Will I Go to Jail for Internet Auction Fraud?

Internet auction fraud is a serious offense that can lead to severe legal consequences, including imprisonment. At Spodek Law Group, we understand the complexities and nuances of such cases and are here to provide you with the necessary legal guidance. Our experienced attorneys have handled numerous cases involving internet auction fraud, and we can help you navigate the legal system to achieve the best possible outcome.

Understanding Internet Auction Fraud

Internet auction fraud typically involves deceitful practices where the perpetrator uses online auction platforms to defraud buyers or sellers. Common schemes include:

• Non-Delivery of Goods: The seller accepts payment but never delivers the promised item.
• Misrepresentation: The seller provides false information about the item being auctioned.
• Shill Bidding: The seller artificially inflates the price of an item using fake bids.
• Identity Theft: The perpetrator uses stolen identities to set up fraudulent auction accounts.

These fraudulent activities can lead to significant financial losses for victims and can attract the attention of federal authorities, including the Federal Trade Commission (FTC) and the Department of Justice (DOJ).

Legal Consequences of Internet Auction Fraud

Engaging in internet auction fraud can result in both civil and criminal penalties. Depending on the severity and scope of the fraud, you could face:

• Imprisonment: Convictions for internet auction fraud can lead to substantial prison sentences. For example, in a notable case, Thomas Houser was sentenced to 144 months (12 years) in prison for defrauding 261 individuals through internet auction schemes.
• Fines: Offenders may be required to pay significant fines. These fines can be imposed to deter future misconduct and compensate victims for their losses.
• Restitution: Courts often order offenders to pay restitution to their victims. In Houser's case, he was directed to pay $94,527.21 in restitution.
• Permanent Injunctions: Courts may issue permanent injunctions to prevent offenders from participating in internet auctions or engaging in similar fraudulent activities in the future.

Case Law and Legal Precedents

Several cases highlight the serious consequences of internet auction fraud:

• FTC v. James D. Thompson and Susan B. Germek: The defendants were permanently barred from participating in internet auctions and making false claims about products. Germek pled guilty to mail fraud and faced sentencing, while Thompson was ordered to pay $88,056.18 in consumer redress.
• United States v. Thomas Houser: Houser was convicted of mail and wire fraud and sentenced to 144 months in prison, along with a restitution order.

Defenses Against Internet Auction Fraud

If you are accused of internet auction fraud, several defenses may be available:

1. Lack of Intent: Demonstrating that you did not have the intent to defraud can be a crucial defense. Fraud requires a deliberate intention to deceive.
2. Mistaken Identity: If you can prove that someone else used your identity to commit the fraud, you may be able to avoid liability.
3. Lack of Evidence: Challenging the sufficiency and reliability of the evidence against you can be an effective defense strategy.
4. Entrapment: If law enforcement induced you to commit the fraud, you might have a valid entrapment defense.

How Spodek Law Group Can Help

At Spodek Law Group, we have extensive experience defending clients against internet auction fraud charges. Our attorneys will:

• Analyze the Evidence: We will thoroughly review the evidence against you to identify weaknesses in the prosecution's case.
• Develop a Defense Strategy: Based on our analysis, we will develop a tailored defense strategy to protect your rights and interests.
• Negotiate with Prosecutors: We will negotiate with prosecutors to seek a favorable plea deal or dismissal of charges.
• Represent You in Court: If your case goes to trial, we will provide aggressive representation to achieve the best possible outcome.

Conclusion

Internet auction fraud is a serious crime that can lead to significant legal consequences, including imprisonment. If you are facing charges, it is crucial to seek legal representation from experienced attorneys like those at Spodek Law Group. We are committed to providing you with the best defense and protecting your rights throughout the legal process. Contact us today at 212-300-5196 to discuss your case and explore your legal options.