Mail and Wire Fraud – California and Federal

Using the mail or an electronic wire to commit fraud is criminalized under both state and federal laws. Here is what you need to know if you are charged with one of these offenses.

California Penal Code 502

California makes it illegal to use a computer, email, computer system or computer network to defraud someone or wrongfully obtain money, property or data.¹ Additionally, it is illegal to use any of the above for the purpose of:

• Takes, copies, or makes use of any data or supporting documentation
• Uses or causes to be used computer services
• Adds, alters, damages, deletes or destroys data, computer software or computer programs
• Disrupts or causes the disruption of computer services or the denial of service to an authorized user
• Accesses or causes to be accessed any computer, computer system or computer network
• Adds a virus or other contaminant
• Sends an electronic message or post that damages a computer, data, computer system or computer network
• Disrupts or causes the disruption of government services
• Adds, alters, damages, deletes or destroys data, computer software or computer programs to a public safety infrastructure
• Disrupts or causes the disruption of computer services or the denial of service to an authorized user to a public safety infrastructure
• Adds a virus or other contaminant to a public safety infrastructure
• Provides access to a public safety infrastructure computer system, computer or computer network to an unauthorized user²

This offense is usually considered a felony and is typically punished by imprisonment of 16 months, two years or three years and a fine up to $10,000. If it is charged as a misdemeanor, the crime is punished by up imprisonment in the county jail for up to one year and a fine of up to $5,000.³

California Penal Code 530.5

California criminalizes the act of stealing personal identifying information from the mail in order to obtain money or apply for credit cards or loans.⁴ This offense is a misdemeanor that is punished by up to one year in jail and a fine.

Federal Mail and Wire Fraud

Federal mail fraud⁵ occurs when a person uses the post office, authorized depository for mail or a private or commercial carrier to commit fraud or use counterfeit money. The possible penalty for this offense is typically maximum imprisonment of 20 years and a large fine. However, if the fraud involves a presidentially declared disaster, the maximum penalty is 30 years imprisonment and a fine up to $1 million.⁶

Wire fraud has the same elements as mail fraud but instead is based on using an interstate telephone call or electronic communication to complete the fraud.⁷ Wire fraud contains the same potential penalties as mail fraud.⁸

References

1 California Penal Code 502(c)(1) PC – Explains that any person who “Knowingly accesses and without permission alters, damages, deletes, destroys, or otherwise uses any data, computer, computer system, or computer network in order to either (A) devise or execute any scheme or artifice to defraud, deceive, or extort, or (B) wrongfully control or obtain money, property, or data” is guilty of a public offense.

2 California Penal Code 502 PC – Describes all of the following as public offenses:

3 California Penal Code 502(d)(1) PC – (“Any person who violates any of the provisions of paragraph (1), (2), (4), (5), (10), (11), or (12) of subdivision (c) is guilty of a felony, punishable by imprisonment pursuant to subdivision (h) of Section 1170 for 16 months, or two or three years and a fine not exceeding ten thousand dollars ($10,000), or a misdemeanor, punishable by imprisonment in a county jail not exceeding one year, by a fine not exceeding five thousand dollars ($5,000), or by both that fine and imprisonment.”)

4 California Penal Code 503.5(a) PC – (“Every person who willfully obtains personal identifying information, as defined in subdivision (b) of Section 530.55, of another person, and uses that information for any unlawful purpose, including to obtain, or attempt to obtain, credit, goods, services, real property, or medical information without the consent of that person, is guilty of a public offense, and upon conviction therefor, shall be punished by a fine, by imprisonment in a county jail not to exceed one year, or by both a fine and imprisonment, or by imprisonment pursuant to subdivision (h) of Section 1170.”)

5 18 United States Code Chapter 63 §1341 – (“Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, or to sell, dispose of, loan, exchange, alter, give away, distribute, supply, or furnish or procure for unlawful use any counterfeit or spurious coin, obligation, security, or other article, or anything represented to be or intimated or held out to be such counterfeit or spurious article, for the purpose of executing such scheme or artifice or attempting so to do, places in any post office or authorized depository for mail matter, any matter or thing whatever to be sent or delivered by the Postal Service, or deposits or causes to be deposited any matter or thing whatever to be sent or delivered by any private or commercial interstate carrier, or takes or receives therefrom, any such matter or thing, or knowingly causes to be delivered by mail or such carrier according to the direction thereon, or at the place at which it is directed to be delivered by the person to whom it is addressed, any such matter or thing” shall be guilty of the offense.)

6 18 United States Code Chapter 63 §1341 – Any person who meets the above definition “shall be fined under this title or imprisoned not more than 20 years, or both. If the violation occurs in relation to, or involving any benefit authorized, transported, transmitted, transferred, disbursed, or paid in connection with, a presidentially declared major disaster or emergency (as those terms are defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122)), or affects a financial institution.” such person shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both.”

7 18 United States Code Chapter 63 §1343 – (“Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, transmits or causes to be transmitted by means of wire, radio, or television communication in interstate or foreign commerce, any writings, signs, signals, pictures, or sounds for the purpose of executing such scheme or artifice” is guilty of the offense.)

818 United States Code Chapter 63 §1343 – Any person who meets the above definition “shall be fined under this title or imprisoned not more than 20 years, or both. If the violation occurs in relation to, or involving any benefit authorized, transported, transmitted, transferred, disbursed, or paid in connection with, a presidentially declared major disaster or emergency (as those terms are defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122)), or affects a financial institution, such person shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both.”