18 USC 371 Conspiracy

Federal conspiracy law was created to catch organized crime bosses who insulate themselves from direct criminal conduct. It's evolved into something else entirely. Now, under 18 USC 371, prosecutors can turn you into a federal criminal even if you never committed a single underlying offense. All they need to prove is that you agreed with someone else to commit a crime, and that anybody in that agreement took any action—even a completely legal one—toward making it happen. Your presence in the room, your phone call, your email, your silence when you should of objected—these become evidence of conspiracy. And once the goverment proves a conspiracy exists, every person in that agreement becomes criminally responsable for everything every other person does "in furtherance" of it.

At Spodek Law Group, we've defended clients facing federal conspiracy charges for over a decade. We understand how prosecutors use 18 USC 371 to multiply charges, create plea pressure, and hold people responsible for crimes they didn't commit. This artical explains how federal conspiracy law actually works, why it's prosecutors' favorite weapon, and what you need to know if your facing these charges. If your being investigated or charged with conspiracy under 18 USC 371, call us at 212-300-5196. The decisions you make in the first 48 hours can determin the trajectory of your entire case.

The Two-Headed Statute That Makes Everyone a Criminal

18 USC 371 isn't one law—its two. The statute has what lawyers call an "offense clause" and a "defraud clause," and prosecutors can use either one to charge you.

The offense clause makes it a crime to conspire to commit any federal offense. Bank fraud, wire fraud, tax evasion, immigration violations—if its a federal crime, conspiring to do it is also a crime under this clause. Prosecutors must prove three elemants: (1) an agreement between two or more people to commit a federal offense, (2) you knowingly joined that agreement, and (3) someone in the conspiracy commited an overt act to further it.

The defraud clause is broader and more dangerous. It makes it a crime to conspire "to defraud the United States, or any agency therof in any manner or for any purpose." Most people hear "defraud" and think it means stealing money. It doesn't. The Suprem Court defined "defraud" under this statute to include "impairing, obstructing or defeating the lawful function of any department of Government." No financial loss required. If you and someone else agree to obstruct a government function—say, interfearing with an IRS audit, or submitting false information to the SEC, or rigging bids for government contracts—that's conspiracy to defraud under the defraud clause. Even if the goverment looses no money.

Here's the irony: the statute says "conspiracy to defraud the United States," which makes it sound like your stealing from the Treasury. But you can be convicted of defrauding the goverment without taking a single dollar. In United States v. Hopkins, defendants disguised campaign contributions to evade Federal Election Commision reporting requirements. No money was stolen from the goverment. But because there actions "obstructed" the FEC's ability to track contributions, they were convicted under the defraud clause of 18 USC 371.

The takeaway: federal conspiracy law doesn't just punish people who commit crimes. It punishs people who agree to commit crimes. And "agreement" doesn't require a written contract, a handshake, or even a conversation. Courts allow prosecutors to infer agreement from circumstantial evidence—your presence at meetings, your emails, your phone records, your financial transactions. You can be convicted of agreeing to something you never explicitely agreed to.

The Overt Act That Isn't Actually a Crime

To convict you under 18 USC 371, the goverment must prove someone in the conspiracy committed an "overt act" in furthurance of the agreement. This sounds like a meaningful safegaurd. It's not.

An overt act is any action—literally any action—that moves the conspiracy from talk to action. The act doesn't have to be illegal. It doesn't have to be the crime itself. Courts have held that the overt act requirement is satisifed by acts that are "innocent in themselves," as long as there done "in furtherance of the conspiracy."

Lets make this concrete. Say three people agree to commit arson for insurance fraud. One of them buys gasoline from a gas station. Buying gasoline is completly legal. But if prosecutors can prove the gasoline was purchaced "in furtherance of the arson conspiracy," that purchase is the overt act. All three conspirators are now guilty of federal conspiracy—even if the arson never happens, even if the gasoline is never used, even if the plan falls apart the next day.

The goverment doesn't have to prove that YOU committed the overt act. They just have to prove that someone in the conspiracy did. So if your charged in a conspiracy with 10 other people, and one of those people sent a single email or made a single phone call related to the scheme, that's enough. The overt act requirement is satisified for all 11 defendants.

Here's what makes this especialy dangerous: prosecutors don't have to prove the conspiracy actually succeded. They don't have to prove the underlying crime was commited. They don't even have to prove it was possible to commit the crime. If you and someone else agreed to defraud the goverment using a method that wouldn't actually work, your still guilty of conspiracy. The law punishes the agreement and the attempt, not the result.

This is the uncomfortable truth about federal conspiracy law: by the time your arrested, prosecutors don't need to prove you did anything wrong. They just need to prove you agreed to do something wrong, and that somebody—anybody—took any action that could be characterized as moving toward that goal. The overt act is a formality, not a protection.

And there's one more twist. The overt act determines when the statute of limitations starts running. For most federal crimes, the goverment has five years from the date of the offense to charge you. But for conspiracy, the limitations period doesn't start untill the last overt act. That means if the conspiracy continues for years—if co-conspirators keep taking actions in furthurance of the scheme—the statute of limitations keeps reseting. You could have minimal involvment in Year 1, the conspiracy could continue through Year 5, and you can still be charged in Year 6 for a conspiracy that started half a decade ago.

When Your Co-Defendant's Crimes Become Your Crimes

Now we get to the most dangerous part of federal conspiracy law: Pinkerton liability.

In 1946, the Supreme Court decided Pinkerton v. United States, a case involving two brothers who were bootlegging whisky. Walter Pinkerton commited the substantive crimes—the actual illegal whisky transactions. Daniel Pinkerton was his brother and co-conspirator. The problem for Daniel: he was in federal prison when some of Walter's crimes occured. He physically could not have commited them.

The Supreme Court said it didn't matter. Daniel was convicted anyway—not because he committed the crimes, but because his brother Walter commited them "in furtherance of the conspiracy." The Court created a new doctrine: once a conspiracy is proven, every conspirator is criminally responsable for every reasonably forseeable crime committed by any co-conspirator in furtherance of the conspiracy. Even if you didn't participate. Even if you didn't know about it. Even if you were in prison when it happend.

Pinkerton liability is still the law today. It's the reason federal prosecutors love conspiracy charges.

Here's how it works in practice. You agree to participate in what you think is a minor fraud scheme—say, inflating invoices on a goverment contract. Your role is minimal: you create a few fake invoices. But your co-conspirator escalates. Without telling you, he starts bribing procurement officials, laundering money through shell companys, and obstructing federal investigations. Those crimes are federal offenses carrying 10-20 year sentences.

Under Pinkerton liability, you can be held criminally responsable for all of it. The goverment must prove: (1) a conspiracy existed, (2) the substantive offenses were committed by a co-conspirator, and (3) those offenses were committed "in furtherance of the conspiracy" and were "reasonably forseeable." If prosecutors can check those boxes, your on the hook for crimes you didn't commit, didn't know about, and never intended.

The "reasonably forseeable" standard is shockingly broad. Courts don't require that you specificaly foresaw the exact crime. They just require that the type of crime was a forseeable consequence of the conspiracy. If you conspired to defraud the goverment, and your co-conspirator obstructed a federal investigation into that fraud, courts will say obstruction was "reasonably forseeable." You agreed to fraud; covering up fraud is a natural extention. Your guilty of obstruction even if you never obstructed anything.

Here's the consequence cascade that ruins lives: You agree to Plan A (a minor scheme). Co-conspirator escalates to Plan B (a major crime) without your knowlege. Plan B is deemed "forseeable" and "in furtherance" of the conspiracy. Your now liable for Plan B under Pinkerton. Your sentence is calculated based on the harm caused by Plan B, not Plan A. Your "minor role" in a major conspiracy lands you in federal prison for a decade.

Defense attorneys call Pinkerton liability the "you're guilty of everything" rule. Prosecutors call it a tool to hold conspirators accountable. Either way, it transforms conspiracy from an agreement-based crime into a vicarious liability trap. Once your in, your responsable for everything.

The Math That Turns Minor Roles Into Major Sentences

The statute says 18 USC 371 carries a maximum penalty of five years imprisonmen. That's technically true. It's also deeply misleading.

First, conspiracy charges are almost never filed alone. Prosecutors charge conspiracy plus the substantive offenses that were the object of the conspiracy. So you get charged with conspiracy to commit wire fraud (5 years max under 371) AND wire fraud (20 years max under 18 USC 1343). The sentences can run consecutivly. Your looking at 25 years, not 5.

Second, even if your only convicted of conspiracy, the Federal Sentencing Guidelines calculate your sentence based on the total harm caused by the entire conspiracy—not your individual role. This is where "minor role" defendants get destroyed.

Here's an example. Ten people conspire to defraud Medicare of $10 million. Your role: you signed some false documents. You had no idea the scheme was that large. You thought it was maybe $50,000 in improper billing. But under the Sentencing Guidelines, your base offense level is calculated using the $10 million total loss amount. The Guidelines don't care that you only knew about $50,000. Your part of the conspiracy; the conspiracy caused $10 million in loss; your sentence is based on $10 million.

You can argue for a "minor role" adjustment, which might reduce your offense level by 2-4 points. But your still being sentenced based on a loss ammount that has nothing to do with your actual conduct. The result: people with minimal involvment in large conspiracys face 8-10 year sentences because the math is based on the conspiracy's scope, not there culpability.

This is the hidden connection between the statute and the Guidelines. The statute says "5 years max." The Guidelines say "calculate based on total conspiracy harm." The two together create a sentencing trap that catches people who thought they were involved in something small.

Here's the guilty plea cascade that defense attorneys see constantly: Your charged with conspiracy plus five substantive counts. Your public defender reviews the evidence—emails, financial records, cooperating witness testimony—and says the case is unwinable. Federal trials have a 99% conviction rate. She recommends pleading guilty to conspiracy in exchange for dismissing the substantive counts. You think: five years max, I'll probably get less. You plead. At sentencing, the Guidelines calculation comes back at 8-10 years based on total conspiracy harm. The judge sentences within the Guidelines range. You serve 8 years for a crime you thought carried five.

The statute is a lie by omission. The real penalty isn't five years—it's whatever the Sentencing Guidelines say, based on the total scope of the conspiracy.

How Government Contractors Get Caught

Federal conspiracy charges aren't limited to drug cartels and organized crime. Increasingly, prosecutors use 18 USC 371 to target goverment contractors, small business owners, and professionals who get entangled in schemes—often without realizing they've crossed into criminal teritory.

Victor Marquez (December 2025) is a perfect example. Marquez is a 53-year-old tech executive and Maryland resident who owns two IT companys. In December 2025, he was indicted for conspiracy to defraud the United States by rigging bids for goverment IT contracts. The goverment alleges he worked with two IT sales representatives to pay illegal kickbacks in exchange for contract awards. Both sales reps have already pleaded guilty—James Briar pleaded guilty in August to conspiracy to pay illegal kickbacks, and Robert Fay pleaded guilty in October to the same charge plus violating the Anti-Kickback Act.

Marquez's case illustrates the charging leverage prosecutors wield in conspiracy cases. They didn't charge all three defendants at once. They flipped two of them first—offered them plea deals in exchange for cooperation—and then used there testimony to build the case against Marquez. Now Marquez goes to trial (if he doesn't plead) facing not just the conspiracy charge, but also the testimony of two co-conspirators who have every incentive to make him look as guilty as possible. There sentences depend on how useful there cooperation is. The more blame they shift to Marquez, the better there own outcomes.

This is the charging leverage revelation: prosecutors charge multiple people in a conspiracy, offer deals to most of them, and force the remaining defendants into a prisoner's dilema. Cooperate and testify against others, or go to trial alone against the combined testimony of everyone who took a deal. Most people cooperate. The few who don't face the worst outcomes.

Recent 2024-2025 cases show the breadth of 18 USC 371:

• Theia Group Aerospace Fraud (March 2025): Five former principals of aerospace startup indicted for conspiring to defraud investors and lenders out of $250 million. One defendant also charged with evading $3.9 million in personal income taxes.
• South Dakota Immigration Fraud (February 2025): Nine people from Rapid City indicted for conspiracy to defraud the United States in connection with contracts entered into with the U.S. Forest Service. The conspiracy involved harboring aliens and submiting false documentation.

Early Warning System for Conspiracy Investigations

Watch for these signs:

• Subpoenas to multiple people in your organization or business network. Conspiracy cases are built on connecting people. If the goverment is asking questions about "who else knew" or "who else was involved," there building a conspiracy case.
• Questions about communications. Emails, text messages, phone calls—these are the primary evidence of "agreement" in conspiracy cases. If agents are asking about your communications with specific people, there looking for the conspiracy.
• Cooperating witnesses. If someone in your business or social circle is suddenly cooperating with federal investigators, assume there building a case against others. Cooperators don't just provide information—they provide testimony that establishes the elements of conspiracy.

If you see these signs, the time to act is before your indicted. Once the indictment comes down, your options narrow dramatically.

The Defenses That Rarely Work (And Early Cooperation)

Federal conspiracy cases are notoriously difficult to defend. The elements are broad, the evidence is often circumstantial, and the goverment's 99% conviction rate at trial speaks for itself. But there are defenses—some more viable than others.

No Agreement Existed

This is the most obvious defense: the goverment can't prove an agreement existed. 18 USC 371 doesn't require a written agreement, or even an explicit verbal one. Courts allow juries to infer agreement from circumstantial evidence. But if the evidence shows you were merely present, or aware of the scheme but not a participant, you can argue there was no knowing agreement.

The problem: juries are instructed that agreement can be inferred from conduct. If you attended meetings, sent emails, received money, or took any action that could be characterized as furthering the scheme, prosecutors will argue that's evidence of agreement. Silence can be agreement. Presence can be agreement. Failure to object can be agreement.

Withdrawal From the Conspiracy

Here's the withdrawal paradox: you can withdraw from a conspiracy and avoid liability for crimes committed after your withdrawal. But withdrawal has strict requirements.

To successfully withdraw, you must: (1) take affirmative steps to disavow or defeat the conspiracy, AND (2) communicate your withdrawal to your co-conspirators. Simply ceasing to participate isn't enough. You have to actively withdraw—and prove you did.

The problem: withdrawal only protects you from Pinkerton liability for crimes committed after you withdrew. It doesn't eliminate your guilt for the conspiracy itself. If an overt act was committed before you withdrew, your still guilty of conspiracy—you just can't be held responsable for later substantive offenses.

And withdrawal is nearly impossible to prove after the fact. You need evidence that you told co-conspirators "I'm out," or that you reported the scheme to authoritys, or that you took steps to undo your participation. Most people don't create that evidence. They just stop participating and hope the problem goes away. That's not withdrawal. That's silent complicity.

The Defense That Might Actually Work: Early Cooperation

Here's the uncomfortable truth: the defense that works best is becoming a cooperating witness yourself.

If you cooperate early—before indictment, or immediatly after arrest—you can potentially avoid the conspiracy charge altogether, or plead to a reduced charge with a cooperation agreement that drasticaly reduces your Guidelines range. The first person to cooperate usually gets the best deal. The last person to cooperate usually goes to trial.

This is the cooperation cascade: Your charged, you refuse to cooperate (out of loyalty or fear), other co-defendants take deals and agree to testify against you, you go to trial facing there combined testimony, your convicted, and you get the longest sentence because you didn't help the goverment.

What to Do If You're Facing 18 USC 371 Charges

If you've been contacted by federal investigators, recieved a target letter, or been indicted for conspiracy under 18 USC 371, here's what you need to know:

First: Do not talk to federal agents without an attorney present. Ever. For any reason.

Everything you say can be used to prove the "knowing agreement" element. Even if you think your explaining your innocence, even if you think cooperation will make the case go away, your giving prosecutors evidence. The most common mistake we see: people try to "talk there way out" of a federal investigation. You can't. You'll only talk your way into a conviction.

Second: Understand the timeline.

Federal conspiracy investigations often run for months or years before indictments are filed. If you've recieved a target letter, you typically have 30-90 days before indictment (if it's coming). Use that time to retain a federal criminal defense attorney who can assess the evidence, evaluate potential defenses, and negotiate with prosecutors before charges are filed.

If you've already been indicted, the timeline compresses. Arraignment happens within days. Plea negotiations typically occur within 60-180 days. Trial is usually 6-12 months after indictment. Discovery in conspiracy cases is often voluminous—thousands of pages of financial records, emails, phone logs. Your attorney needs time to review it, identify weaknesses in the goverment's case, and develop a defense strategy.

Third: Evaluate the Sentencing Guidelines calculation.

The statutory maximum under 18 USC 371 is five years. The actual sentence depends on the Guidelines calculation, which is based on factors like total loss ammount, your role in the conspiracy, your criminal history, and whether you accept responsability.

An experienced federal defense attorney can estimate your Guidelines range and use that to assess plea offers. If the goverment is offering a plea to conspiracy with a Guidelines range of 5-7 years, and your alternative is going to trial and facing a Guidelines range of 10-15 years (because of additional charges or enhancements), the math matters.

Fourth: Decide whether to cooperate.

This is the hardest decision. Cooperation can reduce your sentence by 50% or more—sometimes even avoiding prison entirely. But cooperation requires testifying against co-defendants, which carries personal and legal risks. You need an attorney who can negotiate a cooperation agreement that protects your interests and ensures the goverment follows through on its promises.

Why You Need Todd Spodek and Spodek Law Group

18 USC 371 conspiracy cases are fundamentally different from other federal criminal cases. The elements are broad. The evidence is often circumstantial. Pinkerton liability creates exposure for crimes you didn't commit. Sentencing is based on the total conspiracy scope, not your individual conduct. And the prosecutor's leverage—through stacking charges, flipping co-defendants, and threatening massive Guidelines ranges—is immense.

At Spodek Law Group, we've represented clients in federal conspiracy cases involving securities fraud, tax fraud, healthcare fraud, goverment contract fraud, and obstruction of justice. We understand how prosecutors build these cases. We know how to challenge the "agreement" element, cross-examine cooperating witnesses, negotiate cooperation agreements, and argue for downward departures at sentencing. Todd Spodek has over a decade of experiance defending clients against federal conspiracy charges, and he understands the nuances of how these cases are built and how there defended.

If your facing federal conspiracy charges, or if you've been contacted as part of a federal investigation, call us at 212-300-5196. We'll review the facts of your case, assess the strength of the goverment's evidence, explain your options, and develop a defense strategy tailored to your situation.

Federal conspiracy law is designed to catch people in a wide net. Once your in that net, getting out requires experienced legal representation, strategic decision-making, and an understanding of how the system actually works. Don't try to navigate it alone.