Federal White-Collar Crime
Overview of Federal White Collar Crimes
Federal White-Collar Crime is the general term applied to an intricate and evolving landscape of federal criminal laws that regulate corporate and financial activities. Below is a snapshot of various statutes, including 18 U.S.C. Chapter 63 covering Mail Fraud and Other Fraud Offenses, Chapter 96 addressing RICO violations, and the laws regarding Securities Fraud, Money Laundering, Health Care Fraud, Bank Fraud, Mortgage Fraud, and more (see also, our Fraud Offenses page). Each statute consists of specific elements that the government must prove to establish a violation.
COMMON Federal White Collar Charges
Mail Fraud and Other Fraud Offenses (18 U.S.C. Chapter 63)
Statutes Included: This chapter includes statutes like § 1343 (Fraud by wire, radio, or television), § 1344 (Bank fraud), § 1345 (Injunctions against fraud), § 1346 (Definition of “scheme or artifice to defraud”), § 1347 (Health care fraud), § 1348 (Securities and commodities fraud), § 1349 (Attempt and conspiracy), § 1350 (Failure of corporate officers to certify financial reports), § 1351.
Elements of Mail Fraud (18 U.S.C. § 1341): There are two primary elements in mail fraud:
Devising or intending to devise a scheme to defraud or to perform specified fraudulent acts.
Use of the mail for the purpose of executing, or attempting to execute, the scheme or specified fraudulent acts.
Securities Fraud (18 U.S.C. § 1348)
Elements of Securities Fraud: The statute outlines two main elements:
Knowingly executing or attempting to execute a scheme or artifice to defraud any person in connection with any security or commodity.
Obtaining, by false or fraudulent pretenses, representations, or promises, any money or property in connection with the purchase or sale of any commodity for future delivery, or any security.
Money Laundering (18 U.S.C. § 1956)
Elements of the Crime:
Conducting Financial Transactions: Knowing involvement in a financial transaction with proceeds from unlawful activities.
Transportation, Transmission, or Transfer of Funds: Transporting, transmitting, or transferring monetary instruments or funds internationally in relation to unlawful activities.
Intent: Intent to promote specified unlawful activities, conceal or disguise the nature or source of proceeds, or avoid transaction reporting requirements under state or federal law.
Health Care Fraud (18 U.S.C. § 1347)
Elements of the Crime:
Executing or attempting to execute a scheme to defraud any health care benefit program or to obtain money or property of any health care benefit program through false or fraudulent pretenses, representations, or promises.
Notably, actual knowledge of this section or specific intent to commit a violation of this section is not required for a violation.
Bank Fraud (18 U.S.C. § 1344)
Elements of the Crime:
Knowingly executing or attempting to execute a scheme or artifice to defraud a financial institution or to obtain any of the moneys, funds, credits, assets, securities, or other property owned by, or under the custody or control of, a financial institution by means of false or fraudulent pretenses, representations, or promises.
Mortgage Fraud (18 U.S.C. § 1014)
Elements of the Crime:
Knowingly making false statements or willfully overvaluing any property or security for the purpose of influencing in any way the action of the enumerated agencies and organizations.
The venue for a violation of this section is indictable either in the district in which the false statement is prepared and mailed, or in which the statement is received.
Securities Fraud (15 U.S.C. § 78j(b) and 17 CFR 240.10b-5)
Elements of the Crime:
Willful use of a device or scheme to defraud someone, making an untrue statement of a material fact, failing to disclose a material fact that resulted in misleading statements, or engaging in fraudulent business acts.
Actions or statements made in connection with the purchase or sale of a specified security.
Direct or indirect use of an instrument or facility in connection with these acts, statements, or omissions.
Acting knowingly in conducting these actions or making these statements.
Note: The detailed instructions to the jury for securities fraud are available on the Ninth Circuit’s website.
Public Corruption-Related Charges (18 U.S. Code § 201)
Elements of the Crime:
Giving, offering, or promising anything of value to a public official with the intent to influence any official act, or to induce the official to do or omit to do any act in violation of the lawful duty of such official.
A public official demanding, seeking, receiving, accepting, or agreeing to receive or accept anything of value in return for being influenced in the performance of any official act or being induced to do or omit to do any act in violation of their official duty.
The statute also covers giving or offering anything of value to any person with the intent to influence the testimony of a witness or to induce the person to absent themselves from testimony.
Criminal Tax Prosecutions (26 U.S.C. § 7201)
Elements of the Crime:
The defendant owed more federal income tax than was declared due on their tax return for that year.
The defendant knew that more federal income tax was owed than was declared due on their tax return.
The defendant made an affirmative attempt to evade or defeat such additional tax.
The defendant acted willfully in attempting to evade or defeat such additional tax.
Note: The detailed instructions to the jury for tax evasion are available on the Ninth Circuit’s website.
Racketeer Influenced and Corrupt Organizations (RICO) (18 U.S.C. Chapter 96)
Key Provisions (18 U.S.C. § 1962):
Subsection (a): It's unlawful for any person who has received income from racketeering activity or an unlawful debt to invest that income in an enterprise affecting interstate or foreign commerce.
Subsection (b): It's unlawful to acquire or maintain any interest in or control of an enterprise engaged in interstate or foreign commerce through racketeering activity or collection of an unlawful debt.
Subsection (c): It's unlawful for any person associated with an enterprise engaged in interstate or foreign commerce to conduct the enterprise's affairs through racketeering activity.
Subsection (d): It's unlawful to conspire to violate any of the above provisions.
It is important to note that the summaries provided above are general recitations of the law, not the actual statutory language itself. The statutes themselves can be found through the links provided, though even those may be updated from time to time. The interpretation of these statutes is subject to constant updates and changes, given ever-changing case law and legislation. As a result, it is crucial to consult with a law firm regarding the application of these principles to the specific circumstances of your case to ensure that you receive the most current and applicable legal guidance.
Defense Strategies in Federal White-Collar Criminal Cases
When facing such allegations, a comprehensive and adaptive defense strategy is paramount. Our defense strategy options generally fall within the following categories:
Challenging the Prosecution’s Case: Disputing the sufficiency of evidence to prove the required elements of the crime.
Intent Disputes: Arguing that the defendant lacked the intent to commit the alleged criminal acts.
Procedural Defenses: Identifying flaws in the investigative process or prosecutorial missteps that could invalidate the evidence.
Negotiations and Plea Deals: Working towards an agreement that could result in reduced charges or other favorable terms.
Presentation of Exculpatory Evidence: Introducing evidence that contradicts the allegations or supports the defendant's innocence.
Expert Witnesses and Forensic Accounting: Utilizing specialists to unravel complex financial data and testify about the legitimate nature of transactions.
Adaptability to Law Changes: Updating defense tactics in response to new legal precedents and legislation.
Each of these strategies is built on the foundational legal principle that you are presumed innocent until proven guilty. Engaging with our law firm ensures that you are advised on the most current and effective defense tactics tailored to your case. If you are facing federal white-collar criminal charges, it is crucial to consult with an experienced criminal defense attorney who can assess your case, develop a strong defense strategy, and protect your rights. Contact us for a confidential consultation and personalized legal guidance.