Bank fraud, wire fraud, and mail fraud are federal charges that can arise from the same underlying conduct, and each carries serious consequences for anyone facing them in South Carolina.
Below, Greg McCollum explains what separates these charges, why they end up in federal rather than state court, and what the terminology actually means. If you or someone you know is under investigation or has been charged with one of these offenses, understanding the basics is the first step.
Frequently Asked Questions
What is bank fraud?
Bank fraud is a federal crime because banks are federally chartered. If someone is accused of misusing the bank system or perpetrating a fraud on the bank, where the bank or someone else loses money through the banking system, the person can be indicted and charged with bank fraud.
Often, bank fraud includes other activities, such as mortgage fraud, though these different terms effectively describe the same underlying issue. Most fraud cases in federal court are handled similarly, involving the same loss schedules for sentencing guidelines and the same elements of proof.
Ultimately, bank fraud is simply a term used when someone commits a type of fraud within the money system that affects or involves the use of a federally chartered bank.
What is wire fraud?
Wire fraud is the use of an electronic communication. In the federal system, there’s wire fraud and there’s mail fraud; basically, it’s just fraud. The reason it’s called wire fraud or mail fraud is because, historically, the federal courts were not allowed to become involved in state matters.
Federal courts were there for a different reason than the states were, and because the federal courts were allowed to get involved in things that affect interstate commerce, that’s the constitutional provision which allows it. Wire fraud is something that crosses state lines.
It’s really just a jurisdictional issue in federal court, hence the term. It’s really just theft and fraud; they call it wire fraud because that’s what makes it a federal crime. It’s really just more of a technicality than anything else.
What is mail fraud?
Mail fraud is just the vehicle which allows the federal government to prosecute somebody for fraud. Historically, in cases if someone perpetrated a fraud, or was accused of a theft or embezzlement, or anything of that nature, they would be prosecuted in state courts.
If somebody had set up a scheme where they were defrauding people in multiple states, then that would be beyond the state’s jurisdiction to handle the case properly. Hence, the federal courts were allowed to step in and do something about it, not unlike kidnapping across state lines.
The reality of it, though, is that it’s just a fraud or theft case, and the federal government and courts use that concept to allow themselves to have jurisdiction to prosecute the case in something that was not an area, historically, that the federal government was involved in.
Facing a federal fraud charge in South Carolina is different from facing a state charge, and the stakes are high. Greg McCollum has roughly 30 years of legal experience, including time as a former prosecutor, which gives him insight into how these cases are built and argued from both sides.
If you have questions about bank fraud, wire fraud, or mail fraud charges, call the Greg McCollum Complete Legal Defense Team at (843) 626-5480. Consultations are confidential.
