How do federal sentencing guidelines work in fraud cases?

Q: How do federal sentencing guidelines work in fraud cases?

A: If you or a loved one has been convicted of a fraud crime in federal court, one of the key factors the judge will consider is the sentencing guidelines. Here is how they work for fraud cases.

After the Enron scandal, there was concern that white-collar criminals were getting off too easily, leading to stricter laws and longer prison sentences for fraud. As a result, the guidelines for fraud can now call for sentences as severe as those for kidnapping or arson, which is quite remarkable.

Your guidelines calculation in a fraud case will depend on several factors. First, the loss amount is crucial. If the loss exceeds a million dollars, a typical fraud case could result in a sentence of more than three years. Importantly, for fraud guidelines, loss is not just the money you made or others lost; it is the reasonably foreseeable loss, meaning the potential loss the victims could have experienced.

Additionally, the guidelines consider characteristics of the crime, such as the number of victims and whether you abused a position of trust to commit the fraud. These factors can increase the sentence recommended by the guidelines. Some judges recognize the severity of these guidelines, while others do not, so outcomes can vary.