Wire Fraud In Organized Crime Cases
What Is Wire Fraud?
Wire fraud occurs when someone devises a scheme to defraud and uses interstate electronic communications (phone, email, internet) to carry out the fraud. In organized crime, this often relates to scams, money laundering, extortion, or fraudulent business operations conducted across state lines.
1. United States v. John Gotti (1992)
Background: Gotti, the Gambino family boss, was charged with racketeering and wire fraud among other offenses.
How Wire Fraud Was Used: The prosecution showed how Gotti’s crew used interstate telephone lines and other electronic means to conduct illegal gambling and loansharking businesses that involved fraudulent schemes.
Outcome: Wire fraud was part of the RICO charges that led to Gotti’s conviction and life imprisonment.
2. United States v. James "Whitey" Bulger (2013)
Background: Bulger, a Boston crime boss, was charged with racketeering, extortion, and wire fraud.
How Wire Fraud Was Used: Bulger’s organization ran protection rackets and engaged in fraudulent business schemes, including the use of phones and emails to intimidate and defraud victims.
Outcome: Bulger was convicted on all counts, including wire fraud, and sentenced to life in prison.
3. United States v. RICO Conspiracy of the Bonanno Family (2006)
Background: Members of the Bonanno crime family were charged with racketeering, wire fraud, and extortion related to illegal gambling and loan sharking.
How Wire Fraud Was Used: The family used interstate phone calls and electronic communications to manage their illegal enterprises and collect debts fraudulently.
Outcome: Several members pled guilty or were convicted at trial, receiving significant prison sentences.
4. United States v. Michael Franzese (1990)
Background: Franzese, a Colombo family capo, was charged with racketeering and wire fraud related to gasoline tax fraud.
How Wire Fraud Was Used: The scheme involved fraudulent interstate wire communications, including phone calls and faxes, to avoid paying gasoline taxes.
Outcome: Franzese pled guilty to racketeering and wire fraud and was sentenced to prison.
5. United States v. Vincent Gigante (1997)
Background: Gigante, the Genovese family boss, was charged with racketeering and wire fraud as part of a broader criminal conspiracy.
How Wire Fraud Was Used: The family used phones and other electronic means to facilitate illegal loan sharking and extortion, which were part of fraudulent schemes against businesses.
Outcome: Gigante pled guilty and received a 12-year prison sentence.
6. United States v. Enrico "Henry" Bruno (2011)
Background: Bruno, associated with organized crime, was charged with wire fraud and conspiracy related to health care fraud.
How Wire Fraud Was Used: The scheme involved submitting false claims electronically to defraud government health care programs.
Outcome: Bruno was convicted and sentenced to prison, showcasing wire fraud’s role in organized crime beyond traditional rackets.
Key Legal Points in Wire Fraud and Organized Crime Cases
| Element | Explanation |
|---|---|
| Scheme to Defraud | Must show intent to deceive for financial gain |
| Use of Wire Communications | Must prove use of electronic interstate communication (calls, emails, faxes) |
| Connection to Organized Crime | Often charged under RICO statutes as part of broader criminal conspiracies |
| Evidence | Includes phone records, emails, recorded calls, financial transactions |
| Sentencing | Wire fraud carries significant penalties, often combined with other charges |
Summary
Wire fraud is a flexible and powerful charge in organized crime prosecutions. It covers any use of electronic communication to carry out fraudulent schemes, especially across state lines. Prosecutors use it alongside racketeering laws to dismantle criminal enterprises.
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