Federal law prohibits fraud, both broadly and in particular circumstances, with most fraud crimes covered under Chapter 47 of Title 18 of the United States Code in 18 U.S.C. §§1001-1040. Many fraud crimes are encompassed by 18 U.S.C. §1001, which prohibits the falsification or concealment of a material fact, making false representations, and making or using false documents and writings. Offenses under §1001 are punishable by up to five years in prison. While §1001 is broad, other sections of the statutory scheme are narrower, directed towards fraudulent bank and credit union entries, fraud in transactions involving the Department of Housing and Urban Development and Federal Housing Administration, fraud during the naturalization or citizenship process, and fraud associated with farm loans, among other topics, reflecting federal law’s focus on offenses that reach the sphere of federal government control.
This series of statutes also includes the section covering aggravated identity theft, 18 U.S.C. §1028A. An offense for aggravated identity theft involves the knowing transfer, possession, or use of a means of identification of another person. The offense is punishable by two years in prison, although offenses in connection with terrorism are punishable by five years in prison. Sentences for aggravated identity theft may not run concurrently with any other prison sentence.
The Eleventh Circuit affirmed a fraud conviction in United States v. Bell, 112 F.4th 1318 (11th Cir. 2024). In Bell, the defendant was charged with multiple fraud-related offenses, including making false statements to federal agents in violation of 18 U.S.C. §1001. On appeal, the Eleventh Circuit reviewed the sufficiency of evidence, appropriateness of the jury instructions, and appropriateness of the sentence. The Court found that, even when the defendant ultimately performed the agreed-upon services, underlying lies in the procurement of business was sufficient to prove fraudulent intent. With this finding, the Court placed both fraud-in-the-factum and fraudulent inducement schemes within the umbrella of “fraud” under the federal law. Further, because the prosecution had successfully proven the common scheme between the defendant and other parties, it was unnecessary to prove each individual had participated in direct acts of misrepresentation. Finding no error in the evidence, jury instructions, or sentence, the Eleventh Circuit affirmed the defendant’s fraud conviction.
Mail fraud is criminalized under 18 U.S.C. §1341. An offense is encompassed by §1341 if, as part of a scheme to defraud another, something is sent through use of the Postal Service for the purpose of executing the scheme. Mail fraud is punished more severely than fraud under §1001, with offenders facing up to twenty years in prison. If the mail fraud is connected to a major disaster or emergency, or related to a financial institution, the offender faces up to 30 years in prison and up to $1,000,000 in fines.
Health care fraud, in violation of 18 U.S.C. §1347, also carries heightened sentences. Health care fraud takes two forms: knowingly executing, or attempting to execute, a scheme to defraud a health care benefit program; and knowingly executing or attempting to execute a scheme to obtain money or property from a health care benefit program. While general violations of §1347 only carry a sentence of up to ten years, if the offense results in serious bodily injury to another, the sentence can reach up to twenty years. If the fraud results in the death of another, the offender faces up to life in prison.
Securities fraud under 18 U.S.C. §1348 also carries a heightened sentence of up to 25 years in prison, regardless of the circumstances surrounding the offense. To engage in securities fraud, the offender must knowingly execute, or attempt to execute, a scheme intended to obtain property or money by false means, or otherwise defraud, any security within a class registered under section 12 of the Securities Exchange Act of 1934.
Federal law also criminalizes forms of fraud within the Internal Revenue Code. 26 U.S.C. §§7204-7207 addresses several forms of tax fraud, including fraudulent statements, fraudulent withholding exemption certificates, and fraudulent returns. Most of the sections impose a sentence of up to one year in prison for violations, with the exception of §7206. §7206 encompasses several fraudulent tax offenses, including declaration under penalties of perjury, aid or assistance in fraudulent activity arising from internal revenue laws, fraudulent bonds, permits, and entries, removal or concealment with intent to defraud, and concealment of property and withholding, falsification, and destruction of records in connection with compromises and closing agreements. Any activity under §7206 is punishable by up to three years and prison, and up to $100,000 in fines.
While federal fraud crimes can take on many varied forms, in any sort of fraud case, it is important to seek the assistance of an experienced and knowledgeable attorney when facing federal fraud charges.
If you have a Federal Criminal case, a State Criminal case, a Municipal Case or a Family Law case in the Northern District of Alabama, Middle District of Alabama, Southern District of Alabama, or any federal jurisdiction in the Eleventh Circuit, including Alabama, Florida, and Georgia, contact Joe Ingram or Ingram Law LLC at 205-825-LAWS. Get Relief * Get Results.