Mail Fraud Penalties

Mail Fraud Penalties – Federal Criminal Defense Lawyers

If you’re facing twenty counts of mail fraud, it’s important to realize that, you are looking at 400 years theoretical maximum, and the United States Department of Justice Criminal Fraud Section has already been building their case. This is serious notification that federal prosecutors have your promotional mailers, each one became separate federal felony, they’re using this multiplication to pressure plea deals. The FBI showed up with indictment listing twenty counts, and this can be overwhelming because each piece of mail you sent became separate count carrying twenty years. The United States District Courts handle these cases, and prosecutors know how to use mail fraud charges to create massive theoretical exposure.

This is designed to explain what mail fraud penalties actually mean, and it’s important to note that, 18 USC § 1341 requires three elements – scheme to defraud, use of mail, intent to defraud. Your promotional materials with exaggerated claims, each mailing to customer became separate count, and federal prosecutors charged you with twenty counts even though you sent 200 mailings. The DOJ uses mail fraud aggressively, they don’t mess around with these charges, and every UPS package, FedEx delivery, USPS mailing can be separate count. This is is serious because theoretical maximum creates enormous pressure to plead guilty even if you have defenses.

Understanding Mail Fraud Penalties and Sentencing

It’s important to realize that, mail fraud carries up to twenty years per count but actual sentences can be much lower. Base offense level under sentencing guidelines is seven, which can be zero to six months with no criminal history, but loss amount changes everything. $150,000 to $250,000 loss adds ten levels, $1.5 million to $3.5 million adds sixteen levels, and $25 million to $65 million adds twenty-two levels to base offense.

The federal system can be different from what you expect, and in this situation, you’re facing guideline calculations based on total loss amount. Mail fraud with $2 million victim losses can be base level 7 plus 16 for loss amount equals level 23, which can be 46 to 57 months federal prison with no criminal history. This is serious, really serious, and it’s crucial to understand that multiple counts usually don’t change guideline range because loss amount already captures full scope.

Federal prosecutors, they charge fifteen to thirty counts knowing they’ll negotiate to two or three for plea, they use multi-count indictment as leverage, and this multiplication creates theoretical exposure that forces pleas. The first offer can be plead to eight counts, stipulate $3 million loss, guideline calls for seven years. As trial approaches and your attorney identifies weaknesses, offer improves to two counts, $800,000 loss, three years guideline range.

The Financial Institution Enhancement Problem

Your mail fraud case can get worse if it “affects financial institution,” and it’s important to note that, this enhancement jumps maximum from 20 to 30 years per count. Fines can reach $1 million instead of standard amount, and “affects financial institution” gets interpreted broadly by prosecutors. You applied for business loan using falsified statements mailed to bank – that’s affecting financial institution. You deposited fraudulently obtained checks – affects financial institution.

This is designed to protect banks but gets applied even when bank isn’t victim, didn’t lose money, just was involved in scheme somehow. In this situation, if you mailed false financial statements to get loan, even if loan was repaid, enhancement can apply. This is crucial because thirty-year maximum versus twenty-year maximum changes plea negotiations dramatically.

Oh, I should mention disaster relief fraud carries same enhanced penalties. You submitted false FEMA applications after hurricane, used mail to submit – that’s mail fraud affecting disaster relief, enhanced penalties apply automatically. This can be devastating for defendants who thought they were just getting emergency help.

Defenses Against Mail Fraud Charges

Challenging intent is primary defense, and it’s important to realize that, mail fraud requires you “knowingly and willfully” participated in scheme to defraud. Good faith belief in accuracy of your statements, even if wrong, negates intent element prosecutors must prove. If you genuinely believed product claims were accurate, relied on testing data from manufacturer, had reasonable basis for representations – that’s defense against mail fraud.

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 engage in typical marketing exaggeration that’s common in business.

Loss amount fights happen at plea negotiations and sentencing, and prosecutors inflate calculations by including “intended loss” that never materialized. You sent 500 promotional mailers at $1,000 per product, government claims $500,000 intended loss, but 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. This can be critical for your case.

How Mail Fraud Gets Charged

It’s crucial to understand that, “mail” doesn’t mean just USPS – includes UPS, FedEx, DHL, any commercial carrier that crosses state lines. That promotional package sent via FedEx counts, brochure mailed via UPS counts, invoice sent through USPS counts. You don’t have to personally drop it in mailbox – if employee mailed invoices at your direction, that’s sufficient for mail element.

Todd Spodek, second-generation criminal defense attorney with hundreds of federal trials, has seen how prosecutors use mail fraud to pressure pleas. Each piece of mail becomes separate count carrying twenty years theoretical exposure. This is how they create leverage. You’re business owner who sent promotional materials exaggerating product effectiveness, mailed to 200 customers, prosecutors charge twenty counts selecting representative mailings.

In this situation, you’re contractor who sent invoices billing for work not completed, used USPS to mail invoices. Each invoice becomes separate count of mail fraud. Or you submitted insurance claims with inflated damages, mailed claims to insurance company. Each claim submission can be separate mail fraud count. This multiplication effect is serious threat.

Sentencing Guidelines and Actual Prison Time

This is designed to show how loss amount drives sentencing, and it’s important to note that, these are guidelines not mandatory. Judges can vary upward or downward based on factors, but guidelines anchor sentencing decisions.

More than ten victims adds two levels, sophisticated means like shell companies adds two levels, leadership role adds four levels. These enhancements can be stacked, turning three-year guideline into five-year guideline quickly. This is why experienced defense matters.

Constitutional Challenges in Mail Fraud Cases

It’s important to realize that, Fourth Amendment challenges can work if FBI searched without warrant or exceeded warrant scope. Evidence obtained illegally gets suppressed, and sometimes suppressing key documents collapses government’s case. Fifth Amendment protections matter if agents interrogated you without Miranda warnings, continued questioning after you invoked right to remain silent.

We take comprehensive approach challenging every aspect of government’s case, from warrant validity to interrogation tactics to evidence handling. Todd Spodek handles cases across U.S. Attorneys’ Offices nationwide andcontext has seen how different districts calculate loss amounts differently. This experience matters when challenging government’s inflated numbers.

In this situation, “insufficient evidence” defense challenges government burden to prove every element beyond reasonable doubt. If evidence shows errors but doesn’t prove intentional fraud, if your business practices were aggressive but not criminal, government hasn’t met burden. This can be difference between conviction and acquittal.

Why Multiple Counts Don’t Always Matter

Number of counts you plead to matters differently than most think. Pleading to three counts versus twenty counts typically doesn’t change guideline range because loss amount and victim count already capture full scope. But multiple counts affect supervised release violations later, create worse record for immigration consequences, impact professional licensing.

It’s crucial to understand that, federal prosecutors routinely charge fifteen to thirty counts knowing they’ll negotiate down. The multi-count indictment creates enormous pressure – you see “facing 400 years” in news articles. This is negotiation tactic. First offer might be eight counts, seven years. Final plea might be two counts, three years. Period.

Oh, I should mention again that 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 in scheme. Invoice mailed, email printed and mailed, FedEx package sent – all qualify.

Frequently Asked Questions About Mail Fraud Penalties

What level of crime is mail fraud?

Mail fraud is federal felony under 18 USC § 1341, carrying up to twenty years federal prison per count, or thirty years if affecting financial institution. It’s important to realize that, this is serious felony offense prosecuted in federal court, not state court. Each mailing can be charged as separate count, so twenty mailings can be twenty counts with 400 years theoretical maximum. Federal prosecutors use this multiplication to create leverage for plea negotiations. Unlike state fraud charges that might be misdemeanors or low-level felonies, mail fraud is always serious federal felony with significant potential penalties.

What are the consequences of mail fraud?

Consequences of mail fraud conviction can be severe – federal prison time based on loss amount, criminal record that can’t be expunged, supervised release after prison, restitution orders requiring full repayment to victims. Professional licenses can be revoked, immigration consequences for non-citizens including deportation, inability to own firearms, difficulty finding employment with federal fraud conviction. It’s important to note that, sentencing guidelines base punishment primarily on loss amount – $2 million loss typically means 46-57 months federal prison. Beyond criminal penalties, civil lawsuits from victims, IRS audits and tax consequences, loss of professional reputation can follow conviction. These collateral consequences often last longer than prison sentence itself.

How long do you go to jail for mail fraud?

Actual prison time for mail fraud depends on loss amount, not theoretical maximum of twenty years per count. With $150,000 to $250,000 loss, typical sentence can be 18-24 months. With $1.5 to $3.5 million loss, expect 46-57 months. Losses over $10 million can result in 78-97 months or more. It’s crucial to understand that, first-time offenders with smaller losses sometimes get probation, while repeat offenders or those with aggravating factors face longer sentences. Cooperation with government, acceptance of responsibility, restitution before sentencing can reduce prison time significantly. Multiple counts don’t usually increase sentence because guidelines already account for total loss amount.

What You Should Do If Facing Mail Fraud Charges

If federal agents contacted you about mail fraud, you need immediate legal representation. Don’t talk to investigators thinking you can explain, don’t provide documents without attorney review, don’t discuss case with anyone except your lawyer. This is serious federal investigation that requires experienced defense counsel immediately.

Gather all relevant documents but don’t alter or destroy anything – that’s obstruction of justice, separate federal crime. Review what you mailed, to whom, what representations were made. Identify potential defenses like good faith belief in accuracy, reliance on professional advice, lack of intent to defraud.

Contact Todd Spodek at 212-300-5196 if you’re facing mail fraud charges infront of federal judge. With hundreds of federal trials, experience across U.S. Attorneys’ Offices nationwide, knowledge of how prosecutors calculate loss amounts and negotiate pleas, we can protect your rights and work toward best possible outcome.

This is too serious to handle alone. Federal prosecutors have unlimited resources, use mail fraud multiplication to create massive theoretical exposure, pressure defendants into unfavorable pleas. You need someone who understands this system, knows these prosecutors, can identify weaknesses in government’s case.

It’s important to realize that, early intervention can be difference between favorable plea and trial with devastating sentence. The window for negotiation exists but closes as trial approaches. Don’t wait, don’t hope it goes away, call 212-300-5196 now.