FEDERAL CRIMINAL LAWYERS

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Federal agents showed up with an indictment listing twenty counts of mail fraud. Your promotional mailers had exaggerated claims about your product. Each mailing became a separate federal felony. News articles say you’re “facing 400 years.” You sent marketing materials—how is that twenty federal felonies?

Understanding mail fraud penalties—not the statute’s maximum, but what ACTUALLY happens in your case—requires defending these cases across federal districts. Todd Spodek, a second-generation criminal defense attorney with hundreds of federal trials, has seen how prosecutors use mail fraud charges to pressure pleas. Each piece of mail becomes a separate count carrying twenty years theoretical exposure. If you’re facing mail fraud charges, call 212-300-5196.

What Counts

Mail fraud under 18 USC § 1341 requires three elements: (1) scheme to defraud, (2) use of mail to execute the scheme, and (3) intent to defraud. “Mail” doesn’t mean just USPS—includes UPS, FedEx, DHL, any commercial carrier. That promotional package you sent via FedEx? Counts. Brochure mailed via UPS? Counts. Invoice sent through USPS? Counts. You’re a business owner who sent promotional materials exaggerating your product’s effectiveness. Mailed to 200 customers. Prosecutors charge you with twenty counts—they selected twenty representative mailings, each one a separate count. Or you’re a contractor who sent invoices billing for work not completed, used USPS to mail invoices to clients. Each invoice = separate count of mail fraud. The “mail” element is satisfied if you caused the mail to be sent—doesn’t require you personally dropped it in a mailbox. Your employee mailed the invoices at your direction? That’s sufficient. Federal prosecutors must prove you intended to defraud. Good faith belief in the accuracy of your statements—even if wrong—negates intent. If you genuinely believed your product claims were accurate, if you relied on testing data from your manufacturer, if you had reasonable basis for the representations—that’s a defense. Prosecutors must prove you knowingly made false representations. Business puffery isn’t mail fraud. Aggressive marketing that exaggerates benefits might be unethical, might violate FTC regulations, but isn’t necessarily criminal fraud. The line between aggressive sales tactics and criminal fraud turns on intent—did you knowingly deceive, or did you engage in typical marketing exaggeration?

The Numbers

Mail fraud carries up to twenty years per count. Prosecutors charge twenty counts. You’re theoretically facing 400 years. This is how federal prosecutors create pressure—but it’s not how sentencing actually works. Base offense level for mail fraud is seven under the sentencing guidelines. Level seven with zero criminal history equals zero to six months imprisonment. Sounds manageable. But loss amount adjustment changes everything. Guidelines add levels based on victim losses: $150,000 to $250,000? Add ten levels. $1.5 million to $3.5 million? Add sixteen levels. $25 million to $65 million? Add 22 levels. Mail fraud with $2 million in victim losses: base level 7, add 16 levels for loss amount, total level 23. Criminal history category I (no record). Guideline range: 46 to 57 months—four to five years federal prison. That’s before other adjustments. More than ten victims adds two levels. Sophisticated means (shell companies, false documents) adds two levels. If you were organizing others, leadership role adds four levels. Financial institution enhancement is the major escalation. If your mail fraud “affects a financial institution,” maximum penalty jumps from 20 years to 30 years and fines can reach $1 million. “Affects a financial institution” is broadly interpreted—doesn’t require the bank lost money, just that the scheme involved or targeted a financial institution. You applied for a business loan using falsified financial statements mailed to the bank? Affects a financial institution—30 year maximum. You deposited fraudulently obtained checks at your bank? Affects a financial institution. The bank doesn’t need to be the victim or suffer loss—just needs to be part of the fraudulent scheme. Number of counts you plead to matters differently than most think. Pleading to three counts versus twenty counts typically doesn’t change your guideline range—the loss amount and victim count already capture the full scope. But multiple counts affect supervised release violations later, create worse record for immigration consequences, professional licensing. Federal prosecutors routinely charge fifteen to thirty counts of mail fraud, knowing they’ll negotiate to two or three for the plea. The multi-count indictment creates enormous pressure. First offer: plead to eight counts, stipulate to $3 million loss, guideline range calls for seven years. As trial approaches and your attorney identifies weaknesses, offer improves: plead to two counts, loss amount negotiated to $800,000, guideline drops to three years. Spodek has negotiated these cases for years—prosecutors expect negotiation, use the count multiplication as leverage.

Mail fraud is prosecutors’ favorite charge because it’s easy to prove and multiplies easily. Any scheme involving dishonesty can become mail fraud if mail was used at any point.

Challenging intent is primary. Mail fraud requires you “knowingly and willfully” participated in scheme to defraud. Good faith belief—even if wrong—negates intent.

Loss amount fights happen at plea and sentencing. Government inflates loss calculations by including “intended loss” that never materialized. You sent 500 promotional mailers at $1,000 per product. Government claims intended loss of $500,000. Your attorney challenges: how many people actually purchased? How many actually lost money? Reducing calculated loss from $500,000 to $150,000 drops guideline by six levels—difference between three years and eighteen months. Todd Spodek handles cases across U.S. Attorneys’ Offices nationwide and has seen how different districts calculate loss amounts differently—this experience matters when challenging government’s inflated numbers.

Call 212-300-5196.