White Collar Crime Laws

White collar crimes are usually non-violent offenses. Their perpetrators are often seeking financial gain or advantage. This may make them seem less serious than some crimes, but they still may carry heavy penalties. Some of these charges tend to fall within federal as well as state statutes, increasing the risk of a long prison term and a substantial fine. If you find out that you are suspected of a white collar crime, you should refrain from discussing your situation with law enforcement. Even if the police or prosecutors seem friendly, and even if you feel sure that you are innocent, statements that you make during these interactions could come back to haunt you later. These complex cases are best navigated with the assistance of an experienced attorney.

Below are some common types of white collar crimes, as well as potential defenses and penalties.

Extortion

Extortion usually involves getting (or trying to get) something of value through a threat. In some states, extortion also occurs when a person threatens someone else to make them take or refrain from an action. Threats may extend beyond harming the target or their property. Extortion statutes often include blackmail, which consists of a threat to the target's reputation. This might involve revealing a secret about them or accusing them of a crime.

A defendant might fight an extortion charge by arguing that they did not make a threat. Their accuser might have fabricated the story or misunderstood an interaction. Or the defendant may not have had the required intent. If they made a threat without intending to get something or induce the other person to do something, this would not be considered extortion.

Bribery

Bribery may occur when someone offers or gives something of value to a person with authority or influence while intending a “quid pro quo” in which that person does something in exchange. A person who takes or asks for a bribe also may face this charge. People generally associate bribery with interactions with government officials, but it may involve other situations as well. For example, some laws prohibit "commercial bribery" of employees in the private sector.

Strategies for fighting a bribery charge might include arguing that the alleged “bribe” was merely a gift without an agreement to receive anything in exchange. These cases also may arise from false accusations. Or law enforcement might have “entrapped” (induced) the defendant into committing bribery when they would not have been predisposed to engage in this conduct on their own.

Forgery

A prosecutor charging forgery often needs to show that the defendant faked or falsified a written instrument that has legal significance. A defendant also might face this charge, or a related charge, if they used or possessed this type of instrument. The prosecutor must show that the defendant intended to defraud someone else, although they do not need to show that anyone actually suffered a financial loss.

A defendant often challenges the intent element of a forgery charge. Sometimes they might argue that they genuinely believed that they had consent or approval to alter the instrument. Less often, they might raise the defense of duress, which means that the defendant was forced to fake or falsify an instrument by an imminent threat of serious harm.

Perjury

Most people think of perjury as lying under oath in a courtroom or a similar setting, but it can occur in other situations as well. People may sign certain documents “under penalties of perjury,” and false statements on these documents also may result in perjury charges. In addition to showing that the statement was false, the prosecutor must prove that the defendant knew that it was false. They also often need to show that the statement was “material,” or that it was relevant to an issue being decided.

Defenses to perjury thus might include arguing that the statement was not material or that the defendant made an honest mistake, not knowing that they said something incorrect. In limited situations, a defendant might be able to avoid a perjury conviction by “recanting” (correcting) the false statement. This may need to occur in the same proceeding as the original statement.

Fraud

Often a basis for a civil lawsuit, fraud also may give rise to criminal charges. In broad terms, this involves trying to get something of value through a falsehood or misrepresentation. Fraud may occur in many settings, including:

• Credit card fraud: using someone else’s credit card information without their consent, or using a fake or revoked card
• Insurance fraud: false statements on an application for a policy or a claim for benefits
• Securities fraud: various forms of deceit or manipulation involving investments like stocks or bonds
• Tax fraud: willful false statements or omissions in information provided to tax authorities
• Welfare fraud: providing false information to a government agency in an effort to get public benefits

A defendant facing a fraud charge might argue that they did not intend to defraud. For example, perhaps they made an innocent mistake on an application for government benefits or an insurance policy. Or they might claim that the allegedly false statement was true. Further defenses might include entrapment or duress (described above), as well as procedural errors by law enforcement.

Money Laundering

Federal prosecutors often bring money laundering charges, but state laws prohibit this conduct as well. Money laundering generally involves transactions meant to mask the nature, source, or certain other aspects of the proceeds of illegal activity. The prosecutor usually must show that the defendant both knew that the money or other property in the transaction came from criminal activity and knew of the “laundering” purpose. Sometimes a money laundering charge also might arise if the defendant engaged in a transaction involving criminal proceeds while intending to promote further criminal activity.

Defenses to money laundering might include questioning the origin of the money or property in the transaction. The defendant also might claim that they were unaware of either its criminal source or the money laundering character of the transaction. Meanwhile, they might have a procedural defense if law enforcement seized evidence in violation of Fourth Amendment rules for searches and seizures.

Penalties for White Collar Crimes

Sentences for white collar crimes vary greatly by jurisdiction. These are often charged as felonies, but some may be charged as misdemeanors. Sometimes the amount of money or property involved in the crime affects the potential penalties. Here are some examples of prison terms for various white collar crimes under federal law:

• Perjury: up to 5 years
• Bank fraud: up to 30 years
• Securities fraud: up to 5, 20, or 25 years (depending on the statute)
• Disability insurance fraud: up to 5 years
• Tax evasion (a type of tax fraud): up to 5 years
• Money laundering: generally up to 20 years

Here are some examples of prison terms for white collar crimes under Florida law:

• Extortion: up to 15 years
• Bribery of a public servant: up to 15 years
• Forgery: up to 5 years
• Perjury: up to 5 years if it occurred in an official proceeding; otherwise up to 1 year
• Securities fraud: generally up to 5 years, but up to 30 years if the defendant obtained more than $50,000 from five or more people
• Money laundering: up to 5 years for more than $300 but less than $20,000 in 12 months; up to 15 years for at least $20,000 but less than $100,000 in 12 months; up to 30 years for at least $100,000 in 12 months

Here are some examples of prison terms for white collar crimes under California law:

• Extortion: 2, 3, or 4 years
• Commercial bribery: generally up to 1 year; 16 months or 2 or 3 years for a bribe greater than $1,000
• Perjury: 2, 3, or 4 years
• Credit card fraud: generally up to 6 months; up to 1 year, or 16 months or 2 or 3 years, if more than $950 obtained in 6 months
• Welfare fraud: generally up to 6 months; up to 1 year, or 16 months or 2 or 3 years, for benefits worth more than $950
• Money laundering: generally up to 1 year, or 16 months or 2 or 3 years; imprisonment may be extended by 1-4 years if more than $50,000 was involved

A defendant also may face heavy fines. For fraud offenses, they may need to pay restitution to the person, business, or government agency that they defrauded.

Last reviewed October 2024