The Ultimate Guide to the Federal Mail Fraud Statute

The federal mail fraud statute is one of the most potent weapons in the U.S. Department of Justice’s (DOJ) law enforcement arsenal. Not only is the federal mail fraud statute extremely broad in scope, but it also imposes substantial penalties. As a result, the DOJ can pursue charges under the statute in a wide range of circumstances, and these charges can present substantial risks for defendants who may be facing other federal charges as well.

Defendants targeted in federal investigations (and their counsel) need to have a thorough understanding of the mail fraud statute, 18 U.S.C. Section 1341. Broadly, the statute criminalizes using the mail (or a private carrier) in connection with the commission—or attempted commission—of any other federal fraud crime. It applies to individuals and entities that both send and receive mail, and it even allows for prosecution of mail carriers in some circumstances.

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The Federal Mail Fraud Statute (18 U.S.C. Section 1341): An Overview

The federal mail fraud statute is somewhat unique in that it allows for prosecution without proof that the defendant committed a substantive offense. In this regard, it is similar to the federal wire fraud statute and the federal statutes that criminalize attempt and conspiracy.

As a result, the DOJ can use the statute either in stand-alone prosecutions or as an add-on offense. While it is not uncommon for individuals to face charges solely for mail fraud, it is equally likely that individuals charged with mail fraud will also be charged with other federal crimes. Whether these additional charges are for attempt, conspiracy, or a substantive fraud crime such as healthcare fraud or securities fraud depends on the circumstances involved.

To begin our discussion of the federal mail fraud statute, we can look at the language of the statute itself. Under 18 U.S.C. Section 1341:

“Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses . . . or attempting so to do, places in any post office or authorized depository for mail matter, any matter or thing whatever to be sent or delivered by the Postal Service, or deposits or causes to be deposited any matter or thing whatever to be sent or delivered by any private or commercial interstate carrier, or takes or receives therefrom, any such matter or thing, or knowingly causes to be delivered by mail or such carrier according to the direction thereon, or at the place at which it is directed to be delivered by the person to whom it is addressed, any such matter or thing, shall be fined under this title or imprisoned not more than 20 years, or both. . . .”

The federal courts have interpreted 18 U.S.C. Section 1341 to establish four “elements” of the federal offense of wire fraud. To secure a conviction in federal district court, the DOJ must prove each of these elements beyond a reasonable doubt. The elements of a federal mail fraud charge under 18 U.S.C. Section 1341 are:

1. The Defendant Devised in a Scheme or Artifice to Defraud, or Attempted to Do So

The DOJ can prove mail fraud with evidence that the defendant devised or intended to devise a “scheme or artifice to defraud.” It can also prove mail fraud with evidence that the defendant devised or intended to devise a scheme for attempting to commit a substantive fraud. The federal mail fraud statute does not require evidence that the defendant was “successful” in committing a substantive fraud offense, nor does it require evidence that the defendant went through with the scheme or artifice to defraud.

2. The Scheme Involved Material Misstatements or Omissions

To constitute fraud, a scheme or artifice must involve material misstatements or omissions. These are the hallmarks of a substantive fraud offense under federal law. However, these definitions are also extremely broad. Under federal law, material misstatements and omissions can involve everything from including false information on a mortgage application to submitting inaccurate bills to Medicare or Medicaid, and from excluding financial information from a company’s EDGAR filings to omitting information about a debtor’s assets in bankruptcy court.

3. The Scheme Resulted in (or Would have Resulted in) Loss of Money, Property, or Honest Services

Federal fraud charges also require evidence that the defendant’s scheme resulted in (or would have resulted in) loss of money, property, or honest services. Remember, to prosecute for mail fraud, the DOJ does not need evidence that the defendant successfully defrauded any person or company. If the defendant’s scheme had the potential to result in loss to consumers; an insurance company, lender, or other business; or the federal government, the DOJ can pursue mail fraud charges under 18 U.S.C. Section 1341.

4. The Defendant Used the U.S. Mail or a Private Interstate Carrier in Furtherance of the Scheme

The final element of a federal mail fraud charge under 18 U.S.C. Section 1341 is use of the mail or a private interstate carrier (i.e., FedEx or UPS). The statute makes clear that the DOJ can prosecute both individuals who send material and individuals who receive mail in connection with a fraudulent scheme. It also allows for the prosecution of mail carriers who “knowingly cause[] to be delivered” mail sent in furtherance of an attempted fraud.

Penalties for Mail Fraud under 18 U.S.C. Section 1341

As we noted in the introduction, the penalties for mail fraud under 18 U.S.C. Section 1341 are severe. While using the mail in furtherance of a federal crime may seem like a relatively minor offense in comparison to committing the crime (or attempting to commit the crime) itself, mail fraud carries greater penalties than many substantive federal fraud offenses.

In most cases, the penalties for mail fraud include:

• Statutory fines (determined in accordance with 18 U.S.C. Section 3571 and the Federal Sentencing Guidelines); and/or
• Up to 20 years of federal imprisonment.

However, the mail fraud statute calls for even more severe penalties in some cases. Specifically, in cases involving fraud affecting a financial institution or committed in connection with a presidentially declared major disaster or emergency, mail fraud carries up to a $1 million fine and 30 years behind bars.

Defenses to Prosecution Under the Federal Mail Fraud Statute

Despite its breadth, there are several potential defenses to prosecution under the federal mail fraud statute. Broadly, these defenses fall into three categories: (i) challenging the DOJ’s evidence of individual “elements” of mail fraud; (ii) challenging the constitutionality of the federal government’s investigation; and, (iii) asserting procedural defenses related to the prosecution of the government’s case.

As with all federal white-collar crimes, the DOJ has the burden of proving a defendant’s guilt for mail fraud beyond a reasonable doubt. If the DOJ cannot meet its burden of proof—whether because its evidence is lacking or because its evidence is inadmissible in court—the defendant is entitled to walk free regardless of the facts at hand. Similarly, if procedural flaws in the prosecution of the government’s case deny a defendant’s right to a fair and speedy trial, this can also warrant dismissal of a federal mail fraud charge regardless of the underlying circumstances.

With these overarching principles in mind, some examples of potential defenses to charges under the federal mail fraud statute include:

• Inadequate Evidence of a Scheme or Artifice to Defraud – To secure a conviction under 18 U.S.C. Section 1341, the DOJ must be able to prove that the defendant devised (or intended to devise) a scheme or artifice to defraud. If the DOJ cannot prove a defendant’s involvement in a scheme or artifice to defraud, then it is irrelevant whether the defendant sent or received any material through the mail.
• Unconstitutional Search or Interrogation – Unconstitutional searches and interrogations can sink federal prosecutions for mail fraud and other crimes. If federal agents violate a suspect’s constitutional rights during a search or interrogation (i.e., by conducting an invalid warrantless search or failing to read the suspect’s Miranda rights), then all evidence obtained as a result of the violation may be inadmissible in court.
• Unconstitutional Seizure of Mail or Other Evidence – Unconstitutional seizures of mail and other items can provide defenses to prosecution as well. Evidence obtained in violation of a suspect’s constitutional rights is generally inadmissible in court.
• Procedural Errors Resulting in an Unfair Trial – Withholding evidence, unnecessarily delaying trial, and other procedural errors can provide defenses in federal white-collar cases as well. When you engage experienced defense counsel to represent you, your defense counsel will evaluate all potential defenses and work to protect you by all means available.

Contact the Federal Defense Lawyers at Oberheiden P.C. About Your Mail Fraud Case

If you are under federal investigation or facing charges for mail fraud, we encourage you to contact us promptly for more information. We have extensive experience defending clients against these charges during federal investigations, in grand jury proceedings, and at trial. For a free and confidential consultation, call 888-680-1745 or request an appointment online now.