Criminal Fraud

When someone commits fraud, they are making a misrepresentation to get something for their benefit. This could include misrepresenting material facts to get someone to sign a contract or stealing someone’s identity to take out a loan in their name. Most cases of fraud involve a person trying to deceive someone else to get something of value.

Fraud can be a civil wrong or a criminal offense. The criminal penalties for fraud and misrepresentation can include time in prison and a felony criminal record. If you are charged with fraud offenses, talk to an experienced criminal defense attorney for legal advice.

What Is Criminal Fraud?

Under federal law, criminal fraud includes any scheme to defraud, or using false promises or representations to get someone else’s money or property. The definition is similar in most state laws across the U.S.

For example, if a doctor bills Medicare for procedures never performed on patients, the doctor may be trying to get payment by false pretenses or using false information. The doctor could face federal criminal charges for health care fraud.

A criminal fraud charge is charged in criminal court. Fraud is an offense under state or federal criminal law. Federal criminal charges usually involve large-scale fraud schemes or fraud involving the federal government.

Fraud can also be a civil tort. In a civil fraud charge, the fraud victim can file a lawsuit for damages and financial losses. For example, if a salesperson makes false statements about a used car, the fraud victim could file a civil case to recover money lost on the fraudulent car sale.

What Are Common Types of Fraud?

Criminal fraud is typically a type of white-collar crime. White-collar crimes are generally non-violent crimes motivated by financial benefits. Fraud can take many forms, including:

• Health care fraud
• Insurance fraud
• Mail fraud
• Medicare fraud
• Securities fraud
• Credit card fraud
• Wire fraud
• Bankruptcy fraud
• Tax fraud
• Bank fraud
• Identity theft
• Counterfeiting

Identity Theft and Criminal Fraud

Identity theft is an increasingly common type of criminal fraud. In identity theft, someone uses another person’s identifying information to obtain money, goods, or other benefits. Identifying information can include a person’s name, birth date, and Social Security number. Someone can use this information to open up credit cards or take out fraudulent loans.

Identity theft can happen online through malware, phishing, or other computer scams. Often, a victim doesn’t even know that someone has stolen their identity until it’s too late.

Criminal Embezzlement

Unlike other types of fraud, embezzlement involves money or property that someone has legal access to. This generally involves an employee or professional entrusted with money or property as part of their job.

For example, an accountant at a large company has access to a company’s financial information. The accountant uses their access to take money for their own benefit. Embezzlement can be difficult to detect. Embezzlement often involves moving small amounts of money over a long period of time.

What Are the Penalties for Criminal Fraud?

The penalties for criminal fraud can depend on the type of crime, who is involved, the amount allegedly stolen, and whether the case is in state or federal court. Under federal law, the penalties for a fraud conviction can include:

• Up to five years in prison
• Fines
• Restitution to pay back any stolen money

Federal criminal fraud is generally a felony offense. A felony criminal record has long-term consequences, which can make it hard to find a job, get housing, or get government benefits. Felons are generally prohibited from owning or possessing a firearm.

When Do I Need a Criminal Fraud Lawyer?

Criminal fraud cases often start with a company or financial institution reporting fraud to law enforcement. Government agencies can get involved in a fraud investigation to gather evidence of the crime and prosecute the suspect in federal court. Government agencies involved in a federal fraud case can include:

• Federal Bureau of Investigation (FBI)
• Securities and Exchange Commission (SEC)
• Internal Revenue Service (IRS)
• Federal Trade Commission (FTC)

If you are part of a criminal fraud investigation, you should talk to a criminal defense attorney for advice as soon as possible. If your company is investigating possible fraud, your comments could be used against you in a criminal case. Make sure you understand your legal rights in a criminal fraud investigation. A criminal fraud lawyer can inform you of your legal rights and defend you against any criminal charges.