You wrote a check. Or cashed one that wasn't yours. Maybe you altered one that came in the mail - changed the payee name, bumped up the amount, deposited it at a bank that wasn't asking too many questions. You figured if anything happened, it would be state court. A misdemeanor. Maybe probation and some restitution.
You're wrong.
Federal check fraud isn't what you think it is. What you're calling "check fraud" - prosecutors call it bank fraud. The maximum penalty under 18 U.S.C. § 1344 is 30 years in federal prison and a $1 million fine. The Secret Service investigates these cases. The conviction rate in federal fraud cases is 89%. This is the federal system, and the federal system doesn't lose.
Welcome to Spodek Law Group. We handle federal criminal defense for clients facing bank fraud, wire fraud, mail fraud, and the constellation of charges that prosecutors stack when they're targeting check fraud schemes. If you've received a target letter, if federal agents have contacted you, if you're watching the news about Treasury check crackdowns and wondering if that investigation is coming for you - this article explains exactly what you're up against.
What Federal Check Fraud Actually Means
There is no federal statute called "check fraud." Look for it. It doesn't exist.
What exists is 18 U.S.C. § 1344 - the federal bank fraud statute. It covers any scheme to defraud a financial institution, and that definition is extremley broad. Altered checks. Forged checks. Stolen checks. Check kiting. If a check touched a federally insured bank - and nearly every bank is federally insured - you're in federal territory.
The penalty: up to 30 years in federal prison. Up to $1 million in fines. This isn't state court forgery where you might get probation and community service. This is the federal system, were judges include prison time in nearly every fraud sentencing.
And the statute of limitations is 10 years - double the normal federal crime window. That check you altered in 2020? Its prosecutable until 2030. That deposit you made in 2021? Until 2031. Congress gave prosecutors a decade to build there case, and the evidence dosent disappear. Banks keep records forever. The paper trail is permanent.
Who investigates these cases? Not local police. This is multi-agency federal enforcement:
- Secret Service: Primary jurisdiction over Treasury check fraud and financial crimes
- Postal Inspectors (USPIS): Any check that moved through the mail - they have jurisdiction over 200+ federal statutes
- FBI: Large-scale bank fraud schemes
- IRS Criminal Investigation: Tax refund check fraud
- TIGTA: Treasury check fraud involving tax administration
The agencies work together. FinCEN issued an alert in 2024 specifically about mail theft-related check fraud. From March 2020 to February 2021, the Postal Inspection Service recieved 299,020 mail theft complaints - a 161% increase. Thats not a coincidence. Thats an enforcement wave building.
The Numbers That Will Decide Your Future
Heres were most people make there critical mistake. They think about going to trial. Fighting the charges. Having there day in court.
The federal conviction rate for fraud cases is 88.9%.
According to the Bureau of Justice Statistics for FY 2023:
- 85.3% of defendants pleaded guilty
- 3.6% were convicted at trial
- 0.8% were acquitted at trial
- 10.4% had cases dismissed
Read those numbers again. Less then 1% of defendants who go to trial are acquitted. The system isn't designed for you to win. Its designed for you to plead.
In 2024, 89% of all federal fraud cases resulted in a prison sentence. Not probation. Prison.
The sentence depends heavily on loss amount. The federal sentencing guidelines under §2B1.1 start with a base offense level of 7, then add levels based on the dollar amount:
- Loss $10,000-$30,000: +4 levels
- Loss $30,000-$70,000: +6 levels
- Loss $70,000-$120,000: +8 levels
- Loss $120,000-$200,000: +10 levels
- Loss $200,000-$400,000: +12 levels
- Loss $400,000-$1 million: +14 levels
- Loss $1 million+: +16 levels
Additional enhancements for sophisticated means, number of victims, use of identity theft. The levels add up fast.
Real cases: A man who altered checks worth $45,000 received 24 months in federal prison - and he had no prior criminal record. Another defendant got 20 years for $195,345 in bad checks. Dyonte Scott, an Illinois man, was sentenced to 5 years and 5 months for using stolen identities and Treasury checks in Montana. The amount doesn't protect you. The federal system doesn't do proportional justice the way you'd expect.
And right now, DOJ is prioritizing Treasury check fraud above almost everything else.
In Massachusetts, 8 defendants were charged for stealing $8.8 million in Treasury tax refund checks. They altered the checks to pay shell companies they controlled. In New Jersey, 12 defendants face charges for an $11 million check conspiracy running from March 2023 through May 2025. In New York, 6 defendants are charged with attempting to steal $80 million in government checks.
Many of these were COVID-era Employee Retention Credit refunds. People thought they were free money from the pandemic. There not free. There evidence. And prosecutors are working backward through the bank records right now.
How One Check Becomes Five Charges
The federal charging practice is simple: one check, multiple statutes.
Prosecutors dont just charge you with bank fraud. They stack charges to create leverage:
- Bank Fraud (18 U.S.C. § 1344) - 30 years maximum
- Wire Fraud (18 U.S.C. § 1343) - 20 years (30 if financial institution)
- Mail Fraud (18 U.S.C. § 1341) - 20 years
- Theft of Government Funds (18 U.S.C. § 641) - 10 years
- Aggravated Identity Theft (18 U.S.C. § 1028A) - mandatory +2 years consecutive
Theoretical exposure from a single check with identity theft involved: 82+ years.
Nobody serves 82 years. That's not the point. The point is leverage. Your plea offer will reference all five counts. "Plead guilty to one count of bank fraud, we dismiss the rest." But they needed the rest to make you take the deal. They needed you looking at 82 years to make 5 years sound reasonable.
Every wire transmission in furtherance of a check fraud scheme is a separate count. Every use of the mail is a separate count. Prosecutors can stack dozens of individual counts, each carrying decades. The statutory maximum exposure in complex cases isn't 30 years - it's hundreds.
Look at Dyonte Scott's case. He pleaded guilty to three charges from the same conduct: bank fraud, possession of stolen Treasury check, and aggravated identity theft. That's how charge stacking works. Same checks. Same scheme. Multiple federal convictions.
What Happens If You're Under Investigation
The single most critical rule:
Do not talk to federal agents without a lawyer present.
This sounds obvious. It isn't obvious enough. People keep making this mistake. The agents show up friendly. Cooperative. "We just want to clear some things up." "You're not in trouble, we're just gathering information." "Help us understand what happened and we can work this out."
They're not on your side. They're building a case. Everything you say becomes evidence.
And here's the trap most people don't see coming: voluntary repayment.
You think if you return the money, the problem goes away. The DOJ has explicitly stated that voluntary repayment before charges can be used as evidence of consciousness of guilt. You're proving you knew it was wrong. You're making their case easier. The "fix" becomes exhibit A.
If you're under investigation or concerned you might be:
- Don't destroy any documents. Document destruction becomes obstruction of justice - a separate federal charge.
- Don't discuss the matter with anyone else who might be involved. Those conversations can be used against you, and you might turn a single-defendant case into a conspiracy.
- Don't make voluntary payments without counsel. Timing and structure matter enormously.
- Don't talk to investigators. Exercise your Fifth Amendment rights.
- Contact a federal defense attorney immediately. The earlier you act, the more options exist.
Todd Spodek has handled federal fraud cases and understands the difference between pre-indictment investigation stage - where intervention might prevent charges - and post-indictment defense. The strategy is completely different depending on where your case stands.
When You're Ready
If you're facing a federal check fraud investigation - or you're watching the Treasury check fraud crackdowns and wondering if that wave is coming for you - Spodek Law Group can help you understand where you stand.
The consultation is free. There's no obligation.
What you'll get is an honest assessment. What stage is the investigation? Has it been referred for prosecution? What does the evidence look like? What are realistic outcomes - not best-case fantasies, but actual possibilities based on how these cases resolve?
Call us at 888-997-4071.
The statute of limitations runs until 2030 or 2031 depending on when the conduct occurred. The government has time. But once they move, things happen fast. The earlier you have counsel, the more leverage exists.
Don't wait until federal agents show up at your door.
We're here when you need us.
