Understanding Federal Fraud In NYC: What It Is and How It Affects You

Finding yourself accused, under arrest, or under investigation for federal fraud charges in New York City can be a terrifying and overwhelming experience. Due to the vast financial landscape of the city, thanks to being home to Wall Street and countless tech startups, federal fraud in NYC is rampant. If you are facing these kinds of charges, it is vital that you seek the assistance and representation of an experienced and professional New York City federal fraud lawyer.

At the Law Office of Jonathan Savella, our attorneys have over two decades of experience fighting these charges. From the Daniel Patrick Moynihan United States Courthouse on Pearl Street, covering Manhattan and the Bronx, to the Theodore Roosevelt United States Courthouse, covering Brooklyn, Queens, and Staten Island on Cadman Plaza East, we have the experience necessary to protect your rights, freedoms, and future when it comes to federal fraud.

Defining Federal Fraud Charges in NYC

In the United States, fraud crimes can come under federal jurisdiction when they violate United States federal law or occur across multiple state lines. Federal fraud includes a vast number of offenses, each coming with its own set of legal implications and penalties.

It is crucial to understand these charges as you prepare for court and begin to build a legal defense strategy with your attorney. The most common federal fraud charges in New York City can include:

• Mail fraud. This kind of fraud involves the use of the United States Postal Service or other similar mail carriers to commit a fraudulent scheme. This is one of the most commonly prosecuted fraud offenses in the United States. Between the years 2021 and 2023, check fraud via the mail has nearly doubled. With millions of people living in NYC and using the mail, this kind of fraud is on the rise in the city.
• Securities fraud. NYC is home to the New York Stock Exchange, making the city a hotspot for this kind of fraud. Securities fraud typically includes a wide range of illegal behaviors and activities, such as stock manipulation or insider trading, which work to deceive investors or manipulate the financial market.
• Bank fraud. New York City plays host to a high number of banks and financial institutions, such as Citigroup and JPMorgan Chase. Banks and financial institutions are particularly victimized by fraudulent schemes, including credit or debit card fraud, check fraud, loan fraud, and other deceptive acts that people can commit to secure money or assets under misinformation or false information.
• Wire fraud. This kind of fraud can occur when an individual or entity uses certain modes of electronic communication to commit acts or schemes of fraud. It can become a federal case when the communications occur over state lines. These forms of communication can include text messages, phone calls, emails, or social media messages. In 2023 alone, $12.5 billion was lost in acts of cybercrime, wire fraud included.
• Healthcare fraud. This form of federal fraud can occur when an individual or entity seeks to defraud and exploit the healthcare system. This can include the targeting of Medicaid, Medicare, or private insurance companies. Acts of healthcare fraud can include billing for services you did not actually receive, prescription fraud, upcoding, or duplicate billing.

Penalties You Could Face If Convicted

When you find yourself facing charges of federal fraud in New York City, it is important to understand how a successful conviction could potentially affect you. There are several punishments or consequences for fraud, including the following:

• Prison time. For a federal fraud crime, including bank fraud, you could face up to 30 years in federal prison. Your sentence will ultimately depend on the severity of your crime, the laws that were violated, and if you have a criminal history.
• Probation. While this could keep you out of jail, probation would still severely limit your personal freedoms. You must obey certain conditions, such as taking drug tests at random and reporting to your probation officer.
• Fines. Many individuals who commit federal fraud could face substantial fines depending on the severity of the crime and the amount of money that was involved.
• Reputational harm. Those who are convicted of federal fraud crimes beyond the legal penalties or fines, prison time, or probation can also expect to suffer severe harm to their reputation. You might find it difficult to maintain or find new and stable employment, and it may become difficult to maintain certain personal or professional relationships.

FAQs

Q: Who Investigates Federal Fraud?

A: In most cases of federal fraud, the Federal Bureau of Investigation will handle the investigation into these charges. However, depending on the nature of the alleged fraud, other agencies can become involved, including the Internal Revenue Service, the Office of Inspector General, the Federal Trade Commission, or the Department of Justice.

Q: What Factors Influence Financial Penalties for Fraud?

A: For fraud cases, several factors can become involved, which can influence the financial penalties a defendant may face. These factors can include the financial impact of the fraud, the total money lost, the role the defendant played in the scheme, and whether the defendant has committed fraud before. A lawyer can review your specific case and determine what the most influential facts may be.

Q: What Are Some Aggravating Circumstances in Fraud Cases?

A: In some federal fraud cases in New York City, certain aggravating circumstances can cause one to face sentences that are more severe. These circumstances can include the number of victims involved, the amount of money that was involved, the amount of loss that occurred, and the scale of the fraud itself.

Q: What Are Restitution Payments for Fraud Cases in NYC?

A: In some federal fraud cases in NYC, a convicted individual will be required to pay restitution. These payments will act as compensation for the victims who suffered financial losses because of the convicted fraudulent acts. For example, if an individual found out that their home builder was using their payments to build the home of another, they would be entitled to restitution payments from the home builder.

Find a Trusted and Experienced NYC Federal Fraud Lawyer Today

If you are facing charges of federal fraud crimes in New York City, the legal team at the Law Office of Jonathan Savella is here for you. Reach out to us today for an initial consultation.