In many criminal cases, location determines jurisdiction. The place where the crime occurs controls who prosecutes the case. Every state has slightly different laws defining criminal offenses and imposing specific penalties. There are certain crimes that are against state law and are also illegal at the federal level. Many white-collar criminal offenses, including various types of fraud, often lead to federal prosecution instead of state charges.
Why does the federal government often pursue allegations of healthcare fraud, wire fraud or investment fraud instead of letting state authorities handle those cases?
The case may involve federal infrastructure
If a person accused of fraudulent financial conduct made use of federal infrastructure during their criminal activity, they could be at risk of federal prosecution. For example, mail fraud involves sending solicitation materials to targeted parties using the United States Postal Service (USPS) or asking individuals to mail documentation or funds.
The use of telecommunication systems or the Federal Reserve could also justify federal prosecution. So could crimes involving private or federal health insurance programs.
The allegations may stem from interstate activities
Fraudulent financial conduct often involves multiple people in a variety of jurisdictions. Those engaged in fraud often reach out to thousands of people in pursuit of a single credible lead. If people involved in the fraudulent scheme operate across state lines, that may require federal prosecution instead of state-level charges.
Those accused of financial crimes may need help assessing the evidence against them and preparing a realistic defense strategy. Allegations of white-collar crimes often lead to federal charges and therefore require the support of a professional familiar with the federal court system.