When does the government charge for fraud I was just curious, how often does the government actually prosecute cases of fraud in court? Are there parameters that they usually follow when deciding to take a case to court?
"Fraud" is a broad term. In the first 9 months of Fiscal Year 2015, the US Government prosecuted 5173 white collar crimes, according to Syracuse University's Transactional Records Access Clearinghouse. This includes mail fraud, bank fraud, conspiracy to defraud the US, identity theft, health care fraud, wire fraud, and others (listed in the link). Federal prosecutors have a large amount of discretion in when to bring charges. See The Department of Justice Policy on Charging and Sentencing and Title 9 of US Attorney's Manual, Section 27 (Principles of Federal Prosecution). These are not laws, but internal department guidance to prosecutors that outline the factors they should consider when making charging decisions. There is quite a lot of detail in these guidelines, but at the highest level, they are summed up by this paragraph from the Attorney General's memo: Accordingly, decisions regarding charging, plea agreements, and advocacy at sentencing must be made on the merits of each case, taking into account an individualized assessment of the defendant's conduct and criminal history and the circumstances relating to commission of the offense (including the impact of the crime on victims), the needs of the communities we serve, and federal resources and priorities. The US Attorney's Manual gives very specific guidance regarding the prosecution of various forms of fraud. For example, Title 9, Section 43 covers mail and wire fraud. Here is an excerpt: Prosecutions of fraud ordinarily should not be undertaken if the scheme employed consists of some isolated transactions between individuals, involving minor loss to the victims, in which case the parties should be left to settle their differences by civil or criminal litigation in the state courts.
Fraud may be a crime, or a tort (civil wrong): only criminal fraud can be a &quot;felony&quot;. The Washington criminal laws about fraud are here, and they are all fairly specific, such as selling or destroying encumbered property (which is a misdemeanor anyhow), or conducting a mock auction. Most frauds are misdemeanors, though forgeries are in the felony category. It also includes identity thefts, again the emphasis being on false documents. Based on your description, this is not a crime, it is a civil wrong, meaning that she will have to sue the guy to get her money back. The Attorney General's office will not get involved unless there is a widespread state interest (for example, very many Washington residents being victimized), and then the involvement would be suing on behalf of the victims. That said, if the swindle was carried out by phone, then that is potentially a violation of a federal felony law, 18 USC 1343. It would not matter if the parties are in the same state, because phone service counts as &quot;interstate commerce&quot;. So the details of phone involvement matter. Saying that you &quot;have to&quot; charge for processing a refund is not per se fraudulent and texting someone that &quot;I'll have to charge an extra $2,000&quot; doesn't make this wire fraud. But there is some potential for a federal wire fraud angle.
Does using the courts in this way violate any law other than the individual sanctions for improper suits? Not really. Such an organization would probably have to be classified as some form of non-profit other than a 501(c)(3) in most cases, however, since politically motivated litigation usually doesn't qualify as a charitable purpose. In particular, is there any way to go after the money being fundraised for an activity that seems on its face to be of fraudulent intent? (I.e. filing cases with 0 chances of winning just to be able to dupe people into thinking their money can be used to help win an unwinnable fight?) No really. If they took money and spent it on the personal benefit of people related to the founders that might be fraud. This is essentially what happened in a non-profit purportedly established to help pay for a border wall. But using the money for a stated purpose of the entities that outsiders see as futile is probably not fraud or a violation of state regulation of entities that are not for profit. If there was such a way, would it be the state or federal government pursuing the case, or could any private actors have standing? A state attorney general's office generally has broad supervisory standing to confirm that entities which are not &quot;for profit&quot; are conforming to state law and their governing documents. Donors might have private causes of action for fraud if there were fraudulent misrepresentations made to secure funding that both the state AG and the Justice Department could also enforce criminally. But, the conduct described does not appear to be fraudulent.
A warrant is never automatically issued. A warrant (I assume you mean arrest warrant) can be issued under court orders, if there is probable cause to believe that a crime has been committed. If a court orders A to pay money to B and A does not, A can be arrested. A court will not sua sponte make such an order without some petition by a harmed party. So B could sue A for the amount owed, and the burden is on B. There are criminal laws that pertain to check bouncing, for example in Washington under RCW 9a.56.060 it is a crime, but not every check-bouncing is a crime. You have to have "intent to defraud", "knowing at the time..that he or she has not sufficient funds". If convicted you will be fined, and may be imprisoned. Even in the case of a fraudulent intent, there is no automatic warrant (the police do not know what has come to pass). B does not "press charges", but they can complain to the police who may investigate and find that there is evidence of fraudulent intent (which can lead to an arrest warrant). They may also conclude that the evidence of fraud is insufficient.
It depends partly on where you are. If you're in the foreign country and they have a law compelling you to answer any questions asked by their government or some company, they you have to answer the question. Whether lying has any legal repercussions depends on the laws of the country, so you'd have to narrow it down a bit. If you're in the US, the only context where you can be compelled to answer a question is when ordered to do so in court (giving testimony), and you have 5th Amendment immunity from being forced to testify against yourself. If you are granted immunity from prosecution, then they can compel you to testify (answer the question). If a foreign entity asks you whether you are a US citizen, you can decline to answer. You can also make up any answer you want, and generally not run afoul of US law (though you could run into problems in that country). There are state and federal laws about making false statements in official investigations, which would not be applicable to what you describe. There is no general law that says you must always tell the truth. However, making a false statement could be part of the crime of fraud, so it would depend on the context of your statement, i.e. are you misrepresenting your citizenship in order to get something of value. In light of the topical update, again there may be country-specific penalties in country for lying about citizenship, and tax evasion is against the law here, which is true whether or not you lie. FATCA specifies a duty to disclose (sect. 6038d), which is not tied to truthful reporting of citizenship (in other words, there is no point in lying to the bank because non-reporting is still a crime). But: this law probably brings the lie with the scope of 18 USC 1001 ("Martha's Law"), which makes it a crime to conceal a material fact "in any matter within the jurisdiction of ...the United States". This means and has been held to mean not just that you can't lie to federal officers, you can't lie to anyone who reports your information to the federal government. FATCA also says "we don't care if it's a crime to report being an American in that country", so inconveniences certainly are not a defense.
One reason is that in a German civil suit, the cost for lawyers and for the court (court isn't free) is set according to the value that the parties are arguing about, which would be the value that one party demands, minus the value that the other party is offering to pay. Then the cost is divided between winner and loser according to the percentage of the value the claimant was awarded. So if I ask for €1,000,000 and I am rewarded €10,000 then the cost is calculated based on my €1,000,000 claim, and since I was rewarded only 1% of the claim, I'll pay 99% of the cost. The defendant will pay my €10,000 and 1% of the cost, that is my lawyers, their lawyers, and the court. With these rules, asking for the sky and then not getting much is a very, very bad strategy. On the other hand, if a huge company sues me for €10,000 then they can't snow me under with an army of lawyers: The court will get only a small amount of money for the case, so at some rather early point the judge would tell the huge company: Stop right now; I'm not paid enough money to listen to your army of lawyers.
Fraud wrongful or criminal deception intended to result in financial or personal gain So, you knowingly deceived the US government in order to make a financial gain by not paying the right amount of tax. Sounds like fraud to me. Specific penalties for the IRS are here. Of most relevance is Title 26 USC § 7201 Attempt to evade or defeat tax: Any person who willfully attempts to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof: Shall be imprisoned not more than 5 years Or fined not more than $250,000 for individuals ($500,000 for corporations) Or both, together with the costs of prosecution Note that this is per offence. If you have done it for 6 years that is 6 offences so the maximum you face is 30 years and $1,500,000 plus the costs of prosecution. In practice, how bad can this get? This bad. You need a lawyer now.
If a random attorney at the direction of a judge has standing to challenge actions within executive branch jurisdiction, why didn’t a judge prosecute the banks guilty of criminal fraud leading to the 2008 financial crisis when Obama ordered the DOJ to not prosecute? This is a misunderstanding of the issue. Judge Sullivan is not &quot;prosecuting&quot; Mr. Flynn. Judges do not have the power to prosecute people. Instead, Sullivan (argues that he) is trying to decide whether or not to grant the government's motion to dismiss. Normally, this is a very open and shut question: If the government doesn't want to prosecute someone, then it would make no sense to try and keep the case in court, so it's typical for these dismissals to be rubber stamped. The complication in this particular case is that Mr. Flynn has already pleaded guilty. Because he was in federal court, on a federal charge, pleading guilty is a rather involved process. His plea included very explicit statements under oath about the specific conduct he allegedly committed, and that conduct directly matches up with specific required elements of the alleged crime. After Mr. Flynn had already made those statements under oath, the government told Judge Sullivan that it did not believe it had enough evidence to prove the case beyond a reasonable doubt. Judge Sullivan now wants to hold a hearing to determine whether he can or should believe the government, and if not, what if anything he can or should do about it. Finally, the DC Circuit issued a writ of mandamus ordering Judge Sullivan to immediately grant the dismissal. Sullivan is now appealing that order. In this sense, then, the dispute is not directly about Mr. Flynn's case, but rather about the level of discretion to which Judge Sullivan is entitled in performing his official duties. By issuing the writ, the DC Circuit necessarily determined that Judge Sullivan was not legally entitled to hold the hearing which he wanted to hold. That is what the en banc re-hearing is about.