Texas Federal Fraud & Financial Crimes Lawyer

What Makes Fraud a Federal Crime

Both state and federal law prohibit fraud, and the same conduct can sometimes be charged in either system. Federal jurisdiction attaches when the fraud involves interstate commerce: using electronic communications across state lines (wire fraud), using the postal service or commercial carriers (mail fraud), targeting a federally insured financial institution (bank fraud), or defrauding a federal healthcare program (healthcare fraud). The involvement of federal agencies, federal programs, or interstate communications almost always establishes federal jurisdiction.

The federal government’s resources for investigating and prosecuting fraud cases significantly exceed those of most state prosecutors’ offices. Federal fraud investigations are conducted by specialized agents (FBI Financial Crimes, IRS Criminal Investigation, HHS-OIG, FDIC-OIG, SEC Enforcement, and HIS) who work cases for months or years before charges are filed. By the time a grand jury indictment issues, the government’s evidentiary record is typically extensive.

Federal Fraud Statutes and Penalties

Mail fraud —18 U.S.C. §1341: Any scheme to defraud using U.S. mail or commercial carriers. Up to 20 years per count; 30 years if a financial institution is affected.

Wire fraud —18 U.S.C. §1343: Any scheme to defraud using interstate electronic communications. Up to 20 years per count; 30 years if a financial institution is affected. The most broadly charged federal fraud statute.

Bank fraud —18 U.S.C. §1344: Scheme to defraud a financial institution or obtain its funds by false pretenses. Up to 30 years and a fine up to $1,000,000.

Healthcare fraud —18 U.S.C. §1347: Scheme to defraud a healthcare benefit program. Up to 10 years; 20 years if serious bodily injury results; life if death results.

Identity theft —18 U.S.C. §1028: Production, transfer, or use of false identification documents. 5 to 25 years depending on the offense.

Aggravated identity theft —18 U.S.C. §1028A: Mandatory 2-year consecutive sentence added to the underlying felony sentence. Cannot run concurrently. Cannot be reduced. The Supreme Court’s decision in Dubin v. United States (2023) narrowed this statute significantly.

Securities fraud —18 U.S.C. §1348: Scheme to defraud in connection with securities or futures. Up to 25 years.

Bankruptcy fraud —18 U.S.C. §157: False statements in bankruptcy proceedings. Up to 5 years.

Tax fraud —26 U.S.C. §7201: Willful tax evasion. Up to 5 years and a fine up to $250,000.

Federal loan fraud —18 U.S.C. §1014: False statements to influence a federally insured financial institution on a loan application. Up to 30 years.

The Fraud Cases We Defend

Deandra Grant Law handles the full spectrum of federal fraud charges. Each of the following has dedicated sub-page coverage with detailed analysis of the specific elements, defense strategies, and sentencing consequences:

• Wire fraud and mail fraud — the intent element, loss calculations, materiality, and digital evidence challenges

• Bank fraud — the two theories of liability, false pretense analysis, and the financial institution knowledge requirement

• Money laundering — §1956 concealment laundering and §1957 spending laundering; cryptocurrency tracing; forfeiture

• Federal loan fraud — PPP and EIDL fraud, the willfulness element, reliance on professional advice, statute of limitations

• Tax fraud — the Cheek willfulness defense, IRS-CI investigation methodology, civil resolution as an alternative

• Healthcare fraud — Medicare and Medicaid billing fraud, the Anti-Kickback Statute, medical necessity, billing data statistical challenges

• Identity theft and aggravated identity theft — the Dubin standard, knowledge element, mandatory consecutive sentence, digital device attribution

• Securities fraud — scheme to defraud in securities transactions, materiality, and scienter requirements

How Federal Fraud Cases Are Defended

The intent element. Every federal fraud statute requires proof of knowing, intentional conduct. Business failures, accounting errors, reliance on professional advisors, misunderstandings about legal requirements, and good-faith business judgments are not fraud. The government must prove that the defendant knew their representations were false and intended to cause financial harm. This element is the most frequently contested issue in federal fraud cases.

Loss amount challenges. Federal fraud sentencing under U.S.S.G. §2B1.1 is driven primarily by the calculated loss amount. The loss calculation adds sentencing levels that can produce sentences far longer than the base offense alone would suggest. Independently challenging the loss calculation (identifying legitimate transactions included in the government’s figure, disputing the methodology, and presenting alternative calculations) can significantly reduce the Guidelines range.

Digital evidence. Federal fraud prosecutions are built on electronic records: emails, financial transaction data, account records, device contents, and metadata.

Fourth Amendment challenges. Federal fraud investigations involve search warrants for financial records, email accounts, and devices. The scope and execution of those warrants are subject to challenge. Evidence obtained through overbroad searches or defective warrants may be suppressed.

If you are facing federal fraud charges in Texas, call (214) 225-7117 for a free, confidential consultation with James Lee Bright. Or schedule online at texasdwisite.com.