Legal Definitions - wire fraud

Wire fraud is a federal crime that occurs when someone intentionally devises a scheme to deceive another person or organization to obtain money, property, or valuable services through dishonest means, and uses electronic communications that cross state lines to carry out or advance that deception.

To put it simply, it's a type of fraud where the perpetrator uses modern communication methods like emails, phone calls, faxes, or internet transmissions (which inherently cross state boundaries) as a tool to trick someone into giving them something of value.

• Example 1: The Fake Investment Opportunity

  A scammer creates a sophisticated website and sends out thousands of emails to potential investors across the country, promoting a fictional "revolutionary green energy project." The emails promise incredibly high, guaranteed returns on investment. Interested individuals, located in various states, are instructed to wire money to a bank account controlled by the scammer. After collecting millions, the scammer disappears, and the investors realize their money is gone.

  How it illustrates wire fraud: The scammer engaged in a scheme to defraud by creating a fake investment and making material misstatements about its legitimacy and returns. The scheme resulted in the loss of money for the investors. Crucially, the scammer used electronic communications (emails and the internet) to solicit funds and direct wire transfers across state lines, which are considered "interstate wirings" in furtherance of the fraudulent scheme.

• Example 2: The Impersonated CEO Email Scam

  An employee in the accounting department of a company based in New York receives an urgent email, seemingly from their CEO, who is currently traveling in California. The email instructs the employee to immediately wire a large sum of money to an overseas vendor for a "confidential acquisition." The email address looks legitimate, but it's a subtle spoof. The employee, believing it's a genuine request from their CEO, initiates the wire transfer.

  How it illustrates wire fraud: This is a scheme to defraud where the scammer impersonated the CEO and made a material misstatement (the false acquisition and urgent payment request). The scheme resulted in the company losing money. The scammer used electronic communication (email) to transmit instructions across state lines (from where the scammer sent the email, to New York, and potentially to California where the CEO was believed to be), directly causing the wire transfer to occur.

• Example 3: The Online Rental Property Hoax

  Someone posts an advertisement on a popular national online classifieds website for a beautiful apartment for rent in Miami, Florida, at an unbelievably low price. The scammer, who lives in Georgia, does not own the property and has no right to rent it. When interested parties from states like Ohio and Texas inquire, the scammer communicates with them via email and text messages, requesting a security deposit and first month's rent be wired immediately to "secure" the apartment before they can view it. Several individuals wire the money, only to find the apartment is not available or does not exist when they arrive.

  How it illustrates wire fraud: The scammer devised a scheme to defraud by advertising a non-existent rental property and making false claims about its availability and the need for immediate payment. This scheme led to the loss of money for the victims. The scammer used electronic communications (online classifieds, email, and text messages) that crossed state lines to solicit and receive funds, thereby furthering the fraudulent scheme.