White-collar crimes are nonviolent crimes that occur when a perpetrator uses deceitful tactics in order to achieve financial gain. It typically applies to those who hold white-collar jobs, which refers to non-labor-intensive office jobs.
These kinds of crimes impact businesses and individuals alike, often by causing significant financial losses and affecting their reputation; this could result in fewer investors or potential clients trusting the business. Identity theft, a common type of white-collar crime, affects individuals who may face heavy financial ramifications. This crime also impacts the economy, as it may lead to economic hardships, job loss, fewer investments, and decreased consumer trust.
If you have committed a white-collar crime, it is important to note the serious legal consequences that you may face, such as significant fines, lengthy jail time, and losing your employment and any professional licenses. To defend against these charges, it is crucial to secure the services of a skilled white-collar crimes attorney who can improve your chances of achieving a positive outcome in your case.
What Is Considered a White-Collar Crime?
What is white-collar crime? White-collar crimes are often classified as crimes that are not violent and are related to business, finances, or professional situations. As these crimes are typically committed in professional or corporate settings, they often involve deceit or fraudulent schemes by professional employees to illegally obtain financial gain.
Below are a few common examples of white-collar crimes:
Fraud
This kind of white-collar crime is one of the most common. It involves a variety of fraudulent schemes as a means of stealing money, property, or services.
There are several different kinds of fraud, including:
- Insurance Fraud – Insurance fraud involves including false or exaggerated information on an insurance claim in order to receive payments from the insurance company.
- Bank Fraud – This includes deceiving a financial institution to obtain money illegally, such as through identity theft, check kiting, and mortgage fraud.
- Securities Fraud – This kind of fraud includes misleading investors by giving them false information, insider trading, and Ponzi schemes. It can also include manipulating the financial market.
- Healthcare Fraud – Charging for unnecessary medical treatment, kickbacks, and upcoding are all forms of healthcare fraud.
Embezzlement
Embezzlement occurs when an individual who oversees funds or assets uses those specific funds or assets for personal reasons or personal gain. This kind of fraud often occurs in non-profit organizations, corporations, government agencies, or banks.
Insider Trading
This kind of fraud occurs when individuals trade securities using knowledge that is made available to them due to their job position but is not available to the public. It is illegal because it places other investors who are not privy to this information at an unfair disadvantage.
Money Laundering
Money laundering involves hiding the source of illegally obtained funds by cycling the funds through several legal financial transactions or businesses used as a front. Because these funds are placed in legitimate financial institutions that eventually enter back into the economy, it is difficult to trace the original source.
Bribery
Bribery involves giving or obtaining something valuable in exchange for something else or influencing an official to act in a certain way. This may refer to exchanging favors or funds.
Identity Theft
Identity theft involves one person stealing another person’s information that is unique to their identity. It can include using funds from a personal bank account or using another person’s social security number to open a new credit card.
Tax Evasion
This kind of fraud involves avoiding tax payments. It may look like an individual knowingly including false information on a tax form or transferring property in an illegal manner to avoid paying property taxes.
Are White-Collar Crimes Common?
White-collar crime is extremely common and significantly impacts businesses and the economy. This costs the United States up to $300 billion each year and has affected 35% of American businesses.
Unfortunately, due to technological advances, there has been a significant rise in cyber crimes and other white-collar crimes using artificial intelligence. It is now easier than ever for entities to conduct sophisticated scams online.
In fact, due to technology and globalization, white-collar crimes have expanded internationally. One example of this is offshore tax evasion, which is concealing assets or funds illegally in other countries as a way to avoid paying taxes.
Economic downturns can result in a spike in white-collar crimes as well. This is because individuals or businesses may face financial hardships and pressure to meet specific goals.
All too often, organizations are unaware that white-collar crimes are occurring, especially if they have reduced compliance due to experiencing financial hardships. Fortunately, it is possible for white-collar offenses to be discovered through internal investigations and audits. Through these investigations, businesses can gather evidence, identify discrepancies, and gather further information.
Legal Penalties for White-Collar Crimes
Penalties for white-collar crimes typically include fines and restitution to the victims. The specific penalties depend on the type of crime committed as well as other factors.
There are several factors that can influence the penalties or prison sentence ordered, including the scope and financial impact of the crime. For instance, embezzling a significant amount of funds will result in stiffer penalties than those assessed for embezzling smaller amounts. Other factors that may impact penalties include the number of victims who were affected by the offense, as well as the defendant’s intent and whether they have a criminal history.
Below are some potential penalties that you may face for white-collar crimes:
Identity Theft
If you are convicted of committing this crime, you may be charged with a Class 4 felony under Arizona law (ARS 13-1804). The punishment for this felony usually includes prison time of 1.5 to 12 years, as well as significant fines. Paying restitution to the victim may also be required.
Embezzlement
This type of fraud is considered a theft offense according to Arizona law. The penalties assessed depend on how much money was embezzled. Embezzling funds in excess of $25,000 is considered a Class 2 felony with a prison sentence of up to 12.5 years, significant fines, and restitution payments to victims.
Money Laundering
When significant funds are involved in a money laundering scheme, a long prison sentence may result. If convicted, you may face 2 to 12.5 years in prison, as well as very large fines.
Fraud Schemes
According to Arizona law, a fraud scheme is a Class 2 felony. Penalties may include 12.5 years in prison as well as considerable fines.
How Do You Defend Against White-Collar Crime?
White-collar crimes can have serious penalties, and it is critical that you understand some of the potential defenses your attorney may utilize during your case.
Below are some defense strategies commonly used for white-collar crimes:
Lack of Intent
In order to convict the defendant of a crime, the prosecution must be able to prove that there was intent to commit an illegal act. Using lack of intent as a defense argues that there was no criminal intent or knowledge of any wrongdoing. Therefore, there should be no conviction.
Insufficient Evidence
If the prosecution does not have sufficient evidence to prove that the defendant committed an offense, then the case may be dismissed. Additionally, if the evidence presented is questionable, a defense attorney can challenge its validity.
Procedural Errors
Illegally conducted investigations, invalid arrests, and other procedural errors could be used to invalidate the evidence used against the defendant and, as a result, dismiss the case. Failure to disclose evidence, improper admittance of evidence, failure to administer Miranda rights, and more can result in a questionable case. Other errors that may occur include improperly conducting an interview with a witness and even improper jury selection.
Entrapment
Entrapment occurs when a government official or law enforcement officer forces or persuades the defendant to commit the offense and then arrests the defendant for the crime. An important component of this defense strategy involves showing that the defendant would not have committed a crime of this nature if they had not been coerced.
Duress or Coercion
This defense strategy involves proving that the defendant was threatened with physical harm if they did not commit the offense. For example, the defendant committed the offense due to the fear that they or a family member would be physically hurt if they did not commit the crime.
Mistaken Identity
Mistaken identity is a defense strategy that demonstrates proof that the defendant was wrongly identified as the perpetrator. If a defense attorney can prove someone else committed the crime, the defendant was wrongly accused and should not be convicted.
Violation of Constitutional Rights
Any violation of your Constitutional rights can be used as a defense in a white-collar crime case. Often, Fourth Amendment violations – violations of the amendment that states that the government may not carry out unreasonable searches or seizures – can lead to a dismissal of the case. If there is reason to believe that the evidence gathered against the defendant was illegally obtained, then it cannot be used in the case.
Negotiated Settlements
A negotiated settlement for a white-collar crime involves an agreement that is made between the government and the defendant. Typically, this settlement prevents the case from going to trial and can minimize the penalties you receive.
The Role of a White-Collar Crime Attorney
Due to the serious penalties that you may face if convicted of a white-collar crime, it is important to hire an attorney who is experienced in white-collar crimes and the investigation process.
A white-collar crime attorney can gather useful and effective evidence for your defense while searching for any inconsistencies in the prosecution’s case. They can also conduct detailed investigations, interview any witnesses, analyze pertinent evidence, and build a strong defense tailored to your circumstances.
Additionally, an attorney can negotiate with prosecutors on your behalf, potentially minimizing the penalties you face and potentially preventing the case from going to trial. They can also help you navigate the complexities of the legal process and provide support in reducing reputational damage due to a white-collar criminal conviction through strategic communication.
Common Misconceptions About White-Collar Crime
There are several misconceptions regarding white-collar crimes.
Below are some of the most commonly believed myths.
- Myth 1: White-collar crimes don’t involve jail time: In fact, many white-collar crime penalties include serving time in prison. The amount of prison time may vary depending on the impact of the crime, how many victims are affected, and if a significant amount of money was involved.
- Myth 2: Only high-level executives commit white-collar crimes: Research disproves this myth, as many white-collar crimes are committed by middle class caucasian men in their late 30s to late 40s. These men have some higher education and may have committed small crimes in the past; they typically are married, are employed, and have a good moral standing in their community.
- Myth 3: White-collar crimes are victimless: This is certainly untrue, as many individuals and companies are impacted by these crimes. Economic downturn caused by white-collar crimes can also affect society as a whole.
- Myth 4: White-collar crimes are easy to prove: Because these crimes are often committed discreetly and over time to conceal criminal actions, these crimes are often not easy to identify and can also be difficult to prove.
- Myth 5: Cybersecurity measures eliminate all risks of white-collar crimes: With more technological advances, especially regarding artificial intelligence, there is still the risk of cyber crimes. Fortunately, increased vigilance via cybersecurity can help reduce white-collar crimes.
- Myth 6: White-collar crimes are only prosecuted at the federal level: White-collar crimes are prosecuted at the federal level and at the state level.
- Myth 7: Hiring an attorney after charges are filed is all you need to do: This myth refers to the assumption that a legal defense is only necessary if the defendant is facing criminal charges. Truthfully, a white-collar crime case may be built over many years after FBI, SEC, or IRS investigations take place.
Failing to seek legal representation right away means that you risk violation of your Constitutional rights. An attorney can provide legal advice regarding how to respond to subpoenas or warrants. An attorney can also help you identify weaknesses in your case and avoid making mistakes in the statements or actions you make that could hinder your defense.
How The Valley Law Group Can Help with White-Collar Crime Cases in Arizona
The Valley Law Group is an Arizona based law firm with offices in Phoenix, Gilbert, Scottsdale, and Peoria. We have significant experience handling white-collar defense and investigations. Our legal team can help you develop a personalized defense strategy tailored to your unique white-collar criminal case. We will create a formidable defense to help you ensure you have the best possible chance of avoiding or minimizing your white-collar charges.
Our attorneys will examine financial records and gather documentation to identify inconsistencies in the prosecution’s case against you. We will work diligently to dismantle the evidence against you and highlight key evidence that supports your case.
Taking the First Step Toward Defense
If you are facing a white-collar crime case, you are not only facing serious penalties but also lifelong consequences with a conviction. It is crucial to take the first step and secure a skilled white-collar crime attorney who can help you minimize the negative impacts on your life.
Don’t wait to seek legal counsel – building a proactive defense strategy as early as possible is necessary to minimize penalties and protect your reputation. Contact The Valley Law Group today to discuss your white-collar crime case and explore the options available to you.
Sources:
- Cornell Law School. (n.d.). White-collar crime. Legal Information Institute. https://www.law.cornell.edu/wex/white-collar_crime
- Arizona Revised Statutes § 13-2310 (n.d.). Fraudulent schemes and artifices. https://www.azleg.gov/ars/13/02310.htm
- Arizona Revised Statutes § 13-2317 (n.d.). Money laundering; classifications. https://www.azleg.gov/ars/13/02317.htm
- Arizona Revised Statutes § 13-2008 (n.d.). Identity theft; penalties; restitution. https://www.azleg.gov/ars/13/02008.htm
- Arizona Revised Statutes § 13-1802 (n.d.). Theft; classification. https://www.azleg.gov/ars/13/01802.htm
- Federal Bureau of Investigation. (n.d.). FBI warns of increasing threat of cybercriminals utilizing artificial intelligence. https://www.fbi.gov/contact-us/field-offices/sanfrancisco/news/fbi-warns-of-increasing-threat-of-cyber-criminals-utilizing-artificial-intelligence
- Smith, J. (n.d.). The impact of white-collar crime on society. University of New Hampshire Scholars’ Repository. https://scholars.unh.edu/cgi/viewcontent.cgi?article=1676&context=honors
Jonathan Roeder, Founder/Director of Marketing of The Valley Law Group, is an Arizona native who has dedicated his life and career to the service of others. After graduating salutatorian of his high school class, Jonathan attended beautiful and prestigious Pepperdine University, where he majored in Political Science. During his tenure at Pepperdine University, his passion for helping others grew after securing a clinical position with a residential treatment center for juveniles with substance addictions. Post-graduation, Jonathan returned to Arizona and served as a residential manager for mentally and physically disabled homes.
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