New York City 18 U.S.C. 371 Conspiracy to Defraud the United States Lawyer

Federal prosecutors treat conspiracy charges as a force multiplier. A single indictment under 18 U.S.C. 371 conspiracy to defraud the United States can sweep together conduct that might otherwise be unchargeable, rope in individuals who never touched stolen funds or signed a fraudulent document, and carry penalties that rival the underlying offense itself. For defendants in New York City, where the Southern and Eastern Districts of New York are among the most active and well-resourced federal prosecution offices in the country, the weight of a Section 371 charge is felt immediately.

The statute operates on two distinct tracks. One track covers conspiracies to commit a specific federal offense. The other, the “defraud clause,” criminalizes agreements to impair, obstruct, or defeat the lawful functions of any federal agency through deceit, trickery, or dishonest means. That second track is deliberately broad, and courts have construed it broadly. A conspiracy charge can attach even where no underlying crime was completed, and the government does not need to prove that every defendant knew every detail of the scheme. An agreement, a knowing participant, and one overt act are the basic building blocks, and prosecutors are skilled at assembling them.

The Law Offices of Jason Goldman represents individuals under federal investigation and those who have already been indicted in cases involving Section 371 and related fraud statutes across New York and beyond. The earlier a defense attorney gets involved, the more options remain available. Pre-indictment representation, cooperation analysis, and proactive engagement with prosecutors can change the trajectory of a case before it reaches the courtroom.

What Section 371 Actually Charges, and Why It Matters in SDNY and EDNY Cases

The Southern District of New York, seated at 500 Pearl Street in lower Manhattan, and the Eastern District of New York, headquartered in Brooklyn, handle some of the most complex federal fraud prosecutions in the country. Tax fraud conspiracies, securities fraud schemes, procurement fraud, customs violations, Medicare and Medicaid billing conspiracies, and money laundering operations all frequently generate Section 371 charges either alongside or instead of more specific statutes.

The defraud clause gives prosecutors flexibility that specific offense statutes do not. When the government cannot cleanly prove a completed substantive crime, or when the alleged scheme targeted a government function rather than a specific criminal prohibition, Section 371 fills the gap. A group of individuals accused of deceiving the IRS through a coordinated underreporting scheme, even if none of them is charged with the underlying tax violation, can still face a conspiracy count. The same logic applies to schemes targeting the SEC, federal contracting agencies, or immigration authorities.

A conviction under Section 371 carries a maximum of five years in federal prison per count. In practice, however, federal sentences are shaped by the U.S. Sentencing Guidelines, which means the actual exposure in a large-scale fraud conspiracy can far exceed that ceiling when loss calculations, role enhancements, and other factors are layered in. This is a critical point that defendants often misunderstand when they first see the charge.

What the Law Offices of Jason Goldman Brings to a Federal Conspiracy Defense

Jason Goldman began his career as a Brooklyn prosecutor, which means he understands how federal and state charging decisions are made, what internal priorities shape case selection, and where investigative teams are most likely to have built weaknesses into their file. That prosecutorial background is not a selling point; it is a practical advantage that shapes how he approaches defense strategy from the first meeting forward.

Mr. Goldman has tried more than 25 cases to verdict and has represented corporate executives in finance, real estate, and hospitality, as well as lawyers, doctors, politicians, and others whose cases have attracted significant public attention. The New York Post has described him as “high-powered” and WABC’s Sid Rosenberg called him “brilliant.” Chelsea News noted his “history of getting high-profile defendants off.” These are the kinds of federal and high-stakes cases where his practice is most concentrated.

Section 371 cases are rarely simple. They involve voluminous discovery, co-defendants with potentially conflicting interests, government cooperators whose credibility must be attacked, and sentencing guidelines calculations that require expert analysis. Mr. Goldman approaches these matters through what he describes as meticulous preparation and narrative control, working simultaneously inside and outside the courtroom to protect both the outcome and the client’s reputation. For defendants whose professional licenses, business relationships, or public standing are at risk, that dual-track approach matters.

Common Fact Patterns That Generate Section 371 Charges in New York Federal Courts

• Tax conspiracy and IRS obstruction: Agreements to underreport income, conceal offshore accounts, falsify payroll records, or impede IRS audits frequently generate Section 371 defraud clause charges, particularly when multiple parties, including accountants, business partners, or family members, are alleged to have participated in the scheme.
• Federal procurement and contracting fraud: Bid-rigging, false certifications, and kickback arrangements involving federal contracts administered through agencies such as the Department of Defense or the General Services Administration routinely result in multi-defendant Section 371 indictments.
• Securities fraud conspiracies: In cases originating in New York’s financial industry, the SEC and DOJ frequently pair conspiracy charges under Section 371 with substantive securities fraud counts, particularly in insider trading rings or market manipulation schemes where the government can identify coordinated communications among participants.
• Health care billing conspiracies: Coordinated schemes to bill Medicare or Medicaid for services not rendered, or to generate fraudulent referrals through kickback arrangements, are aggressively prosecuted in both the Southern and Eastern Districts and almost always include a Section 371 conspiracy count alongside the substantive health care fraud charges.
• Customs and import fraud: Undervaluing goods, misclassifying merchandise to evade duties, or coordinating false documentation submitted to U.S. Customs and Border Protection can satisfy the defraud clause because the scheme targets the lawful revenue-collection function of a federal agency.
• Bank fraud and money laundering conspiracies: When individuals are accused of coordinating to deceive federally insured financial institutions or to move proceeds of fraud through layered transactions, prosecutors frequently stack Section 371 counts with charges under the bank fraud and money laundering statutes.
• Campaign finance and corruption conspiracies: Agreements to circumvent federal campaign finance laws, obstruct FEC oversight, or bribe federal officials through intermediaries have increasingly generated Section 371 defraud clause charges in cases involving political figures and their associates.

If You Are a Target, Subject, or Have Been Approached by Federal Agents

Federal investigations do not begin at the moment of indictment. By the time a grand jury hands up a Section 371 conspiracy charge, prosecutors have typically been building their case for months or years. If you have received a target letter from the U.S. Attorney’s Office for the Southern or Eastern District, been approached by FBI or IRS Criminal Investigation agents, received a grand jury subpoena for documents or testimony, or have reason to believe your business is under investigation, the time to engage a federal conspiracy attorney is now, before any further contact with investigators.

Do not speak with federal agents without counsel present. This is not a matter of appearing guilty; it is a matter of not creating a record that the government can use against you or anyone connected to the alleged scheme. Agents conducting conspiracy investigations are trained to develop admissions through seemingly casual conversations. A single statement that appears innocuous can become a key piece of evidence at trial or be used to pressure you toward cooperation.

Pre-indictment, defense counsel can communicate directly with the prosecutor’s office, conduct a parallel investigation through private investigators and forensic experts, assess whether any conduct falls outside the statute of limitations, and evaluate whether cooperation with the government is in the client’s interest. These decisions have consequences that extend through every later stage of the case, and they are impossible to reverse once a plea is entered or trial begins.

Cases arising in the Southern District are heard at the Daniel Patrick Moynihan U.S. Courthouse at 500 Pearl Street in Manhattan. EDNY matters are handled at the Theodore Roosevelt U.S. Courthouse in Brooklyn at 225 Cadman Plaza East. Understanding which district is handling an investigation and which prosecutors or agents are assigned shapes the defense approach from the start. The government attorneys who staff these offices are experienced, and the defense strategy must match that level of preparation.

Questions People Ask About Federal Conspiracy Charges Under Section 371

Do I have to have committed an underlying crime to be charged under Section 371?

Under the defraud clause of Section 371, no. The government must prove an agreement to impair a federal agency’s lawful function, knowing participation in that agreement, and at least one overt act in furtherance of the conspiracy. The conspiracy itself is the crime. A completed substantive offense is not required, and in fact the failure to complete the scheme does not affect culpability under this statute.

What qualifies as an “overt act” in a Section 371 conspiracy?

An overt act is any step taken in furtherance of the conspiracy. Courts have found that acts as minor as a phone call, the sending of an email, or attending a meeting can satisfy the overt act requirement. Only one overt act by any one conspirator is needed; every member does not need to have personally committed an overt act.

What is the statute of limitations for a Section 371 charge?

Federal conspiracy charges generally carry a five-year statute of limitations that begins to run from the last overt act committed in furtherance of the conspiracy. In continuing conspiracies, particularly those involving ongoing fraud against federal agencies, the limitations period can be significantly extended because the conspiracy is treated as ongoing until its final act. Tolling agreements and certain procedural events can also affect the calculation.

Can someone be charged under Section 371 based solely on what a co-conspirator did?

Yes. Under the Pinkerton doctrine, a co-conspirator can be held responsible for the reasonably foreseeable acts of other members of the conspiracy committed in furtherance of the agreement. This means a defendant who played a peripheral role may bear criminal responsibility for conduct they did not personally authorize, witness, or know about in detail. This doctrine is frequently litigated in multi-defendant federal fraud cases.

How does the government prove I knew about the conspiracy?

Proof of knowledge is typically assembled through communications records, financial transactions, witness testimony from cooperators, and circumstantial evidence showing that a defendant’s behavior was inconsistent with innocent conduct. In complex fraud conspiracies, the government often relies heavily on cooperating witnesses, whose credibility and potential bias must be thoroughly examined. Attacking the reliability and self-interest of cooperators is frequently central to the defense.

What happens to my professional license if I am convicted of a Section 371 conspiracy?

A federal felony conviction has licensing consequences that vary by profession and state. In New York, attorneys, physicians, accountants, financial advisors, and licensed contractors all face mandatory or discretionary license review and potential revocation following a federal felony conviction. These consequences are separate from the criminal sentence and can effectively end a career even after a defendant completes their prison term. The defense strategy must account for these collateral consequences from the beginning.

Is it possible to be charged under Section 371 for conduct that happened entirely outside the United States?

Yes, in certain circumstances. Federal courts have jurisdiction over conspiracies that have an effect within the United States or where at least one overt act occurred within the country. Given the global nature of financial fraud, tax evasion, and securities violations that touch U.S. markets or U.S. agencies, extraterritorial Section 371 prosecutions have been brought in both the Southern and Eastern Districts of New York.

How are co-defendants handled when each person played a different role in the conspiracy?

In multi-defendant conspiracies, the government typically charges all alleged participants in the same indictment and may seek to try them jointly. Defense strategies among co-defendants can conflict significantly. One defendant’s best move may harm another’s. The decision to pursue a unified defense, a separate trial, or to explore cooperation involves careful, fact-specific analysis that differs for each individual defendant. An attorney representing one co-defendant cannot represent another without an irreconcilable conflict of interest.

If the scheme was ultimately unsuccessful and no money was actually obtained, does that reduce my sentencing exposure?

Not necessarily. Under federal sentencing guidelines, the loss calculation in fraud conspiracies can include intended loss, meaning the amount the conspiracy was designed to obtain even if no funds were actually transferred. This can result in the same or similar guideline range as a completed fraud. However, the distinction between actual and intended loss, and arguments about the accuracy of the government’s loss figure, are important components of sentencing advocacy and must be addressed aggressively.

What is the difference between being a “target,” a “subject,” and a “witness” in a federal investigation?

The Department of Justice uses these designations to describe an individual’s status in a grand jury investigation. A target is someone the government has substantial evidence against and whom it considers a likely defendant. A subject is someone whose conduct falls within the scope of the investigation but who is not yet a target. A witness is someone with relevant knowledge but who is not currently a focus of criminal suspicion. These designations can shift, and receiving any of them, particularly in a letter or through an agent’s statement, warrants immediate consultation with federal defense counsel.

Federal Conspiracy Defense Representation Across New York City and the Greater Region

The Law Offices of Jason Goldman represents clients facing Section 371 charges and related federal fraud investigations throughout New York City and the surrounding region. This includes clients in Manhattan neighborhoods from Midtown and the Financial District through the Upper East Side, Harlem, and Washington Heights, as well as clients based in Brooklyn, including areas such as Downtown Brooklyn, Bay Ridge, Williamsburg, and Flatbush. The firm serves individuals in Queens, across neighborhoods from Flushing and Jamaica to Long Island City and Astoria, as well as clients in the Bronx and Staten Island.

Beyond the five boroughs, the firm represents clients from Westchester County communities including White Plains, Yonkers, New Rochelle, and Mount Vernon, as well as individuals located in Nassau and Suffolk Counties on Long Island. The firm also handles matters arising in New Jersey through Mr. Goldman’s admission to the New Jersey bar, covering clients in Newark, Jersey City, and the surrounding metropolitan area. Where appropriate, Mr. Goldman pursues pro hac vice admission to appear in federal courts throughout the country, serving clients whose cases originate elsewhere but whose attorneys require experienced federal conspiracy defense counsel.

New York City Federal Conspiracy Attorney for Section 371 Defense

A Section 371 indictment in the Southern or Eastern District of New York is not a charge to evaluate with a lawyer who handles it occasionally. These prosecutions are assembled by experienced federal prosecutors, backed by investigative resources that have been focused on the alleged scheme long before any arrest. Retaining a New York City federal conspiracy attorney who has sat on both sides of these matters, and who has the courtroom record and pre-trial instincts the situation demands, gives defendants the best opportunity to change the outcome. Contact the Law Offices of Jason Goldman today to discuss where your case stands and what a defense strategy should look like from this point forward.