An advance fee scheme occurs when the alleged person/company receives money from another with the anticipation of receiving something of greater value, such as a loan, investment, or a job, and then gives little or nothing in return. An advance fee scheme is considered as wire and/or securities fraud since it often committed or aided through the use of interstate “wires”.

How are advance fee schemes investigated by the Federal Bureau of Investigations (FBI)?

Like many other financial schemes, a wire fraud is investigated after a victim or layperson has filed a report/complaint with the local police precinct or the FBI online. However, legal authorities may receive thousands of reported complaints everyday regarding scams and fraud schemes, but this doesn’t necessarily mean that they will launch an investigation on every complaint filed.

Typically, for the FBI to launch an investigation on an alleged wire fraud, there must be either interstate involvement or a loss exceeding a minimum financial threshold of $250,000.

Once the FBI determines that the alleged advance fee scheme meets either of these two criteria, it will then be passed to the FBI Financial Crimes Unit (FCU) for further investigation. Sometimes the FCU will deploy undercover investigators to pose as potential victims to trap the suspect. Once the investigators gather enough information, they will either arrest or attempt to conduct an interview with the suspect.

Often, by the time the defendant discovers that a FBI investigation is underway, the government has already gathered enough evidence against him/her. Many federal criminal defendants risk more than just a marred permanent record; they risk losing their professional licensure, property, job and ultimately their livelihood.

Our New York and Long Island white collar criminal defense team is well prepared to represent clients charged with wire and securities fraud on allegation of perpetrating an advance fee scheme.

If you are recently being investigated by the FBI or SEC, for wire and securities fraud in Long Island,  call our Long Island federal criminal lawyers at 516.204.7611 to get professional legal assistance.