will ensure that their rights are protected and that they know what legal options they have in dealing with their case. Knowledgeable and experienced fraud attorneys know how to build a strong defense and proceed with the case to bring beneficial outcomes in favor of the individual.
They will negotiate and represent you in court to ensure the charges are minimized and, if possible, dismissed altogether. Even when you are not charged with fraud but believe that you may be targeted for a fraud investigation, then contacting a fraud attorney immediately will get you the upper hand and increase your chances of getting away unscathed. When you hire an attorney as early as possible, they have a better ability to prevent the filing of official charges.
The bottom line
Fraud crimes are considered white-collar crimes and can include wire fraud, mail fraud, bank fraud, telemarketing fraud, and bankruptcy fraud. Each type of fraud consists of different facts and circumstances and thus different punishments and penalties.
If you are facing fraud charges, then the best thing to do is to contact an experienced fraud attorney. Whether you are indicted for state or federal crime, fraud attorneys use their broad experience to represent clients involved in the different types of fraud crimes.
They will ensure that your fraud charges are handled with discretion to ensure your personal and professional interests are safeguarded and that every strategy is used to ensure favorable outcomes.
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