“White-collar crime” is a term that is used to refer to nonviolent crimes which are committed by defendants solely for financial gain. White-collar crimes are often motivated by a desire to acquire money or property or possibly to obtain services.
In legal terms, a white-collar crime is a crime that is committed by a person who works in an office and is attired in a white-collared shirt when they go to work, typically in a business situation. The crime often involves a form of financial theft or fraud.
White-collar crimes are prosecuted, like all other crimes, by government attorneys who are known as “prosecutors.” Depending on the facts and nature of the white-collar crime at issue in a case, a person may be prosecuted for violation of state law by an attorney in a district attorney’s office. Or, if the crime is a violation of federal law, a U.S. Attorney or Assistant U.S. Attorney would prosecute the perpetrator in federal court.
If the white-collar crime is committed in a specific state, county, or municipality, that jurisdiction’s prosecution office is responsible for the prosecution of the perpetrator. When determining whether or not a jurisdiction will prosecute a white-collar crime, the prosecution lawyer refers to the police report.
They analyze the facts of the case and determine what charges, if any, they will file. The prosecutor may also interview the police about their evidence and assess the quality of the evidence.
In some cases, a district attorney or other state or local prosecutor presents the case to a grand jury, and the grand jury decides whether to issue an indictment of the perpetrator and start a criminal case.
If the white-collar crime is a federal offense, the U.S. Attorney first presents evidence to a federal grand jury to show that the crime was committed. The federal grand jury makes the decision as to whether or not to charge the perpetrator.
A grand jury is composed of 16 to 23 randomly selected people from the community. The jurors on a grand jury consider all of the evidence and decide what charges, if any, are to be filed in an indictment against the perpetrator.
It is important to note that at least 12 members must concur on an indictment.
After the grand jury decides on the filing of an indictment, the prosecution then begins preparing for pre-trial hearings and, if necessary, for trial. Additionally, the perpetrator of the crime, who has now become a defendant in a criminal case, may hire their own attorney to represent them. Or, if they cannot afford to hire an attorney, the government pays for one. This is true in both state and federal courts.
What Are Some Examples of White-Collar Crimes?
As mentioned above, white-collar crime is an umbrella term that encompasses an array of nonviolent crimes committed for financial gain. Thus, there are a variety of crimes that may qualify as white-collar crimes. For example, the following is a non-exhaustive list of examples of white-collar crimes:
- Criminal Fraud: Criminal fraud is a type of white-collar crime that involves a scheme to cheat or deceive another person or entity through the use of fraudulent misrepresentation. Criminal fraud is perpetrated to obtain financial gain.
- According to criminal fraud law, any action that is intended to deceive another through false representations of fact that results in legal detriment to the person who relied on the information could be criminal fraud.
- Examples of criminal fraud include identity theft and forgery;
- Embezzlement: Embezzlement is a white-collar crime that occurs when a person who is in a position of trust with respect to another person, e.g., they are an accountant entrusted to handle the finances of a business, illegally takes money or property for their own personal use;
- Racketeering: Racketeering is a white-collar crime that involves the operation of an illegal enterprise or criminal racket. Racketeering is generally associated with organized crime. Examples of criminal rackets would be the importation and sale of illegal drugs, prostitution rings, and human trafficking.
- Also, “protection rackets” involve a criminal organization extorting money from businesses for “protection” against crimes, which would most likely be committed by the criminal organization itself. A historical example of racketeering would be the activities of the “Mafia;”
- Securities Fraud: Securities fraud is any fraud that is used in connection with the sale of a security. Securities fraud law is generally intended to prevent anyone from making untrue statements and/or failing to make a statement so as to deceive investors;
- Tax Evasion: Tax evasion occurs when a person commits a criminal act that is designed to defraud the federal Internal Revenue Service (“IRS”) or a state tax authority. The definition of tax evasion is very broad. The broad definition is intentional, as it allows the IRS to pursue a person for almost any known misstatements on their taxes.
- Tax evasion generally involves an individual or corporation misrepresenting information about a tax filing to the IRS in an attempt to pay less tax.
What Are the Punishments for White-Collar Crimes?
It is difficult to specify the punishment for a white-collar crime. The punishment depends on the exact crime, e.g., embezzlement or fraud or another crime, the law of the state in which the crime is committed, and the criminal record of the defendant. If a defendant has a criminal record and their offense in a particular case is a second or subsequent offense, their punishment may be more severe.
Generally speaking, if the white-collar crime is a theft offense, the punishment may be related to the amount of economic damages the defendant caused. For example, if the amount of economic damage is less than $500, the crime may be considered petty theft and charged as a misdemeanor.
However, if the amount of economic damage involved is greater than $500, then the crime may be charged as a felony. But, again, this depends on the law of the state in which the defendant is prosecuted.
Generally speaking, penalties for violations of white-collar crime laws can include but may not be limited to:
- Fines of up to $1,000 for misdemeanor offenses or heavy fines of up to $10,000 or more for felonies;
- Imprisonment for less than 1 year for misdemeanor offenses, or imprisonment for 10 years or more for felony offenses;
- Forfeiture of all assets, monetary funds, and/or property associated with the offense or gained as a result of the offense;
- Restitution, that is, paying back money that the victim lost as a result of the crime;
- Loss of licensure, loss of right to vote, loss of right to possess a firearm if the perpetrator is convicted of a felony;
- Supervised release, probation, or home arrest.
Who Determines the Punishment for White-Collar Crimes?
The judge who sentences the defendant after they have been convicted of a white-collar crime determines the defendant’s sentence. Of course, judges are guided by the law of the state in which the crime has been prosecuted if they are a judge in a state court.
In federal courts, federal judges follow the U.S. Federal Sentencing Guidelines, which give very specific directions to federal judges about how to determine the defendant’s sentence in any given case. Some states also have fairly detailed guidelines. Others allow more deference to the court’s judgment.
Are There Defenses to a White-Collar Crime Prosecution?
Again, the specific defenses that may be available depend on the exact offense with which a person is charged and the facts of their particular case.
In all criminal cases, the defendant can always attack the prosecution’s evidence and work to create “reasonable doubt” in the minds of the jurors as to the defendant’s guilt.
What Should I Do if I Have Been Charged With a White-Collar Crime?
If a person is charged with a white-collar crime, they do not want to try to deal with it themselves. They do not want to speak to law enforcement before they have consulted a lawyer. They should not try to negotiate a resolution of their case without a lawyer’s advice.
Basically, the person’s best bet is to consult a white-collar crime lawyer as soon as possible and certainly before making any other moves.
Do I Need an Attorney for a White-Collar Crime?
If you are being accused of committing a white-collar crime, you want to consult an experienced local criminal defense attorney.
LegalMatch.com can connect you to a lawyer who is best suited to helping you understand your state’s specific laws regarding white-collar crimes and what your legal rights and legal options are under those laws. Also, your attorney will be able to represent you in court as needed.
