federal fraud case
US prosecution for fraud under the federal wire fraud and mail fraud provisions
A federal fraud case is, in US law, a criminal prosecution brought by federal authorities for fraud committed through false representations or promises with the aim of obtaining money or property. The term is not a single fixed statutory provision but in practice typically covers charges under two central federal provisions: wire fraud and mail fraud.
The wire fraud provision prohibits any systematic scheme to defraud others when the scheme is carried out through electronic communication channels across state lines — including telephone, internet and email. The mail fraud provision is parallel, but concerns the use of the US postal service as part of the fraud. The decisive element in both provisions is the so-called 'scheme or artifice to defraud': a planned and deliberate arrangement in which the perpetrator uses false identities, information or promises to mislead victims and obtain an unjustified gain.
In cases such as that of Derek Alldred — who used false names, invented military backgrounds and fabricated emergencies towards women he met through dating apps — the use of telephone and internet can be precisely the element that lifts a case from state level to federal level. A federally charged fraud case is typically investigated by the FBI and tried before a federal court, which distinguishes it from comparable cases handled solely under the states' own fraud laws. The maximum penalty for wire fraud is up to 20 years' imprisonment per count under normal circumstances.
