Criminal Fraud Lawyer in Greenville, South Carolina

What are Fraud Charges?

Fraud is a type of white collar crime that entails a range of illegal activities that vary in the severity of the damage caused to victims. Many people think fraud is considered theft, but there is a difference between the two crimes. Something stolen stealthily or forcefully is a theft. In comparison, fraud occurs when facts are purposely misrepresented to obtain something valuable, like money or property, from a victim. 

To be found guilty in a criminal case, the fraud must be proven “beyond a reasonable doubt.” Possible penalties for conviction are fines, probation, and jail time. These offenses may either be misdemeanors or felonies. If federal law is broken, federal criminal fraud charges may also result. 

Some methods of fraud include:

• Financial Statement Deception – This is purposefully over or understating balances on financial statements to make a company appear in a better financial position.
• Asset Misappropriation – Asset misappropriation is the theft or misuse of company assets. Asset misappropriation is divided into two categories: cash and non-cash. Examples of asset misappropriation are theft of cash, check tampering, or inflated invoices. 
• Breach of Trust – Breach of trust occurs when a trustee causes harm to trust assets or beneficiaries through negligent or intentional, erroneous, self-serving, or retaliatory actions.
• Bribery – Giving or offering something of value (often money) to an elected official or government worker, or officer in exchange for a favor is defined as bribery under the South Carolina Criminal Code. It is also bribery if the person in a position of power requests something of value. 
• Corruption – Corruption goes hand-in-hand with bribery. It is dishonest behavior by persons in positions of power. This offense includes accepting or giving bribes, money laundering, election manipulation, defrauding investors, and other fraudulent acts. 

Types of Frauds in Law

There are many ways of committing fraud. Among the most common are: 

Check Fraud

This is also known as writing bad or “hot” checks. It’s when a check is written and given in exchange for goods knowing there are no funds to cover the check. 

Tax Fraud

Tax fraud is underpaying or deliberately failing to pay taxes due to a business or individual filing tax returns with false information. 

Wire Fraud

Wire fraud is a federal crime that applies to multiple activities, including when someone uses an electronic communication device, a computer with Internet access, or a phone to defraud others. 

Mail Fraud

Mail fraud is among the most commonly charged federal crimes. Fraudulent activities using the United States Postal Service or other interstate delivery companies are considered mail fraud. An example of mail fraud is when an individual sends a letter to a victim to scam money from them. Using the mail to commit fraud is illegal and violates the federal mail fraud law, whether the crime is successful or not.

Health Care Fraud

False billing claims filed with Medicaid, Medicare, or health insurance companies are considered health care fraud. Examples include charging inflated prices for a medical procedure or requesting payment for an unadministered treatment.

Mortgage and Bank Fraud

Obtaining funds or property from a financial institution or depositors through fraudulent acts. 

Internet Fraud

This is when an individual uses the internet to exploit or defraud others. This term typically includes any cybercrime that occurs via the internet or email. It includes phishing, hacking, spoofing, malware and ransomware, and identity theft designed to obtain money from victims. 

Credit Card Fraud

Fraudulently getting, using, or forging a credit card is credit card fraud. 

Some other examples of fraud include bankruptcy fraud, charity fraud, insurance fraud, Ponzi schemes, racketeering, and securities fraud.

Criminal Fraud vs Civil Fraud

Both civil and criminal laws address fraud. This means that fraud victims can file civil lawsuits, while the government may pursue criminal charges. As such, it’s not unusual for a person to face criminal prosecution and civil action for the same offense. Civil action for fraud cases, or any criminal case for that matter, require a lower level of proof than criminal action. Common punishments are restitution (returning the victim’s money) and monetary damages. Civil lawsuits filed against businesses by the Securities and Exchange Commission (SEC) or the Federal Trade Commission (FTC) typically request restitution to victims, fines, and injunctions.

Both civil and criminal fraud cases contain several elements. These elements include:

• A material fact is misrepresented
• The accused knew they had misrepresented the facts
• Facts were falsified on purpose to fool the victim
• The victim trusted and relied on that representation
• Fraudulent actions damaged the victim

Fraud doesn’t have to be successful for a person to face criminal charges. However, a victim must suffer actual damages for a successful civil case to take place.

Is Fraud a Federal Crime?

Federal and state laws prohibit fraud. The crime can be either a federal or state offense or both, depending on the facts of the case. In other words, a person can violate state and federal laws at the same time when they commit fraud. 

The federal government may prosecute a fraud case according to these factors:

• The fraudulent activity and how much money was taken 
• Were federal laws, state laws, or both broken?
• How was the fraud committed?
• Were public services (U.S. Postal Service, Medicare) utilized in the crime? 
• Where did the crime occur (within a state or across a state or national border)? 

Potential Penalties for Criminal Fraud

Significant criminal penalties can result from the crime of fraud. The charge may be a misdemeanor or a felony, depending on the facts of your case and the state in which it occurred. Possible penalties include:

• Incarceration 
  • Up to one year in prison is possible for a misdemeanor, while a felony includes multiple years of incarceration. 
  • The penalties for federal charges are more severe. A conviction can mean ten or more years in federal custody. 
  • The minimum prison sentence for federal charges is ten years.

• Probation
  • Probation is another possibility after a fraud conviction. It lets you repay your debt to society without going into prison or jail. However, it’s not a free pass. 
  • Probation significantly impacts your freedom and usually lasts 12 months or longer. The court sets specific terms of your probation that you must follow. These typically include reporting to a probation officer, getting a job, random drug testing, and not breaking any more laws. 

• Fines
  • Fines are a common punishment for a fraud conviction. The amount varies according to your case’s circumstances. It may cost you a few thousand dollars or less for a misdemeanor, while you could expect to pay more than $10,000 for a felony conviction. 

• Restitution
  • The convicted person compensates any loss suffered by a fraud victim. This is known as restitution. These payments are paid in addition to the fines imposed by the court.

Some fraud charges resulting in theft are categorized by value of assets taken. If less than $2,000 is taken fraudulently, then the crime is a misdemeanor and punishable by a maximum fine of $1,000 and up to 30 days in jail. If $2,000-$10,000 is taken fraudulently, the crime is a felony and punishable by a fine at the court’s discretion and up to 5 years in prison. If assets upwards of $10,000 are fraudulently taken, it is also a felony and punishable by a fine at the court’s discretion and up to 10 years in jail.

Call Top South Carolina Fraud Attorney AnneMarie Odom Today

The consequences of fraud crimes are long-lasting and far-reaching. That’s why, if you’re accused of or being investigated for fraud, it’s crucial that you speak with a Greenville fraud defense attorney right away. Your criminal defense attorney will review your case, work on the strongest defense possible, and fight for you in court. 

If you find yourself in the middle of a criminal fraud case, we understand this is a difficult time in your life. Fortunately, AnneMarie Odom Law is here to help. Please call our top Greenville criminal law firm at (864) 775-5833 today to schedule a free consultation to go over your legal options. You can also start the process online.