Fraud charges could stem from allegations of someone misleading investors or claims of someone intentionally interfering in financial transactions. There are forms of fraud that result in direct financial profit, such as mortgage fraud, as well as some forms of fraud that don’t lead to direct financial benefit for the person involved, such as medical billing fraud.
Frequently, those accused of white-collar crimes, including many types of fraud, will face federal charges rather than Texas state charges. Why do fraud charges frequently fall under federal jurisdiction?
1. Fraud cases are often interstate crimes
Mail fraud and wire fraud frequently involve transactions in more than one state or people all across the country. When fraud occurs in one specific geographic location and perhaps only affects a few people or local businesses, it may lead to state charges. However, fraud that affects people in multiple different states will likely lead to federal charges.
2. Fraud cases often involved misuse of federal resources
Wire fraud and mail fraud both involve using federal systems for criminal activity. Whether someone emails others to trick them into transferring funds to the wrong account during a home purchase or sends letters convincing people they owe money to the IRS, fraud often makes use of federal systems, including the Federal Reserve, the United States Postal Service and electronic communications.
3. Federal agencies build the case
Another reason that someone accused of fraud might face federal charges is that state authorities lacked the resources or jurisdiction to properly investigate. Sometimes, fraud cases are so complex that federal authorities must investigate to resolve the matter. Such investigations will typically focus on how someone violated federal law and will thus result in federal prosecution.
Federal criminal charges may lead to very strict penalties and even incarceration states away from the people that you love. Those accused of white-collar crimes in Texas need to understand the risks involved and the likely penalties for the charges that they face. Otherwise, they may make choices, like pleading guilty, that do long-term harm to them and their families.
Learning more about the rules that apply to white-collar criminal charges can help those hoping to respond to a recent investigation or arrest.