Federal White Collar Crime

If you or someone you love is being investigated for, or has been charged with, a federal white collar crime, the first thing to know is that "white collar crime" is not one law. It is a name for nonviolent crimes about money, usually fraud or lying. In general, it means someone used a business or job to take money or property through fraud. The penalties depend on which law is charged, and one of the biggest early decisions is when to bring in a lawyer.

After years of public attention to corporate greed and corporate crime, the federal government has taken a tougher position on white collar crime. The FBI has said that white collar crime costs victims more than $300 billion each year. Corporate officers sometimes assume they are protected from blame, or they feel too embarrassed to deal with the problem, so they wait until late in a government investigation to get a lawyer. Try not to make that mistake. Criminal Center represents people in federal white collar cases and can help you or a loved one prepare a defense.

Which federal crimes count as white collar crimes?

Some of the most commonly prosecuted federal white collar crimes are bribery, extortion, fraud, theft, kickbacks, and money laundering. Each one is covered by its own criminal law. What makes them part of a white collar case is that at least one person used a business position to profit illegally from fraud. Common federal white collar charges include:

• Wire fraud (18 U.S.C. § 1343)
• Mail fraud (18 U.S.C. § 1341)
• Bank and mortgage fraud (18 U.S.C. § 1344)
• Health care fraud
• Tax fraud and tax evasion
• Identity theft and aggravated identity theft
• Money laundering
• Embezzlement and employee theft
• Fraud conspiracy

How do white collar investigations usually start?

Sometimes the government starts its own investigation into activity it has been watching. Corporate whistleblowers are also one of the main ways the FBI learns about possible white collar crimes. Other cases start with a tip from a customer, a bank, or an audit. Agents often gather bank records, emails, and business files for months before anyone is charged.

This matters because there may be motivated employees inside your company who are giving the government information about alleged fraud. You may first learn about an investigation through a grand jury subpoena (a court order to turn over documents or testify), a target letter (a letter from prosecutors saying you are a focus of the investigation), or a visit from agents. Before you talk to the government, talk with a lawyer.

Can talking to agents make things worse?

Yes. Lying to a federal agent is its own crime, even if you are never charged with anything else. Making a materially false statement to federal investigators carries up to 5 years in prison (18 U.S.C. § 1001).

You do not have to answer agents' questions without a lawyer. Politely say you want to speak with a lawyer first.

Can a company officer be charged just because of their position?

Corporate officers sometimes worry that they can be charged just because of their rank. The "responsible corporate officer" doctrine comes from Supreme Court cases about food and drug safety laws (United States v. Dotterweich, 1943; United States v. Park, 1975). Under it, the government can charge an officer who had the power to prevent or fix a violation, even without proof that the officer knew about it or ordered it.

But the doctrine is narrow. It applies mainly to "public welfare" laws, like the Food, Drug, and Cosmetic Act, and usually to misdemeanors. For fraud crimes like mail, wire, or bank fraud, the government must prove that you personally took part and meant to defraud. Being a high-ranking officer is not enough by itself.

Even so, the fear of being blamed for what happened inside the company can push officers to cooperate with an investigation. Talking with law enforcement about your company can sometimes be a smart choice, but only after talking with your lawyer, and with your lawyer present.

How much prison time can a white collar conviction bring?

The sentence depends on the charge. For example, wire fraud and mail fraud carry up to 20 years per count, and bank fraud carries up to 30 years. Agreeing with others to commit mail, wire, or bank fraud carries the same penalties as the fraud itself (18 U.S.C. § 1349).

Judges also look to the federal sentencing guidelines, the rules used to calculate a recommended sentence range. Congress created them in the Sentencing Reform Act of 1984, and they took effect on November 1, 1987. Since United States v. Booker (2005), they are advisory, but judges must still calculate and consider them.

For most fraud crimes, the guidelines raise the range as the loss amount goes up (U.S. Sentencing Guidelines § 2B1.1). The judge must also usually order restitution, which means paying back the victims (18 U.S.C. § 3663A).

Many of the crimes in a white collar case could also be prosecuted in state court. But once a case is federal, the possible penalties can be much more severe. Prosecutors are more likely to put major resources into a case when a lot of money is involved or when a well-known company is involved, because the government wants to show it is taking a strong stand against financial crime and protecting the public.

Should you cooperate with the government?

One way people under investigation try to lower their exposure is to help the government prosecute other employees of the same company, or others believed to be involved in the scheme. If the prosecutor files a motion saying you gave "substantial assistance," the judge may give a sentence below the guideline range (U.S. Sentencing Guidelines § 5K1.1).

Only the prosecutor can file that motion. And cooperating means telling the government things that can also be used against you in your own case. Don't make this decision without a lawyer's advice.

Why bring in a lawyer before you are charged?

A white collar case calls for a lawyer who knows every part of the investigation and trial process, including how to build credibility and a working relationship with the federal prosecutor handling your case. The earlier you bring in a lawyer, the better your chance of not accidentally telling the government something that could hurt your case later.

What should you do next?

Book a consultation to talk it through with Brandon Sample.

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