Source: https://www.shouselaw.com/mail_fraud.html
Timestamp: 2019-04-23 17:01:03+00:00

Document:
The term "mail fraud" or "postal fraud" can actually be a little misleading. It sounds like it would mean a fraud that is carried out entirely or primarily through the mail. But, in fact, the role that "mail" plays in a "mail fraud" scheme can often be rather minor. As we'll explain in more detail below, the "mail" aspect of mail fraud just gives the federal Department of Justice (as opposed to individual states) the right to prosecute and imprison people for carrying out fraud.
Because mail fraud is a federal crime in California, not a state crime, you will need the help of a criminal defense attorney who is licensed to practice in the United States federal courts.
Fortunately, there are multiple legal defenses that you may be able to assert if you are accused of mail or postal fraud.
Many people have heard the word "fraud" but aren't sure exactly what it means. There are a wide variety of California criminal fraud laws and corresponding federal laws that can cover a wide range of misconduct.
For the purposes of the federal crime of mail fraud, fraud means: the knowing or reckless misrepresentation of a material fact in order to deprive someone else of something valuable. 5 In other words, fraud is lying to someone in order to get them to give up something they value (usually money).
Example: Ralph owns a ranch in Oklahoma that he wants to subdivide and sell. He sends letters to hundreds of individuals offering them the chance to buy a piece of his ranch. The letters say that an investor from Houston, Texas, is interested in drilling for oil on the property and will pay the buyers a large sum for drilling rights. But, in fact, there are no investors interested in drilling on the land. This is a material misrepresentation and could be fraud.
Example: Let's say it is true that an investor has expressed interest in drilling for oil on the ranch. But the investor is not from Houston, Texas...he's from Dallas. This is probably not a material misrepresentation that could lead to Ralph being charged with fraud.
The misrepresentation also has to be designed to deceive someone of "ordinary prudence"-that is, someone with a reasonable degree of common sense. So, if the lie was so outrageous that a normally prudent person would never have believed it, the prosecutor may not be able to make mail fraud charges stick.
Example: As a practical joke, Ralph sends letters to hundreds of people offering them a chance to buy plots of land in a new colony on Mars by sending him checks. It is possible that he will not be convicted under the federal mail fraud laws...because his scheme would not have fooled anyone of "ordinary prudence."
Example: Sam wants to open an expensive restaurant in Los Angeles. He is looking for investors to put money into the project. He sends a letter to potential investors telling them that Brad Pitt, the movie star, has expressed interest in investing in the project. But he does not tell them that, after expressing interest and looking into the idea further, Brad Pitt has already decided not to invest in it.
Sam did not actually say anything that was untrue...but he may have committed mail fraud anyway. This is because he is misleading potential investors by failing to disclose the important fact that Brad Pitt chose not to invest in the restaurant.
In the above examples, Ralph and Sam may be charged with mail fraud even if none of the people they sent letters to actually took the bait and gave them money. This is because the crime of mail fraud does not require that the scheme to defraud be successful. 9 All that's required for someone to be tried and convicted for mail fraud is that they use the mail to try to pull off a fraud.
Example: Tom is a government official whose job involves deciding what construction companies will get lucrative contracts to build new schools. Jerry owns a construction company. They make a deal in which Tom agrees to steer contracts to Jerry's company, and Jerry in return gives 25% of the profits from these contracts back to Tom.
This is a kickback. If Tom and Jerry use the mail to discuss their deal or put it into practice, they may be charged with mail fraud.
If someone commits fraud entirely through face-to-face interactions, they can't be charged under federal mail fraud laws. This may seem a little silly-fraud is fraud; why should it matter whether it is committed in person or through the mail?
The reason use of the mail matters is because mail fraud is a federal crime. The United States Constitution doesn't allow the federal government to make just anything a crime. But the so-called "Commerce Clause" of the Constitution allows the federal government to regulate commercial activity that's carried out between different states. 13 Because the mail is considered a form of commerce between the states, the federal government can punish behavior that involves the mail.
Example: James travels around the country trying to sell popcorn machines. He takes money from people who want to buy the machines but then never delivers the machines. He meets Clifford at a marketing presentation. They talk about the machine face-to-face. Then Clifford hands James a check.
James later sends Clifford several pieces of mail confirming his order and telling him (falsely) that the reason he doesn't have his popcorn machine yet is because bad weather delayed the delivery.
Example: John works for a company (FraudCo) that is trying to get a contract to supply materials for a nuclear power plant. In order to get the contract, he gives the company that is building the plant (NukeCo) fake test reports that are supposed to show that Fraudco's materials were up to standard.
Example: Pete invents a new kind of juicer. He sends flyers in the mail marketing his juicer to potential customers. These flyers say that Pete's invention juices an orange twice as fast as any other juicer on the market. But in reality Pete has not tested his juicer against the other juicers on the market and has no way of knowing whether this actually true.
Pete did not lie per se in his letters...but he may still be charged with mail fraud, because his statements showed a reckless indifference to the truth.
An experienced attorney can help you assert various legal defenses against a mail fraud charge. These may be asserted during your trial or as part of the federal criminal appeals process, if you are convicted and file an appeal.
Two of the most important potential defenses to mail fraud are lack of intent, and mistake of fact.
"The specific intent requirement is very important because mail fraud often involves complicated schemes that are hatched in a business environment. It's easy for innocent people to get caught up in a fraudulent scheme that is actually run by, say, their supervisor at work, without really understanding what is going on. Unless the prosecutor can show beyond a reasonable doubt that you specifically intended to help with the fraud, you can't be found guilty."
Example: James from our earlier example, who travels around the country selling popcorn machines that will never be delivered, has a wife, Joan. Joan has only a ninth grade education and worked as a waitress before marrying James. Now she works as the secretary for his company. She answers the phone and writes and sends letters to James' "customers." But she has no idea that James' business is built on fraud and that his customers will never receive their popcorn machines.
Mistake of fact as a criminal defense applies to a number of different crimes, including mail fraud. It can be especially helpful in a mail fraud case, where the underlying facts might involve complicated business issues and be hard to understand.
Because specific intent is an element of the crime of mail fraud, 22 you cannot be convicted if you can show that you committed the acts in question while you were mistaken about certain key facts. For example, you may have put a misrepresentation into a letter because you mistakenly believed that it was actually true. If this is the case, then the prosecution will not be able to show that you specifically intended to deceive anyone.
Because mail fraud / postal fraud is a federal crime, the penalties may include time spent in federal prison (not the California state prison system).
Sometimes people try to cover their tracks by using a fake name or address when they carry out a mail fraud scheme.
Let's say someone tries to commit mail fraud by writing a fraudulent letter and giving it to his or her assistant to mail...but then the assistant gets suspicious, opens the letter, and calls the authorities instead of dropping it in the mailbox. This unsuccessful attempt to commit mail fraud is an attempted crime in California.
Likewise, anyone who participates in a criminal conspiracy (Penal Code 182 in California) to commit mail fraud can be punished just as if they had committed mail fraud themselves. 28 So, for example, if three people get together and make plans for a fraudulent scheme that involves use of the mail, but only one of them actually sends and receives the letters involved in the fraud...all three of them may still be prosecuted for mail fraud.
Securities fraud laws prohibit a wide range of behavior involving investment securities, including making false or misleading statements in connection with a sale or purchase of securities. 30 Thus, if someone uses the mail to advance a fraud involving securities, with the intent of defrauding someone else, they may be charged with both mail fraud and securities fraud.
The difference between mail fraud and wire fraud is that, instead of a use of the mail, wire fraud requires a use of radio, television, or wire communications in furtherance of the scheme to defraud. 35 Because an elaborate fraud scheme may involve both use of wire communications like the telephone and the use of mail, wire fraud and mail fraud are often charged together.
Internet fraud, also known as cybercrime, is a catch-all term that covers any fraudulent scheme carried out through the internet.
Depending on the facts of the particular case, a person could be charged with mail fraud in federal court AND with another form of fraud in the California courts.
If you or a loved one is charged with mail fraud and you are looking to hire an attorney for representation, we invite you to contact us at Shouse Law Group. We can provide a free consultation in office or by phone. We have local offices in Los Angeles, the San Fernando Valley, Pasadena, Long Beach, Orange County, Ventura, San Bernardino, Rancho Cucamonga, Riverside, San Diego, Sacramento, Oakland, San Francisco, San Jose and throughout California.
To learn about mail fraud and other federal crimes in Nevada, go to our pages on federal laws for "mail fraud" in Nevada and on federal crimes in Nevada.
3 Our California and federal criminal defense attorneys defend clients accused of mail fraud. We have local Los Angeles law offices in Beverly Hills, Burbank, Glendale, Lancaster, Long Beach, Los Angeles, Pasadena, Pomona, Torrance, Van Nuys, West Covina, and Whittier. We have additional law offices conveniently located throughout the state in Orange County, San Diego, Riverside, San Bernardino, Ventura, San Jose, Oakland, the San Francisco Bay area, Sacramento, and several nearby cities.
15 United States v. Price, (9th Cir. 1980) 623 F.2d 587, 590 (overruled on other grounds by United States v. De Bright, (9th Cir. 1984) 730 F.2d 1255, 1259).
20 Santa Ana criminal defense attorney John Murray handles writs and appeals in federal court as well as California courts.
21 United States v. Price, (9th Cir. 1980) 623 F.2d 587, 591-92 (overruled on other grounds by United States v. De Bright, (9th Cir. 1984) 730 F.2d 1255, 1259).
36 18 U.S.C. § 1343 - Fraud by wire, radio, or television.
37 See United States v. Selby, (2009) 557 F.3d 968, 979.
38 See Internet Crime Complaint Center, 2010 Internet Crime Report.
39 See Penal Code 530.5 PC - Unauthorized use of personal identifying information of another person; attempt to obtain credit, goods, services, real property or medical information; commission of crime; punishment for first, subsequent or multiple offenses; sale of information; mail theft; liability of computer service or software providers; Penal Code 484e PC - Theft of access cards or account information; Business & Professions Code 22948.2 BPC - Unlawful requests by misrepresentation; 18 U.S.C. § 1028 - Fraud and related activity in connection with identification documents, authentication features, and information; 18 U.S.C. § 1029 - Mail fraud and related activity in connection with access devices; Penal Code 502 PC - Unauthorized access to computers, computer systems and computer data; and 18 U.S.C. § 1030 - Fraud and related activity in connection with computers.

References: v. 
 v. 
 v. 
 v. 
 § 1343
 v. 
 § 1028
 § 1029
 § 1030