Wire fraud might sound like something out of a 1980s movie about hackers, but it’s actually one of the most serious federal crimes you can face in New York. Every day, federal prosecutors in Manhattan and Brooklyn are building cases against people who thought they were just sending emails, making phone calls, or conducting business online. The reality is that if you use any form of electronic communication to further a fraudulent scheme, you’re potentially looking at decades in federal prison.
The experienced federal criminal defense attorneys at Lebedin Kofman LLP in New York are prepared to guide you through the complexities of wire fraud charges. We understand the stress and uncertainty these federal accusations can cause, and we are committed to providing knowledgeable, strategic legal representation tailored to your unique circumstances. Let us help protect your rights and defend your future. Contact us today at (646) 663-4430 to arrange a free consultation and learn more about how we can assist you.
Let me break down exactly what wire fraud means, how federal prosecutors use this powerful tool, and what you need to know if you’re facing these charges or think you might be under investigation.
What Makes Wire Fraud a Federal Crime
Wire fraud is prosecuted exclusively under federal law, specifically 18 U.S.C. § 1343. This statute makes it illegal to use interstate wire communications to execute schemes to defraud victims of money or property. The key word here is “interstate.” If your communication crosses state or international boundaries, you’ve just given federal prosecutors jurisdiction over your case.
We’re talking about any electronic communication that crosses state lines: telephone calls, emails, text messages, social media posts, internet transactions, even Zoom calls. In today’s interconnected world, almost every digital communication involves interstate commerce in some way.
The Three Elements Prosecutors Must Prove
Federal prosecutors need to prove three essential elements beyond a reasonable doubt to nail you with a wire fraud conviction:
Scheme to Defraud: You must have devised or intended to devise a plan to defraud victims of money or property through material misrepresentations or omissions. Here’s the kicker: the scheme doesn’t need to be successful. Prosecutors can charge attempted wire fraud even if no victims suffered actual losses.
Interstate Wire Communication: The prosecution must show that you used or caused the use of interstate wire communications in furtherance of the fraudulent scheme. The wire communication itself doesn’t need to contain fraudulent information. It just needs to be used during the course of executing the scheme.
Intent to Defraud: You must have acted with specific intent to defraud victims, meaning you knowingly participated in the scheme with awareness of its fraudulent nature. General negligence or recklessness won’t cut it for a conviction.
Recent Supreme Court Clarification: Bad News for Defendants
In 2025, the Supreme Court significantly clarified wire fraud law in a way that’s terrible news for defendants. The Court rejected the requirement that victims suffer economic harm, holding that defendants can be convicted of wire fraud for inducing victims to enter transactions under materially false pretenses, even without proving net economic loss to victims.
This ruling expanded prosecutorial authority and overturned contrary precedent in multiple federal circuits. Basically, the Supreme Court made it easier for prosecutors to convict people of wire fraud, even when nobody actually lost money.
Criminal Penalties: When “Serious” Doesn’t Begin to Cover It
Wire fraud carries penalties that can destroy your life. We’re talking about serious federal felony charges with consequences that extend far beyond prison time.
Basic Penalties That Aren’t Basic at All
Standard wire fraud convictions carry potential sentences of up to 20 years imprisonment and fines up to $250,000 per count. Each use of interstate wire communications can constitute a separate count, so prosecutors can file multiple charges for a single scheme.
Enhanced penalties apply when wire fraud affects financial institutions or involves presidentially declared disasters, increasing maximum sentences to 30 years imprisonment and fines up to $1 million per count.
Federal Sentencing Guidelines: The Math That Determines Your Life
Federal judges use the U.S. Sentencing Guidelines to determine appropriate sentences within statutory ranges. Wire fraud cases fall under Guideline § 2B1.1, which uses a points-based system that can quickly add up to decades in prison:
Base Offense Level: Wire fraud typically receives 6-7 base points depending on the statutory maximum penalty.
Loss Amount Enhancements: This is where things get really ugly. The total loss to victims determines massive enhancements ranging from 2 levels for losses of $6,501-$15,000 up to 30 levels for losses exceeding $550 million.
Victim Impact: Additional enhancements apply for cases involving 10 or more victims (2 levels), 50 or more victims (4 levels), or 250 or more victims (6 levels).
Leadership Role: If you organized or led the fraudulent scheme, you face 2-4 level enhancements depending on your level of control.
Abuse of Trust: Professionals who exploit their positions of trust face 2-level enhancements.
These enhancements stack up quickly. A scheme involving $1 million in losses and 50 victims can easily result in 15-20 year sentences for first-time offenders.
New York State Fraud Laws: The Local Option
While wire fraud is prosecuted federally, New York maintains parallel state fraud statutes under Penal Law Article 190 that prosecutors may pursue for conduct not involving interstate communications.
Scheme to Defraud
New York recognizes two degrees of scheme to defraud:
Second Degree (Penal Law § 190.60): Class A misdemeanor involving schemes with intent to defraud more than one person or obtain property exceeding $1,000. Maximum penalties include one year in jail and $1,000 fines.
First Degree (Penal Law § 190.65): Class E felony applying when schemes involve 10 or more intended victims, property exceeding $1,000 from multiple victims, or targeting vulnerable elderly persons. Penalties include up to four years in state prison.
Identity Theft Crimes: The Common Add-On
New York’s identity theft laws often intersect with wire fraud cases, particularly in cybercrime prosecutions:
- Third Degree (§ 190.78): Class A misdemeanor for basic identity assumption
- Second Degree (§ 190.79): Class E felony for cases involving property losses exceeding $500
- First Degree (§ 190.80): Class D felony for cases involving losses exceeding $2,000
Financial Consequences: The Hits Keep Coming
Beyond the criminal penalties, wire fraud convictions come with financial consequences that can follow you for the rest of your life.
Restitution Requirements: Paying Back Every Penny
Federal law mandates restitution to victims in wire fraud cases under the Mandatory Victims Restitution Act. Courts must order defendants to compensate victims for:
- Direct financial losses from fraudulent conduct
- Reasonable costs of participating in investigations and prosecutions
- Lost income from time spent dealing with the fraud’s consequences
- Professional services needed to restore credit or financial standing
Restitution orders function as civil judgments enforceable through garnishment, asset seizure, and other collection methods. This debt doesn’t go away, even if you file for bankruptcy.
Asset Forfeiture: Losing Everything You Own
Federal prosecutors routinely seek forfeiture of property obtained through wire fraud or used to facilitate fraudulent schemes. They can pursue this through:
Criminal forfeiture as part of the criminal case, requiring conviction before asset seizure.
Civil forfeiture through separate proceedings that allow asset seizure without criminal conviction, requiring only probable cause that property is connected to criminal activity.
The government can take your house, your cars, your bank accounts, and anything else they can connect to the fraud. They can even take assets you purchased with legitimate money if they can argue those assets represent proceeds of the fraud.
How Federal Prosecutors Build Wire Fraud Cases
The Southern and Eastern Districts: Where Careers Go to Die
New York’s two federal districts, the Southern District (Manhattan) and Eastern District (Brooklyn), handle the majority of complex wire fraud prosecutions in the state. These districts are known for aggressive prosecution of financial crimes and regularly handle cases involving:
- Securities and investment fraud
- Healthcare fraud schemes
- Cryptocurrency and digital asset fraud
- COVID-19 relief program fraud
- International fraud conspiracies
These prosecutors have virtually unlimited resources and years of experience building complex financial crime cases.
Multi-Defendant Investigations: The Conspiracy Web
Wire fraud cases frequently involve multiple defendants and complex conspiracy charges. Federal prosecutors use various tools to build cases against fraud networks:
- Grand jury investigations to compel testimony and document production while maintaining secrecy
- Search warrants for electronic devices and financial records across multiple jurisdictions
- Wiretaps and electronic surveillance when authorized for ongoing criminal enterprises
Once you’re caught in a federal wire fraud investigation, prosecutors will use every tool at their disposal to build the strongest possible case against you and everyone connected to the scheme.
Defense Strategies: Fighting Back Against the Machine
When you’re facing federal wire fraud charges, you need defense strategies that attack every element of the prosecution’s case.
Pre-Indictment Advocacy: Getting Ahead of the Charges
Experienced federal defense attorneys often intervene before formal charges are filed, particularly when clients receive federal subpoenas or learn they’re under investigation. Early intervention strategies include:
Proffer sessions where defendants provide information to prosecutors in exchange for limited immunity from prosecution based on their statements.
Cooperation negotiations that may result in reduced charges or favorable plea agreements for defendants with valuable information about other criminal conduct.
Civil resolution through regulatory settlements or civil penalties that may preclude criminal prosecution in appropriate cases.
Trial Defense Strategies: Going to War
When cases proceed to trial, defense attorneys employ various strategies to challenge wire fraud convictions:
Challenging intent by demonstrating defendants acted in good faith without knowledge of fraudulent schemes.
Disputing interstate nexus by arguing wire communications were purely intrastate and outside federal jurisdiction.
Attacking materiality of alleged misrepresentations, showing they were not significant enough to influence victim decisions.
Questioning causation between wire communications and alleged fraudulent schemes.
Plea Negotiations and Cooperation: Sometimes Your Best Option
Most federal wire fraud cases resolve through plea agreements rather than trial. Successful plea negotiations often involve:
- Charge reductions from felonies to misdemeanors or from multiple counts to single counts
- Sentencing agreements establishing ranges within federal guidelines or departures below guidelines
- Cooperation credit under Federal Sentencing Guideline § 5K1.1 for defendants providing substantial assistance to ongoing investigations
Pretrial Detention: When Bail Isn’t Guaranteed
Federal judges have broad discretion in setting bail conditions for wire fraud defendants. Factors influencing detention decisions include:
- Risk of flight, particularly for defendants with significant assets or international connections
- Danger to the community, especially in cases involving ongoing fraudulent conduct
- Obstruction potential, when defendants have access to evidence or co-conspirators
- Economic harm prevention, to stop continued losses to victims
Courts may impose restrictive conditions including asset freezes, surrender of passports, electronic monitoring, and limitations on financial transactions.
Professional and Immigration Consequences: The Lifetime Penalties
Wire fraud convictions carry significant collateral consequences beyond criminal penalties:
- Professional licenses in fields such as law, medicine, finance, and real estate may be suspended or revoked following felony convictions
- Immigration status for non-citizens may be jeopardized, as wire fraud constitutes an aggravated felony triggering mandatory deportation proceedings
- Employment restrictions in financial services, healthcare, and other regulated industries may permanently bar convicted individuals from certain careers
- Security clearance eligibility for government positions or defense contractors is typically eliminated by federal fraud convictions
Emerging Trends: Where Enforcement Is Heading
Federal prosecution of wire fraud continues evolving with technological advances and emerging criminal schemes:
Cryptocurrency fraud involving digital assets and decentralized finance platforms represents a growing enforcement priority.
COVID-19 relief fraud prosecutions continue as federal agencies investigate billions in potentially fraudulent pandemic assistance programs.
Elder fraud schemes targeting vulnerable populations through sophisticated social engineering attacks receive enhanced prosecution attention.
International cooperation in cross-border investigations has expanded, with U.S. prosecutors working closely with foreign law enforcement agencies.
When Everything Is on the Line
Wire fraud prosecutions represent the intersection of cutting-edge technology and old-fashioned federal criminal law. The comprehensive federal framework for prosecuting these crimes, combined with New York’s parallel state laws, creates a legal environment where single schemes can result in decades in prison and lifetime financial consequences.
If you’re facing wire fraud charges or think you might be under investigation, you need to understand that federal prosecutors have virtually unlimited resources and years of experience building these cases. They’re not interested in giving you the benefit of the doubt, and they’re not going to go easy on you because it’s your first offense.
The consequences extend far beyond potential imprisonment to encompass lifetime restrictions on professional and personal opportunities. Your career, your family’s financial security, and your freedom all depend on making the right legal decisions from the moment you learn you’re under investigation.
This isn’t the time for hoping things work out or trying to handle things yourself. Federal wire fraud cases require experienced criminal defense counsel who understand both the technical aspects of these complex prosecutions and the strategic considerations involved in defending against the full power of the federal government.
If you’re facing wire fraud charges in New York, secure experienced legal representation immediately. Contact us today at (646) 663-4430 to begin building your defense. The early stages of a federal case often present the best opportunities for successful intervention, and your future may depend on having skilled legal counsel from the outset.
This article provides general information about wire fraud in New York. Every case is unique, and you should consult with a qualified criminal defense attorney about your specific situation.