28 Feb Wire Fraud Can Land You in Prison
When former local ABC news anchor Stephanie Hockridge and her husband Nathan Reis, were arrested for wire fraud you were most likely wondering what that means. While we wait for their trial, let us explain the details of wire fraud. They were accused of using their company, Blueacorn, to process fraudulent loan applications to the Paycheck Protection Program as a part of the COVID relief.
But what exactly is wire fraud? And how does Arizona punish this crime? We take a closer look at the consequences of committing wire fraud below.
What Is Wire Fraud?
Wire fraud is the criminal act of using electronic communication, like online portals, e-mail, phone calls, texts, or social media to deceive and defraud another person. It is categorized as a type of cybercrime, although it is not one of the most common ones.
2 Examples of Wire Fraud:
1: While working for a company that processes loans for other companies an employee slips in a loan for a company that does not exist. When the loan goes through they pocket the money.
2: A person applies for a credit card online using false employment information.
To convict someone of wire fraud, the prosecution must prove that the acts were committed with the intent to defraud.
How Is Wire Fraud Punished in Arizona?
In Arizona, there are two statutes that determine the consequences of wire fraud. The first is the Arizona penal code, and the second is federal law. According to both, wire fraud is a felony, and punishable with a term in prison.
Arizona State Law
According to the Arizona penal code, wire fraud is a class 2 felony. That means that there is an automatic prison sentence. The length of that sentence can range from 3 years up to 35, depending on the number of prior felony convictions. Along with time in prison, the convict might also need to pay restitution to the victim, as well as fines and court fees.
Federal Law
The United States Code gives different parameters for prison terms and repayments. For example, the maximum prison term for a first-time offender is up to twenty years. But it can go as high as 30 years if the crime involves a government-funded institution.
The code also stipulates that the payback amount can be up to $250,000, even if the initial amount defrauded was smaller. If the crime was against a government-backed program, the repayment can be up to 1 million dollars.
The federal government also recently enacted the False Claims Act. This act helps protect the federal government from fraud, and it is a separate charge that can be added on to charges of wire fraud. At the moment, fines are capped at three times the amount stolen, with repayment amounts adjusted for inflation.
Criminal Defense Lawyer in Arizona
A felony conviction has other consequences besides a prison sentence. Convicted felons lose the right to vote, and they are no longer eligible for state or federal social benefits. A criminal record also comes with a stigma that makes it difficult for many convicted felons to find employment or housing.
If you need to defend yourself against felony charges, you need a certified criminal defense attorney on your side. The court-appointed attorneys are often overworked, and large law firms tend to hand off most cases to their less experienced lawyers.
Here at Todd Coolidge Law Firm, we believe in handling every case with care and diligence. Todd Coolidge has over 25 years of experience in the Arizona criminal courts, and his testimonials speak for themselves. Contact us today for a consultation on your case.
Images used under creative commons license – commercial use (2/28/25). Photo by Tianyi Ma on Unsplash.