Fraud charges in Delaware

Penalties in Delaware

Key Delaware rules

• Delaware's theft by deception statute (tit. 11, § 843) covers fraudulent schemes including false representations, which is the primary vehicle for prosecuting most white-collar fraud
• The $1,500 threshold is the key dividing line between misdemeanor and felony fraud charges in Delaware
• Identity theft under tit. 11, § 854 is a separate felony offense and can be charged alongside underlying fraud counts, stacking exposure significantly
• Delaware securities fraud is prosecuted under tit. 6 of the Delaware Code and can involve referral to the Division of Securities; professional license revocation proceedings are handled separately by licensing boards but routinely follow criminal charges
• Restitution to victims is mandatory upon conviction for fraud offenses in Delaware, and the state may pursue civil forfeiture of assets derived from or used in the fraudulent scheme

Diversion, sealing & second chances

Delaware offers diversion and deferred prosecution agreements primarily for first-time, nonviolent offenders, and eligibility for white-collar cases is evaluated case-by-case by the Attorney General's office; expungement of fraud-related felony convictions is generally not available in Delaware, though eligible misdemeanor convictions may qualify for expungement after satisfying waiting periods and restitution requirements under Delaware's expungement statutes.

What the prosecution must prove

• A scheme or artifice to defraud another person or entity of money, property, or honest services
• An intentional and knowing misrepresentation, concealment, or omission of a material fact — meaning a fact that would matter to a reasonable person making a financial or business decision
• Use of a qualifying instrumentality such as the mail, wire communications, a federally insured financial institution, or interstate commerce to further the scheme
• Specific intent to defraud — the defendant must have acted willfully and not merely made an innocent mistake or business error
• In securities fraud cases, prosecutors also typically must prove that the misrepresentation or omission was made in connection with the purchase or sale of a security and that a victim relied on or was exposed to the fraudulent conduct

Common defenses

• Lack of intent — arguing the defendant made honest mistakes, relied on advice of counsel, or had a good-faith belief that the conduct was lawful, negating the required criminal intent
• Insufficient evidence — challenging whether the government can prove every element beyond a reasonable doubt, particularly materiality or the defendant's actual knowledge of the scheme
• Entrapment — asserting that government agents or informants induced the defendant to commit an offense the defendant would not otherwise have committed
• Statute of limitations — many federal fraud offenses carry a five-year limitations period, though it can be extended to ten years for financial-institution fraud, and a charge filed after expiration must be dismissed
• Advice of counsel — demonstrating the defendant disclosed all relevant facts to an attorney and relied in good faith on that attorney's legal guidance can negate willful intent
• Variance or insufficiency in the indictment — contesting that the conduct charged does not legally constitute fraud, or that the government proved a different scheme than what was alleged, potentially requiring dismissal or retrial

Consequences beyond the sentence

• Civil liability and restitution orders requiring repayment of all provable losses to victims, which survive bankruptcy in many cases and can follow a defendant for decades
• Professional license revocation or suspension — lawyers, doctors, accountants, financial advisers, and other licensed professionals routinely lose their licenses upon conviction
• Securities industry bars and SEC disgorgement orders preventing future work in financial services or public companies
• Immigration consequences including deportation or inadmissibility for non-citizens, since fraud offenses are often classified as crimes involving moral turpitude
• Loss of federal benefits, voting rights in some states, and the right to possess firearms, as well as lasting reputational damage that affects future employment and business opportunities

What to do right now

• Retain experienced defense counsel immediately — ideally a lawyer with specific federal white-collar experience — before speaking with investigators, agents, or prosecutors, even if you have not yet been formally charged
• Preserve all potentially relevant documents, emails, financial records, and electronic data, and instruct employees or associates to do the same; destroying or altering records after learning of an investigation can add obstruction charges
• Invoke your Fifth Amendment right to remain silent in any government interview; well-intentioned explanations to agents without an attorney present frequently become the most damaging evidence at trial
• Conduct a privileged internal review with your attorney to understand the full scope of potential exposure, identify witnesses, and assess whether cooperation or a negotiated resolution might be in your interest
• Review and secure all bank accounts, business records, and digital accounts to understand what the government may already have, and discuss with your attorney whether any voluntary disclosures or regulatory self-reporting obligations apply to your situation

Questions to ask a defense lawyer

• What specific federal or state statutes am I charged under, what are the maximum penalties per count, and how does the Sentencing Guidelines calculation look for my alleged conduct and loss amount?
• How strong is the government's evidence of my intent to defraud, and are there viable arguments that my conduct was a good-faith mistake rather than a willful scheme?
• Is cooperation with the government — including providing information about others — a realistic option, and what benefits and risks would that carry compared to going to trial?
• Are there statute of limitations, venue, or constitutional defenses that could lead to dismissal of some or all charges before trial?
• What collateral consequences beyond imprisonment — such as professional license loss, civil liability, restitution, or immigration effects — should I be planning for now, regardless of how the criminal case resolves?