Civil fraud involves a dispute between private parties—typically a business or individual seeking monetary compensation from another who allegedly defrauded them. A civil fraud case is decided by a preponderance of the evidence standard, meaning it is more likely than not that the fraud occurred. Criminal fraud, by contrast, is brought by the state or federal government and requires proof beyond a reasonable doubt of each element of the charged offense, including the defendant’s intent to deceive. A person can face both civil and criminal proceedings arising from the same underlying conduct, and a civil judgment does not prevent criminal prosecution or vice versa.
Houston Fraud Attorney
Fraud allegations carry consequences that reach far beyond the courtroom. A conviction can end careers, destroy professional licenses, drain assets through restitution orders, and leave a permanent felony record that follows you for the rest of your life. Whether you are under active investigation, have been contacted by federal agents, or have already been formally charged, the time to act is now. At The Downey Law Firm, located at 2814 Hamilton St in Houston’s Midtown neighborhood, our board-certified criminal defense attorney has represented individuals and businesses facing fraud and white collar crime charges throughout Harris County and the surrounding region. Call us today at (713) 651-0400 for a confidential evaluation of your case.
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What Is Fraud Under Texas Law?
Under the Texas Penal Code, fraud encompasses a wide range of conduct involving intentional deception for financial gain or to cause harm to another person or entity. The defining element in virtually all fraud prosecutions is intent: the prosecution must prove, beyond a reasonable doubt, that the defendant knowingly made a false representation, concealed material information, or engaged in deceptive conduct with the purpose of obtaining a benefit or causing a loss to another.
This intent requirement is one of the most critical and frequently contested aspects of any fraud defense. Transactions that appear irregular in hindsight may reflect honest mistakes, accounting errors, misunderstandings between business partners, or reliance on inaccurate information provided by others. A skilled Houston fraud defense attorney analyzes the facts to distinguish between genuine criminal conduct and conduct that was never intended to deceive anyone.
Types of Fraud Cases We Defend in Houston
The Downey Law Firm defends clients against the full spectrum of fraud allegations prosecuted in Harris County courts and in the Southern District of Texas federal court. Houston’s position as a global hub for the energy industry, the Texas Medical Center, international trade, and financial services means that fraud investigations here are often complex, multi-agency affairs involving substantial documentary evidence and forensic accounting. Fraud charge types we handle include:
Mail and Wire Fraud
Mail fraud and wire fraud are among the most broadly charged federal offenses and are frequently stacked alongside other charges in complex investigations. Under federal law, any scheme to defraud that uses the U.S. mail, a private carrier, email, telephone, or any electronic communication in interstate commerce can give rise to mail or wire fraud charges. Each individual use of a wire or mailing can constitute a separate count, meaning a single scheme can result in dozens of individual charges, each carrying up to 20 years in federal prison. The Downey Law Firm scrutinizes the government’s evidence to determine whether the communications cited actually further a scheme to defraud and whether the defendant’s intent is genuinely supported by the record.
Healthcare and Medicare/Medicaid Fraud
Given the size of the Texas Medical Center—the largest medical complex in the world—Houston is a priority enforcement area for healthcare fraud investigations conducted by the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), the FBI, and the U.S. Attorney’s Office for the Southern District of Texas. Healthcare fraud allegations can target physicians, hospital billing departments, home health agencies, pharmacies, and medical equipment suppliers. Common allegations include billing for services not rendered, upcoding, unbundling, kickback arrangements under the Anti-Kickback Statute (42 U.S.C. § 1320a-7b), and False Claims Act violations. These cases are often built over months or years of undercover investigation before a target is ever aware they are under scrutiny.
Insurance Fraud
Insurance fraud under Texas Penal Code Chapter 35 covers a broad range of conduct, including staging accidents, submitting false or inflated claims, misrepresenting facts on insurance applications, and billing insurers for services or repairs not actually performed. Charges can range from a Class C misdemeanor for small-dollar claims to a first-degree felony when the alleged loss exceeds $300,000. The Texas Department of Insurance Fraud Unit and local law enforcement agencies actively investigate and refer insurance fraud cases for prosecution in Harris County courts.
Mortgage and Bank Fraud
Mortgage fraud typically involves misrepresentations made in connection with a loan transaction—overstating income, misrepresenting the intended use of a property, using straw buyers, or inflating appraisals. Bank fraud under federal law (18 U.S.C. § 1344) covers any scheme to defraud a financial institution or to obtain funds from a bank through false pretenses. These cases often arise from real estate transactions that went sideways and are later scrutinized by lenders, federal regulators, or the FBI.
Identity Theft and Credit Card Fraud
Identity theft under Texas Penal Code § 32.51 prohibits obtaining, possessing, transferring, or using another person’s identifying information without consent and with the intent to harm or defraud. The offense is graded based on the number of victims, ranging from a state jail felony (fewer than five victims) to a first-degree felony (fifty or more victims). Credit card and debit card abuse under Texas Penal Code § 32.31 covers unauthorized use of payment card information and is frequently charged alongside identity theft allegations.
Tax Fraud and Evasion
Tax fraud investigations are typically conducted by the IRS Criminal Investigation Division (IRS-CI) and can result in federal charges including tax evasion under 26 U.S.C. § 7201, filing a false return under 26 U.S.C. § 7206, and failure to pay under 26 U.S.C. § 7203. Not every tax discrepancy rises to the level of criminal conduct—many disputes between taxpayers and the IRS are civil in nature. However, when the government believes that underreporting or non-payment was willful, criminal prosecution is possible. Our firm works alongside forensic accountants and tax professionals to present a complete picture of the defendant’s financial records and intent.
Securities and Investment Fraud
Houston’s energy and financial sectors give rise to securities fraud allegations involving Ponzi schemes, stock manipulation, insider trading, and fraudulent investment offerings. These cases may be prosecuted by the U.S. Securities and Exchange Commission (SEC) or the U.S. Attorney’s Office under the Securities Exchange Act of 1934, the Investment Advisers Act, or related federal statutes. Securities fraud investigations can move quickly, and early intervention by an experienced Houston fraud defense attorney can make a significant difference in how the government characterizes the conduct before charges are filed.
Embezzlement and Misappropriation of Funds
Embezzlement is typically prosecuted in Texas as theft by a fiduciary under Texas Penal Code Chapter 31, covering situations in which a person entrusted with another’s money or property unlawfully appropriates it for personal use. These cases frequently arise in employer-employee relationships and are often detected through internal audits or forensic accounting reviews. The offense level depends on the value of the funds involved, and business partners, accountants, and bookkeepers can find themselves accused based on financial records that may have innocent explanations.
Forgery and Check Fraud
Forgery under Texas Penal Code § 32.21 includes altering, making, completing, executing, or authenticating a writing with the intent to defraud or harm another. Check fraud involves the issuance of checks drawn on accounts known to be closed or without sufficient funds, or the alteration of legitimate checks. These charges frequently accompany other fraud allegations and can carry felony-level penalties depending on the instrument involved and the value affected.
Money Laundering
Money laundering charges under Texas Penal Code § 34.02 and the federal Money Laundering Control Act (18 U.S.C. §§ 1956–1957) are often layered on top of underlying fraud charges to increase penalties and provide prosecutors with additional leverage. Money laundering allegations assert that proceeds from criminal activity were concealed, transferred, or used in transactions designed to make the funds appear legitimate. These charges significantly expand the government’s asset forfeiture authority and can result in sentences that run consecutively with other counts.
Penalties for Fraud Convictions in Texas
The severity of a fraud conviction under Texas law is determined primarily by the value of the alleged financial harm. The Texas Penal Code’s theft grading scale governs most fraud offenses and assigns penalty levels as follows:
- Less than $100: Class C Misdemeanor — fine only, up to $500
- $100 – $749: Class B Misdemeanor — up to 180 days in county jail, fine up to $2,000
- $750 – $2,499: Class A Misdemeanor — up to 1 year in county jail, fine up to $4,000
- $2,500 – $29,999: State Jail Felony — 180 days to 2 years in state jail, fine up to $10,000
- $30,000 – $149,999: Third-Degree Felony — 2 to 10 years in TDCJ, fine up to $10,000
- $150,000 – $299,999: Second-Degree Felony — 2 to 20 years in TDCJ, fine up to $10,000
- $300,000 or more: First-Degree Felony — 5 to 99 years or life in TDCJ, fine up to $10,000
Beyond incarceration and fines, a fraud conviction can result in court-ordered restitution to the alleged victim, probation or community supervision with strict conditions, asset forfeiture, and the loss of professional licenses in regulated fields such as medicine, law, real estate, and accounting. Federal fraud convictions carry separate and often more severe sentencing guidelines, and federal sentences are served in the Bureau of Prisons without parole eligibility.
Defending Fraud Charges in Houston: Our Approach
Fraud prosecutions are built on documents, financial records, emails, bank statements, and the testimony of witnesses who often have their own motivations for cooperating with the government. These are paper cases, and the details matter enormously. The Downey Law Firm brings a meticulous, evidence-first approach to every fraud defense.
Challenging Intent: The Heart of Every Fraud Case
Because criminal fraud requires proof of intentional deception, demonstrating that the defendant did not knowingly misrepresent anything—or acted in good faith based on the information available—is often the most powerful defense available. Business transactions regularly involve ambiguous communications, evolving terms, and reliance on third-party representations. Our attorney examines the full documentary record to build a timeline that establishes context, explains apparent discrepancies, and shows that the defendant’s conduct was consistent with an honest business purpose.
Attacking Evidentiary Sufficiency
The prosecution bears the burden of proving each element of a fraud offense beyond a reasonable doubt. In many cases, the government’s evidence—even when voluminous—fails to establish the specific elements of the charged offense. Our firm works with forensic accountants and financial analysts to scrutinize the government’s financial calculations, challenge the reliability of cooperating witness testimony, and identify alternative explanations for the transactions at issue.
Suppression of Unlawfully Obtained Evidence
Fraud investigations frequently involve search warrants targeting business premises, personal residences, email accounts, and financial records. Law enforcement must satisfy Fourth Amendment requirements when conducting these searches, and warrant applications that rely on misleading or insufficient affidavits can be challenged through a Franks hearing. Electronic communications seized without a valid warrant, or financial records obtained through improper subpoenas, may be subject to suppression. Removing key evidence from the government’s case can fundamentally alter its strength and may lead to dismissal or significant charge reductions.
Entrapment and Government Overreach
In sting operations and undercover investigations targeting fraud schemes, law enforcement agents sometimes cross the line from passive observation to active inducement. When the government creates the fraudulent opportunity and pressures an individual to participate in conduct they would not have otherwise engaged in, an entrapment defense may be appropriate. Our firm examines the investigation’s entire history—including undercover agent communications, informant relationships, and the timing of government contact—to determine whether inducement occurred.
Coercion and Duress
In some fraud cases, an individual participates in a scheme under threat or compulsion by another party. When a defendant can demonstrate that they acted under genuine duress—facing an imminent threat of harm that left no reasonable opportunity to comply with the law—this may constitute a complete defense or significantly mitigate the circumstances presented at sentencing.
Negotiation and Pre-Charge Intervention
When a fraud investigation is still in its early stages, intervention by an experienced Houston fraud defense attorney before charges are filed can sometimes prevent indictment altogether. Prosecutors and federal agents regularly engage with defense counsel during the investigative phase, and presenting exculpatory evidence, correcting misimpressions, or demonstrating cooperation with legitimate inquiries can influence the charging decision. The Downey Law Firm has experience engaging with the Harris County District Attorney’s Office and with federal prosecutors in the Southern District of Texas at this critical pre-charge stage.
State vs. Federal Fraud Prosecution in Houston
One of the first questions that arises in any Houston fraud case is whether the charges will be brought in Harris County state court or in the U.S. District Court for the Southern District of Texas, which holds its principal session in the Bob Casey United States Courthouse in downtown Houston. The distinction matters enormously:
- Federal prosecution involves the U.S. Attorney’s Office, FBI, IRS-CI, HHS-OIG, and other federal agencies. Federal sentencing guidelines are mandatory starting points, sentences are served without parole, and federal grand jury proceedings are broad in scope. Federal cases also frequently involve expansive asset freezes and forfeiture actions that can affect a defendant’s ability to fund their own defense.
- State prosecution by the Harris County District Attorney’s Office is governed by the Texas Penal Code and the Texas Code of Criminal Procedure. Harris County’s Criminal Justice Center manages a high-volume docket, and the DA’s Financial Crimes Division handles complex fraud cases. State courts follow different procedural rules and sentencing structures than federal courts, and outcomes are shaped by local practices, judicial temperament, and the specific DA’s division handling the case.
The Downey Law Firm has defended clients in both state and federal fraud proceedings in Houston and brings a thorough understanding of both forums to every case we handle.
Board-Certified Criminal Defense in Harris County
Board certification in criminal law by the Texas Board of Legal Specialization is a credential held by fewer than 3% of licensed Texas attorneys. It signals demonstrated competence, peer recognition, and the experience needed to handle the most demanding criminal cases—including complex fraud and white collar matters. At The Downey Law Firm, our attorney has held this designation throughout his practice, and it has been earned through more than two decades of defending clients before Harris County juries, state district courts, and federal courts throughout the Southern District of Texas.
Our firm also maintains a network of forensic accountants, financial analysts, and expert witnesses who are prepared to assist in the analysis and presentation of complex financial evidence. Fraud cases are won or lost in the details, and we ensure that every record, transaction, and communication in your case receives the scrutiny it deserves.
What to Expect If You Are Under Fraud Investigation in Houston
Many individuals first learn they are under investigation not from an arrest, but from a more subtle signal: a call from an investigator requesting a “voluntary interview,” a subpoena for business records, a visit to their workplace, or a notice that a grand jury is examining their financial transactions. These contacts are not routine. They are investigative steps, and anything you say in response—even casual, off-hand statements—can later be used against you.
If you receive any of the following, contact The Downey Law Firm immediately before responding:
- A phone call or visit from an FBI agent, IRS-CI agent, postal inspector, or other federal investigator
- A request for a “voluntary” interview with law enforcement
- A subpoena for financial records, business documents, or email communications
- A grand jury subpoena (either as a witness or a target)
- A Civil Investigative Demand from a federal agency
- Notice that your business is under audit with potential criminal referral
- Any contact suggesting that a former employee, business partner, or associate has been cooperating with investigators
You have the right under the Fifth Amendment to remain silent and to have an attorney present before speaking with investigators. Exercising those rights is not an admission of guilt—it is a constitutionally protected decision that prevents self-incriminating statements from being used against you.
Serving Houston and Harris County
The Downey Law Firm represents clients facing fraud charges in communities throughout Harris County and the greater Houston metropolitan area, including Baytown, Bellaire, Deer Park, Friendswood, Humble, Katy, La Porte, League City, Missouri City, Pasadena, Pearland, Seabrook, Spring, Stafford, Sugar Land, and The Woodlands. We also appear regularly in the U.S. District Court for the Southern District of Texas for federal fraud and white collar matters. Our office at 2814 Hamilton St in Houston’s Midtown neighborhood is conveniently located for clients across the region.
Frequently Asked Questions: Houston Fraud Defense
What is the difference between civil fraud and criminal fraud in Texas?
Can a fraud charge be reduced or dismissed in Harris County?
Yes. The outcome of any fraud case depends on the specific facts, the strength of the prosecution’s evidence, the availability of defenses, and the quality of legal representation. In Harris County and in federal court, fraud charges have been reduced through pretrial negotiation, dismissed when the evidence fails to support the elements of the offense, or resulted in acquittal at trial when the jury determined the prosecution did not meet its burden of proof. Even in cases where some culpability exists, a skilled defense attorney can often negotiate to minimize charges, reduce sentencing exposure, or secure alternative dispositions such as deferred adjudication or probation where appropriate.
How long do fraud investigations typically last before charges are filed?
Fraud investigations—particularly federal ones—can span months or even years before any charges are filed. Law enforcement agencies compile records, conduct undercover operations, and develop cooperating witnesses extensively before approaching a grand jury. This extended pre-charge period is actually an opportunity: retaining a Houston fraud defense attorney early allows counsel to engage with investigators, present exculpatory information, and potentially influence the charging decision before it is made. Waiting until after an indictment is issued forfeits that window.
What assets can the government seize in a fraud case?
Both Texas and federal law authorize asset forfeiture in connection with fraud convictions. Under federal law, the government may seek forfeiture of any property that constitutes or is derived from proceeds of the fraud, as well as property used to facilitate the offense. In complex fraud cases, the government may obtain a pre-trial asset freeze through a restraining order, which can limit the defendant’s access to funds—including funds needed to retain defense counsel. Understanding the scope and timing of forfeiture risk is an important part of early case strategy, and our firm analyzes forfeiture exposure as part of every fraud defense engagement.
Do I need a fraud attorney even if I have not been formally charged?
Absolutely. Retaining counsel before charges are filed is one of the most important steps you can take. Once investigators have assembled their evidence and presented it to a grand jury, the charging decision has effectively been made. An experienced Houston fraud defense attorney can engage with the government at an early stage, prevent inadvertent self-incrimination, protect your business records and communications from overreaching subpoenas, and in some cases present information that leads investigators to conclude no chargeable conduct occurred. Call The Downey Law Firm at (713) 651-0400 as soon as you suspect you may be under investigation.
What makes fraud cases in Houston different from other cities?
Houston’s economic profile—anchored by the energy sector, the world’s largest medical complex, a major international port, and a diversified financial services industry—produces fraud cases that are often more complex and multi-jurisdictional than those in smaller markets. The Southern District of Texas, which covers Houston, is one of the busiest federal districts in the country, with the U.S. Attorney’s Office maintaining dedicated units for healthcare fraud, public corruption, financial crimes, and cybercrime. The Harris County District Attorney’s Office maintains a Financial Crimes Division that handles high-value fraud matters aggressively. Understanding how these offices operate, who handles specific case types, and what local prosecutors and judges prioritize is knowledge that only comes from years of practice in this specific legal community.
Contact a Houston Fraud Defense Attorney Today
Fraud charges—whether state or federal—move quickly, and the steps you take in the first days and weeks of an investigation can have lasting consequences for your case. At The Downey Law Firm, our board-certified criminal defense attorney has spent more than 25 years defending Houston-area clients against fraud and white collar crime charges, and we bring the depth of experience, forensic knowledge, and local court insight that complex fraud defense demands.
Call The Downey Law Firm at (713) 651-0400 or submit a confidential online inquiry to schedule your free case evaluation. Our office is located at 2814 Hamilton St, Houston, TX 77004, and we represent clients throughout Harris County and the Southern District of Texas.
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