Criminal Law

White-Collar Crimes

Key Takeaways:

  • White-collar crime is named for the white dress shirts common in office and professional jobs.
  • White-collar crimes are nonviolent crimes motivated by financial gain committed by government, banking, and other business industry professionals.
  • White-collar crimes can involve large amounts of money or small funds taken over time.

Financial crimes can be complex cases that involve large amounts of money. Also known as white-collar crimes, financial theft, and fraud, anyone can commit them, including government officials, administrators, or business owners. Unfortunately, because white-collar crimes can be so complicated, innocent people can easily be caught up in financial dealings and face criminal charges.

White-collar crimes should not be handled by just any lawyer. If you are charged with white-collar crimes, you could face lengthy prison sentences, hefty fines, and a felony record. Attorneys representing defendants in financial fraud can help their clients fight felony criminal charges. The information below provides an overview of white-collar crimes and criminal defense.

If you are facing criminal charges for a white-collar or any other crime, contact a criminal defense attorney as soon as possible. They will be the best resource for you and your defense.

What Is White-Collar Crime?

White-collar crime is named for the white dress shirts common in office and professional jobs. White-collar crimes are nonviolent crimes motivated by financial gain and committed by government, banking, and other business professionals. White-collar crimes can involve large amounts of money or small funds over time.

Types of White-Collar Crimes

The following is a list of several common types of white-collar crime, including:

  • Fraud schemes (mortgage fraud, health care fraud, securities fraud, Investment fraud, Credit Card fraud, Ponzi schemes, Insurance fraud, Bank fraud)
  • Money laundering
  • Corporate schemes and corporate fraud
  • Forgery
  • Tax crimes (tax evasion, tax fraud)
  • Computer crime
  • Embezzlement
  • Bribery
  • Identity theft
  • Counterfeiting
  • Insider trading
  • Organized crime (Racketeering, Extortion)

There is no specific law that defines a white-collar crime. However, state and federal laws make specific activities crimes. Someone accused of committing a financial crime may face multiple criminal charges related to fraud, false representations, and organized criminal activity.

Fraud and white-collar crimes may be violations of state and federal law. Even if the criminal activity only occurred in one state, it may still be a federal offense if it was conducted using national banks, the internet, international activity, foreign parties, or the alleged victims lived in different states.

Cybercrimes are presenting a new frontier of potential and possible white-collar crimes for white-collar criminals. While not all cyber crimes are white-collar crimes, many fit the definition.

Investigating White-Collar Crimes

White-collar crimes can be challenging to detect. In many cases, the theft will involve small amounts of money over time. With careful record-keeping, the person committing the theft can cover up the smaller amounts so that no one knows the money is missing. Even if only a few dollars are taken here and there, it can quickly add up. Over years, the perpetrator may be accused of taking millions of dollars.

Another way these offenses are detected is because of escalated theft. After getting away with it for so long, the individual may try to increase the amount taken until, finally, someone begins to suspect there is a problem.

Many financial crimes are initially reported to law enforcement by private businesses, banks, or public institutions. A corporation or insurance company may begin an internal investigation if they notice questionable activity, missing property, or accounting irregularities. The business may then contact federal or state agencies to help with the investigation if they believe there may be evidence of criminal activity.

Investigating a white-collar crime often involves multiple parties, including private and government investigators. Some law enforcement agencies that may be involved in investigating financial fraud include the FBI (Federal Bureau of Investigation), The Department of Justice, the Internal Revenue Service, the Securities and Exchange Commission, various state agencies, and the police.

Investigations are costly and time-consuming. They rely on exhaustive examination of documents, emails, and online transactions. Investigations must also be thorough.

Penalties for White-Collar Crimes

The penalties for white-collar crimes depend on the specific criminal charges, the amount of money at stake, and the alleged victims involved. If a white-collar crime is prosecuted as a misdemeanor, it may involve up to a year in jail, fines, and restitution of any money taken.

As a felony, the consequences can be much more severe. Factors that can increase the penalties for a white-collar crime include:

  • Amount of money taken
  • The defendant was in a position of trust with the victim
  • The extent of the criminal enterprise
  • Number of victims involved
  • Whether the crime involved insurance fraud
  • Whether the government was the victim of illegal activity

The potential criminal sentences for white-collar crimes may seem lower than violent crimes. The penalties may seem lower because no one was physically hurt and because many white-collar criminals are first-time offenders and are not thought to be at high risk of being repeat offenders. However, the government actively investigates and prosecutes those who commit financial and white-collar offenses.

Criminal Defense Lawyers for White-Collar Crimes

White-collar criminal offenses for insurance fraud, embezzlement, or other financial crimes can lead to serious jail time. Many people charged with corporate crimes hope that by cooperating with investigators, everything will work out because they did nothing wrong.

If you are accused of financial crimes or suspect you are being investigated for fraud, contact an experienced criminal defense lawyer who understands the complex nature of white-collar criminal allegations.

Was this helpful?