Asking Investors to Pay A Fee Upfront & Advance Fee Fraud
The FBI states that an advance fee scheme occurs “when the victim pays money to someone in anticipation of receiving something of greater value – such as a loan, contract, investment, or gift – and then receives little or nothing in return.”
An advance fee fraud scheme could be carried out in a number of ways. It could involve the sale of products or services, the offering of investments, lottery winnings, found money, an offer for participation in a “special deal” after an advance fee is paid, or many other “opportunities.” However, simply because a business deal requires investors to pay an upfront fee does not make it a fraud scheme.
Intent to Defraud
In an advance fee fraud case, the prosecution must prove intent to defraud and to deprive a person of their money. Though, it can be difficult to prove intent. Asking investors to pay a fee upfront, or even a finder’s fee, is not illegal. Advance fee fraud occurs when false promises are made to entice a person into paying a fee upfront, with no intention of providing anything of value in return. A business deal requiring an upfront fee, resulting in investors receiving little or nothing in return due to a bad investment, bad luck, or some other innocuous circumstance, does not amount to fraud.
Defending Against Charges of Advance Fee Fraud
Ashley D. Adams understands the federal and state laws behind fraud prosecutions and knows how to cast doubt on whether a crime was committed. As a former fraud prosecutor with the United States Attorney’s Office, she knows how prosecutors operate and the best tactics to use to get criminal charges dropped or dropped to lesser charges.
There is no white collar criminal case that is too complex or too challenging for us. No matter how difficult your case may appear, contact Ashley D. Adams, PLC for the legal protection you need.
Contact our Arizona fraud and criminal defense attorneys on the web or call (480) 219-1366 for a consultation and case evaluation. There is no substitute for the type of experience and diligent legal representation that a high-quality attorney can provide.
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