GDPR and US Criminal Law: When International Data Privacy Violations Lead to Prosecution

International data privacy regulations can intersect with US criminal law in complex ways. Understanding these jurisdictional issues is crucial for businesses and individuals operating globally.

Understanding Internet Fraud Charges

Internet fraud encompasses a wide range of alleged criminal conduct. Understanding the specific charges and potential defenses is essential for anyone facing these allegations.

Common Federal Charges

Federal prosecutors frequently charge internet fraud under several statutes:

**Wire Fraud (18 U.S.C. § 1343)**: This broad statute prohibits using wire communications to execute a scheme to defraud. Wire fraud carries up to 20 years imprisonment, or up to 30 years if the fraud affects a financial institution.

**Mail Fraud (18 U.S.C. § 1341)**: Similar to wire fraud but involving mail. Often charged alongside wire fraud.

**Conspiracy (18 U.S.C. § 371)**: Prosecutors frequently add conspiracy charges, which can extend liability to all alleged participants.

Elements of Wire Fraud

To convict for wire fraud, prosecutors must prove:

1. 1.A scheme to defraud
2. 2.Intent to defraud
3. 3.Use of wire communications
4. 4.Materiality of false statements

Each element presents opportunities for defense.

Types of Internet Fraud Cases

Internet fraud allegations take many forms, each with unique considerations.

Business Email Compromise (BEC)

BEC schemes involve impersonating business contacts to redirect payments. These cases often involve:

• Spoofed email accounts
• Social engineering
• International transfers
• Multiple victims

Investment Fraud

Online investment fraud cases may involve:

• Cryptocurrency schemes
• Ponzi structures
• Securities violations
• Commodities fraud

Romance Scams

Romance fraud cases present unique issues including:

• Relationship dynamics
• International elements
• Victim cooperation

Defense Strategies

Effective defense against fraud charges requires careful analysis of both facts and law.

Challenging Intent

Fraud requires proof of intent to defraud. Legitimate business failures or honest mistakes do not constitute fraud:

• Was there a good faith belief in the legitimacy of the venture?
• Were losses due to market conditions rather than fraud?
• Did the defendant believe representations were true?

Materiality

False statements must be material—capable of influencing the victim's decision. Immaterial misstatements do not support fraud convictions.

Reliance Issues

In some fraud cases, victim reliance on false statements is required. Evidence that victims conducted independent verification may undermine this element.

Sentencing Considerations

Federal fraud sentencing involves significant guidelines calculations.

Loss Calculations

The primary driver of fraud sentences is loss amount. Defense counsel must carefully analyze:

• Actual vs. intended loss
• Credits for returned funds
• Causation issues
• Multiple counting concerns

Role Adjustments

Sentences may be adjusted based on the defendant's role:

• Leadership enhancements for organizers
• Minimal participant reductions for minor involvement

Restitution

Fraud convictions typically include restitution orders requiring repayment to victims. Understanding restitution calculations and payment obligations is essential.

Protecting Your Rights

If you're facing fraud allegations:

1. 1.Preserve all documents and communications
2. 2.Do not discuss the case with potential co-defendants
3. 3.Do not destroy any evidence
4. 4.Consult with experienced counsel immediately

Fraud investigations often precede charges by months or years. Early intervention by counsel can sometimes prevent charges from being filed.