Fraud generally refers to intentionally using lies or misleading information to get money, property, services, or other advantages. Unlike some crimes, there isn’t one broad “fraud” law that covers every act of dishonesty. The specific charge a person faces will always depend on exactly what they’re accused of doing, who was affected, and whether state or federal rules apply. If you or a loved one have been accused, the experienced Norcross fraud lawyers at Gonzalez Torres Law can help.
What Is State Fraud?
State fraud charges are handled under Georgia’s criminal statutes. Common state-level charges include financial transaction card fraud, identity fraud, forgery, theft by deception, and insurance fraud, along with other financial crimes. For example, financial transaction card fraud in Georgia focuses on people who intend to deceive and use credit or debit cards without permission or supply false information to get a card.
What Is Federal Fraud?
Federal fraud cases involve different rules and charges under federal statutes. Examples include wire fraud, mail fraud, bank fraud, federal program fraud, securities-related fraud, and particular forms of identity fraud.
For a case to be federal, there usually must be a federal jurisdictional connection required by the particular statute, such as the use of interstate wire communications, U.S. mail, a qualifying financial institution, or federal program funds.
What Is the Difference Between State and Federal Fraud Charges?
The main distinction between state and federal fraud charges lies in who investigates and prosecutes the case, as well as what laws are applied.
Who Investigates the Case?
For state cases, investigations are typically conducted by local police, county authorities, or sometimes statewide agencies such as the Georgia Bureau of Investigation.
Federal fraud cases often bring in national agencies like the FBI, IRS Criminal Investigation, the U.S. Postal Inspection Service, the Secret Service, or other federal offices depending on the specifics of the alleged crime.
Who Prosecutes the Case?
If the case involves violations of state law, Georgia district attorneys or other state prosecutors bring charges in state courts. If it’s a federal case, charges are prosecuted by the U.S. Attorney’s Office in federal district court under federal statutes.
What About Penalties?
Penalties for fraud differ widely based on whether you are charged under state or federal law. State court penalties are set by Georgia law and may include jail or prison time, fines, restitution, and probation.
Federal penalties can be more severe and lead to longer prison sentences and significantly larger fines, sometimes including mandatory repayment to victims.
Both types of charges can carry serious collateral consequences outside of court, such as immigration or employment restrictions.
What Should I Do If I Am Being Investigated for Fraud?
If you learn that you’re under investigation for fraud, you should always proceed cautiously. Avoid talking in detail with investigators or anyone else involved before speaking to an attorney. Providing explanations, handing over records, or trying to clarify your side without legal advice can harm your case significantly. Don’t destroy or alter documents, emails, computers, or financial records. This is often viewed harshly by investigators, and sometimes carries its own separate criminal risk.
Protect Your Rights Early in a Fraud Investigation
Responding quickly and thoughtfully can influence both the direction and outcome of a fraud case. Early legal guidance helps protect your interests and avoids mistakes that could have lasting impact. If you’re facing questions or believe you are part of a fraud investigation, contact our office to schedule a confidential consultation with a defense attorney.