Federal Criminal Law (Fraud)

Question 1

Over dinner at a local hog trough restaurant, Billie Bob and Bubba discuss the sad state of affairs of fine dining in local area. Billie Bob, realizing that Bubba is really a great cook and there is an opportunity to make a buck here, informs Bubba that for $4,500 he can get Bubba, a fully recognized certified educational degree with SUMA CUM LAUDE honors from the famous Blue Ribbon Southern School of Culinary Art. With this degree, Bubba could pursue his lifelong dream of being a chef at a fine restaurant in the local Brunswick, Ga. area, which would assuredly raise the bar regarding local fine dining. Bubba, to obtain $4,500 pawns the title to his prized, tricked out, brand new, pristine, turbo diesel, 4x4, Ford, F650 truck as collateral. Once the loan is obtained, Bubba mails a $4,500 certified check to Billie Bob. Bubba, 4 weeks later, received a degree from culinary art school via UPS. Unfortunately for Bubba, there is no culinary art school by that name in existence. Billie Bob, based on these facts, can be correctly charged with:
ANSWER
a. Mail Fraud
b. Wire Fraud
c. Travel Fraud
d. Food Fraud

Answer 1

a. Mail Fraud CORRECT: A scheme using the mail or interstate carrier to obtain money or property fraudulently is mail fraud. NOTE: there is no monetary threshold for this offense.

Question 2

Bubba, never satisfied with just a local culinary institute degree of dubious value, decides to obtain a “real” degree. To this end, while Bubba is in his Georgia home, he replies to a newspaper ad placed by Billie Bob in a newspaper that is distributed throughout the entire southeast of the United States. Ironically, the newspaper is actually published in New York. The ad in the newspaper, which Bubba receives electronically on his home computer, promises a Culinary Institute of America (CIA) degree bound in leather to anyone who mails in $2,500 with their biographical data to include social security number to a post office box in Poughkeepsie, NY. Bubba, realizing that the CIA is the real deal, a truly worldwide recognized culinary school, quickly pawned his brand new, turbocharged, air conditioned, 4 x 4, ATV and mailed off the $2,500 in order to obtain a quality culinary institute degree. His check is quickly cashed, but his leather bound degree is never received. Bubba sent off two separate postcards inquiring as to what has become of his degree, but he never obtains a response. Woe is Bubba! What is the appropriate charge for Billie Bob’s nefarious scheme?
ANSWER
a. Mail fraud only.
b. Wire fraud only.
c. Mail and Wire fraud.
d. Newspaper fraud only.

Answer 2

c. Mail and Wire fraud. CORRECT: Post cards mailed (mail fraud) – newspaper delivered electronically (wire fraud).

Question 3

Being completely frustrated in his efforts to become a culinary expert, Bubba decides to make some real money. Bubba devises an investment scheme that promises 20% return every month on an investment of an offshore gambling operation. People readily joined his investment operation. At the end of the end of the month, Bubba mailed out the initial investors 20% return and encouraged them to leave their money fully invested and to seek out others who want to make solid returns as well. He enclosed a flyer as a handout for their use. Each month he paid out 20% returns or sent an accounting statement indicating the promised returns were fully invested in their accounts. In reality, there was no offshore gambling operation. Bubba was paying off original investors with money obtained from new investors. Bubba is guilty of: ANSWER

a. Mail Fraud
b. Wire Fraud
c. Offshore Gambling Fraud
d. Nothing

Answer 3

a. Mail Fraud CORRECT: Bubba used the mail in a scheme to defraud.

Question 4

Billy Joe, who lives in Atlanta heard about Bubba’s super 20% per month gambling investments from an email his brother Leroy, who sent the gambling flyer to him from Seattle. Since Billy Joe just won a lot of money on a scratch-off lottery ticket, he decided to do some proper investing, so that he could count on receiving income month after month. Billy Joe mails an application form he found in an advertisement that arrived in the mail along with cash to open the account. Billy Joe is surprised to learn that Bubba’s office address is just 10 blocks away from where he works in Atlanta. Has Bubba committed an offense under the fraud statutes?
ANSWER
a. Yes, but only mail fraud.
b. Yes, but just mail and wire fraud.
c. No, mail fraud was not committed because Bubba never used the mail.
d. No, wire fraud was not committed because Bubba did not use wire communications.

Answer 4

b. Yes, but just mail and wire fraud. CORRECT: Leroy’s email from Seattle to Atlanta is a count of wire fraud, as it is reasonably foreseeable the information would be passed around and that others would join in. Mail fraud is appropriate based on mailing the application form.