White Collar Crime: A Brief Overview
What is it?
White-Collar Crime is generally considered a crime for financial gain which is committed by means of fraud or misrepresentation. According to the Federal Bureau of Investigation (FBI), “White-collar crime is generally non-violent in nature and includes public corruption, health care fraud, mortgage fraud, securities fraud, and money laundering, to name a few.”
White-Collar Crime offenses are enumerated by both state and federal legislation. The federal government has unlimited resources and spends those resources on the investigation and prosecution of white-collar crime.
What makes a case federal?
Often, the Department of Justice (DOJ) or another other federal agency brings forth a white-collar prosecution. For the federal government to bring those charges there must be federal jurisdiction. The United States Attorney’s Office or the DOJ Criminal Division must decide whether federal jurisdiction exists. Jurisdiction is based upon the Commerce Clause, which provides that Congress may “regulate Commerce with Foreign Nations, and among the several states, and with the Indian Tribes.” U.S Const., art. I, Sec.8, cl.3.
Examples of White-Collar Crime Charges:
Federal Conspiracy Statutes
Federal law has a variety of codified sections that allow for a conspiracy charge. The crux of conspiracy charges as it pertains to white-collar crime is found in United States Code Title 18 Section 371- Conspiracy to commit offense or defraud the United States. That statute provides:
If two or more persons conspire either to commit any offense against the United States, or to defraud the United States, or any agency thereof in any manner or for any purpose, and one or more of such persons do any act to effect the object of the conspiracy, each shall be fined under this title or imprisoned not more than five years, or both.
If, however, the offense, the commission of which is the object of the conspiracy, is a misdemeanor only, the punishment for such conspiracy shall not exceed the maximum punishment provided for such misdemeanor.
Commonly used charging statutes: Mail and Wire Fraud
The federal government most often uses the mail and wire fraud statutes to bring forth white-collar charges. Why? Because on their face, the statutes are simple and broad. Title 18, Section 1341 Titled “Frauds and Swindles,” and commonly known as Mail Fraud provides:
Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, or to sell, dispose of, loan, exchange, alter, give away, distribute, supply, or furnish or
procure for unlawful use any counterfeit or spurious coin, obligation, security, or other article, or anything represented to be or intimated or held out to be such counterfeit or spurious article, for the purpose of executing such scheme or artifice …
The maximum punishment is a term of imprisonment not more than 20 years.
United States Code, Title 18, 1343, titled “Fraud by wire, radio, or television,” and commonly referred to as “Wire Fraud” is perhaps the most charged statute for white collar crimes by federal prosecutors and provides:
Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, transmits or causes to be transmitted by means of wire, radio, or television communication in interstate or foreign commerce, any writings, signs, signals, pictures, or sounds for the purpose of executing such scheme or artifice …
The maximum punishment is a term of imprisonment not more than 20 years.
Jurisdiction for mail and wire fraud is established with the use of mails and wires. Under the mail fraud statute, any use of federal mails, whether intrastate or interstate, could establish federal jurisdiction.
Jurisdiction under the Wire fraud statute relies on the Commerce Clause. Wire charges by the government must be used in interstate or foreign commerce to establish federal jurisdiction.
It is important to note that the mail or wire need not itself be false or fraudulent, but those communications must be in furtherance of the fraudulent scheme.
Other Common White-Collar Crimes:
- Health Care Fraud
- Tax Fraud
- Tax Evasion
- Money Laundering
- Securities Fraud
- Bank Fraud
What to do if you are charged with a white-collar crime or are under investigation?
The government has unlimited resources. Whether you are currently charged or under investigation, it is important to speak with a qualified attorney. Do not speak to law enforcement without representation.
These charges or investigations are daunting and can quickly destroy your career or reputation. As a former federal prosecutor, Robert Almonte was assigned to the Complex Fraud/Public Corruption Division, which is dedicated to the investigation and prosecution of white-collar crimes. As a prosecutor, Robert Almonte managed the most difficult cases and has the expertise to successfully navigate these sensitive and high-stake matters. Don’t risk your professional license, reputation, or freedom- Call Today or Contact Us Today.
The information provided on this website is for general information purposes only. Nothing on this site should be taken as legal advice.