Plain-English summary
Court rejects Second Circuit’s “right-to-control” theory as basis for wire fraud liability
The Court unanimously reversed the Second Circuit and held that the government may not use the Second Circuit’s “right-to-control” theory to prove wire fraud under 18 U.S.C. § 1343. The decision narrows the kinds of deceptions the federal wire-fraud statute can reach, requiring a showing of deprivation of money or property rather than merely withholding information that affects economic decisions.
Why this matters
This decision limits the government’s ability to use the federal wire fraud statute in cases where the alleged wrongdoing involves misleading or withholding information but does not result in the victim losing money or property. It preserves a narrower, property-focused reading of the statute and reduces the risk that routine business deception or non-payment disputes will be charged as federal wire fraud.
Who may feel it
- People and businesses accused of fraud in federal cases
- Prosecutors seeking to bring wire fraud charges
- Companies, contractors, and government agencies involved in contractual or bidding disputes
- Defense attorneys and criminal justice reform advocates
Key questions
- Does the federal wire fraud statute cover schemes that deprive victims only of information that would affect their economic choices, without an actual loss of money or property?