Philadelphia White Collar Crimes Attorney

White-collar crimes are committed for a variety of reasons but often involve the desire to obtain financial gain through illegal means. Fraud, embezzlement, and insider trading are all common types of crime white-collar crimes lawyers can help with.

While anyone can be accused of committing a white-collar crime, the majority of those charged are from middle or upper-class backgrounds. This is likely because these individuals have access to more resources and knowledge that can be used in order to commit fraud or other such crimes.

If you have been accused of a white-collar crime, it is essential that you contact a skilled and experienced criminal defense attorney who can help you to build a strong defense. The lawyers at Liberty Law Team have extensive experience handling white-collar crime cases in Philadelphia and are dedicated to helping their clients obtain the best possible outcome in their cases.

No matter what type of white-collar crime you have been accused of, Liberty Law Team will work tirelessly to ensure that your rights are protected throughout the entirety of government investigations. Contact our office today at (215) 732-3474 to schedule a free consultation with our experienced white-collar crime attorney, Lonny Fish. We will review your case and help you to understand all of your legal options so that you can make an informed decision about how to proceed.

What are Considered “White-Collar” Crimes?

The term “white-collar crimes” can cover a broad range of topics from insurance fraud to securities fraud to embezzlement and theft to the notorious Ponzi scheme. Since the types of cases involved vary so widely, the possible penalties also vary widely.

It is more typical to see white-collar cases prosecuted in federal court, although they are sometimes prosecuted in state court. The cases are more likely to be prosecuted in federal court when they involve large amounts of money, and they almost exclusively proceed in federal court if they involve anything related to the stock market, investments, or corporate malfeasance.

White-collar crimes sometimes have a reputation of being “less serious” or “less dangerous” than other crimes because they may not be as brazenly violent as something like murder or robbery. However, the reality is that white-collar crimes can be just as devastating as more obvious offenses. For example, a scheme of fraud could deplete someone’s income and life savings, leaving them destitute. Moreover, some white-collar crimes are enabled by violent criminal acts, so the reality is that a white-collar crime accusation is something to take very seriously. Modern prosecution reflects this, and white-collar crimes are beginning to be treated with the seriousness they often require.

What are Common White-Collar Crimes?

White-collar crime is a non-violent crime that is committed by people in a professional or business setting. Many times, these crimes are prosecuted under federal law and can carry severe penalties including imprisonment and heavy fines. The federal bureau that investigates these types of crimes is the FBI. These crimes are often classified as non-violent because they are not associated with a physical act, but rather involve the use of deception or manipulation in order to gain something of value.

There are a wide variety of white-collar crimes, but some of the most common include:

Embezzlement

Embezzlement is the act of unlawfully taking money or property that has been entrusted to you. This can occur in a variety of contexts, such as when an employee steals from their employer or when someone misappropriates funds from a business they are involved in.

Fraud

Fraud is a type of white-collar crime that occurs when someone intentionally deceives another person to obtain something of value. There are many different types of fraud, including insurance fraud, securities fraud, healthcare fraud, tax fraud, wire fraud, and bank fraud.

Insurance Fraud

The crime of insurance fraud is detailed in Pa. 18 Pa.C.S. § 4117. The crime consists of knowingly giving false documents or information to another party with the intent of deceiving them into doing something they otherwise would not do. In essence, the perpetrator is deceiving someone for their own financial benefit.

A common and well-known example of insurance fraud is staging an accident to obtain the insurance money. For example, burning down a house to claim the homeowner’s insurance payout would be insurance fraud in Pennsylvania. Another example of insurance fraud would be faking an injury that never happened on medical records in order to get a payout from health insurance.

Healthcare Fraud

Separate from the insurance fraud discussed above – which concentrates more on property and business insurance – there are often charges filed against doctors, nurses, and other healthcare professionals who have made mistakes in accounting for health insurance claims and payments.

One of the most common ways this is charged is when doctors enter the wrong coding or billing information into the system, charging insurance companies for procedures that might pay them more than the ones they actually performed. Often, there is no procedure that was actually performed, and the insurance company ends up reimbursing the practice or the individual practitioner for extra money.

These kinds of practices might not ultimately charge any individual patient more for their medical care, making the only victim the insurance company. When individuals are harmed by doctors and health clinics taking advantage of them, prosecutors are often more aggressive; however, charges involving harm to an insurance company alone might result in the potential for a plea deal.

Trade Secrets Theft

Stealing ideas, proprietary systems, and other information from competitors is often quite a serious white-collar crime. Many times, these crimes are committed by people from other countries trying to get an advantage over U.S. companies and competitors.

If you were charged with trade secrets crimes, the government is often going to want to get the case to end in a plea deal, as they may be unable to reveal the trade secrets in open court as part of the accusations against you. As such, these crimes are often charged as attempting to steal trade secrets rather than the actual completed crime. In some cases, the “attempt” is not actually enough to qualify as a crime, and the government will have nothing upon which to rest the case, allowing the charges to be dismissed.

The FBI and other law enforcement offices have specialized units that crack down on these kinds of thefts, often devoting agents and officers to undercover work and controlled buys to try to prove the attempted theft. These operations also require intensive cooperation with the companies that are the alleged victims. Because of the expense and time it takes both these companies and these law enforcement agencies, they are often quite aggressive in trying to “win” these cases against defendants, so you should have a lawyer on your side to protect your rights.

Money Laundering

Money laundering crimes might fall under RICO issues if the company or organization was being operated as an illegal enterprise for the primary purpose of money laundering. Money laundering charges can also be applied to a lone actor or small group of actors.

Money laundering often involves setting up dummy corporations or small businesses in order to take cash or funds from other criminal enterprises and obfuscate the source of the funds, allowing the money to be handed out to people and organizations without linking it back to crimes. This kind of crime can involve falsifying business records and payrolls or even setting up businesses like restaurants or dry cleaners that, in reality, do little to no real business and just launder money.

Money laundering can also involve sophisticated financial setups, such as shell corporations, shell banks, and other setups that are hard to trace. This can make it hard for the government to provide evidence if your case makes it all the way to trial, allowing our lawyers to potentially use this complexity to help fight the prosecution’s case.

Embezzlement

Embezzlement is taking funds that were entrusted to you by your employer and using them as your own. This is a form of stealing because that money belongs to a business, not you, even though it has been placed in your control. An example of embezzlement would be a company executive taking funds out of the marketing budget to pay for a new swimming pool at their house. However, embezzlement need not be on a large scale. It would also be embezzlement for a cashier to take money out of the register to spend on things for themselves

RICO Charges

Racketeer Influenced and Corrupt Organization (RICO) charges are filed against groups of people who committed a crime together. Traditionally, these “racketeering” charges were used to go after mob organizations that would run drugs and commit gambling and prostitution offenses, creating an organization that had the core purpose of crime.

In the modern sense, RICO laws are sometimes used to go after business organizations that commit crimes to keep the business running. This kind of corporate crime could involve willing and unknowing participants alike, and many people could be charged at once with the hope that a majority of them will “flip” and cooperate with the prosecution against the leaders of the scheme.

Tax Evasion

Tax evasion occurs when someone unlawfully attempts to avoid paying taxes. This can be done in a variety of ways, such as by hiding income or assets, making false statements on tax returns, or failing to file a tax return altogether.

Avoiding Transaction Reporting Requirements

Many transactions – such as large cash transactions or transactions to overseas accounts – require reporting to the government. This is required because the government wants to know where money is going in case it becomes income somewhere along the way.

Taxpayers, investors, and others with large sums of money might try to move the money in such a way that it cannot be reported, such as by moving it through shell corporations. Alternatively, when there is a reporting threshold, people might try to make multiple transactions in smaller amounts to avoid reaching that threshold in a practice known as “smurfing.” These practices can all result in criminal charges.

Ponzi Schemes

A “Ponzi scheme” is a fraudulent operation where someone uses other people’s money to convince prospective investors to buy into a product or company that does not actually exist. The name comes from a con artist named Charles Ponzi who is credited with coming up with the idea.

Essentially, the perpetrator needs to find an initial investor who they convince is putting their money into a lucrative business opportunity (which does not exist). The schemer then uses the money “invested” to demonstrate to future investors that their “business venture” is incredibly profitable. Usually, prospective investors/marks are promised a massive return on investment. Such returns are usually the investments of future victims of the scheme.

In theory, a Ponzi scheme could run indefinitely, so long as new investors give the conman money to distribute to people expecting a return on their fake investment. A common way that Ponzi schemes are found out is that new investors start coming in, and prior investors figure out that they were deceived when the conman cannot come up with the massive return on investment they were promised.

Insider Trading

Insider trading occurs when someone uses nonpublic information to make investment decisions. This is illegal because it gives the person an unfair advantage over other investors who do not have access to this information.

The specific sentence that is imposed will depend on a number of factors, including the severity of the offense and the defendant’s criminal history. Those who are facing charges for white-collar crimes should contact an experienced attorney to discuss their legal options and to ensure that they receive professional and experienced help.

Are All White-Collar Crimes Felonies?

No, not all white-collar crimes are felonies. In fact, many white-collar crimes are misdemeanors. However, there are some white-collar crimes that are felonies, such as embezzlement, money laundering, and fraud because they involve large sums of money. If you are charged with a felony white-collar crime, you will need a lawyer who has experience handling these types of cases.

The main difference between a misdemeanor and a felony is the potential punishment if you are convicted. Misdemeanors are typically punishable by up to one year in jail, while felonies are punishable by more than one year in prison.

Federal vs. State Charges for White-Collar Crimes

In federal court, the exposure you face tends to depend on the amount of the loss alleged as a result of the fraud. In other words, if the government claims $10,000 in fraud loss, then the guidelines will recommend a certain sentence should the defendant be found guilty, and if the government claims $250,000 in fraud loss then the guidelines will recommend a higher sentence.

A large scale fraud, such as the one perpetrated by Bernie Madoff, can result in what is effectively a life sentence. Often the exposure, or possible prison time, is a substantial number of years, but a seasoned lawyer can accomplish a more mitigated sentence by an in-depth review of the sentencing guidelines and preparation of a compelling case for mitigation, or avoid prosecution altogether.

In state court, exposure will typically vary with the charge that is brought against the defendant and will also depend, to some degree, on the amount of loss alleged.

State prosecutors can also bring a RICO charge if they think the defendant is running a corrupt organization, which can result in substantially higher penalties if they are found guilty.

Consequences of a White-Collar Criminal Conviction

A conviction for a white-collar crime can have serious consequences, including prison time, heavy fines, and a criminal record. A criminal record can make it difficult to find a job, rent an apartment, or get a loan. You may also be required to complete restitution, which is the process of returning the stolen money or property to the victim.

If you or someone you know has been charged with a white-collar crime, it is important to contact an experienced attorney who can help you navigate the legal system and protect your rights. Philadelphia white-collar crimes lawyer Lonny Fish will review your case and help you to understand all of your legal options so that you can make an informed decision about how to proceed.

White-collar crimes can have serious penalties attached in Pennsylvania. We will go into some of those penalties below.

Summary Offense

Less serious white-collar crimes will have less serious penalties attached. Summary offenses in Pennsylvania can be punished with fines of up to $250 and up to 90 days in jail. This could potentially be the penalty for stealing money from a cash register at a store where you work.

Third-Degree Misdemeanors

Fines for third-degree misdemeanors in Pennsylvania cannot exceed $5,000, and you cannot be in jail for more than 90 days.

Second-Degree Misdemeanors

Fines for second-degree misdemeanors are still capped at $5,000, but you can be sent to prison for up to two years upon conviction.

First Degree Misdemeanors

First-degree misdemeanors in Pennsylvania have the amount you can be fined raised to a maximum of $10,000 and you can be sent to prison for ten years maximum.

Third Degree Felonies

Felonies are much more serious than misdemeanors. They will stay on your record for longer, prevent you from exercising certain rights, and have much harsher criminal penalties. White-collar crimes that are third-degree felonies carry penalties of up to $15,000 in fines and prison sentences of up to seven years.

Second Degree Felonies

Second-degree felonies are a step more serious. They carry with them criminal penalties of up to $25,000 in fines and ten-year prison sentences.

Sentencing Guidelines for White-Collar Crimes in Philadelphia

In most white-collar crimes, a major component in calculating sentencing guidelines is fraud loss. A table is used which compares the seriousness of the offense (in fraud cases, largely defined by fraud loss) and the prior criminal history of the defendant to yield a recommended sentencing range. If a defendant has a history of criminal convictions, he is in danger of falling into a category which recommends a higher standard range sentence. Besides fraud loss, sometimes the government will seek other enhancements.

To fully understand your potential sentencing guidelines, it is best for you to consult with your attorney who will usually start by evaluating the government’s plea offer to see which enhancements they seek and what they claim for the fraud loss. Remember, you do not have to accept the government’s plea offer. You and your attorney should carefully analyze whether the fraud loss is accurately reflected and whether any enhancements should apply.

Are White-Collar Crimes Easily Defensible with the Help of a Lawyer?

Each white-collar crime has unique elements and defenses. In some cases, the facts of the case may be in dispute, which can make the case more difficult to defend. An experienced attorney will be able to review the facts of your case and help you to develop the best defenses possible. Additionally, an attorney can help to negotiate a plea deal with the prosecutor, which can result in a more lenient sentence. Many defenses for these crimes include:

Lack of Intent

To be convicted of a white-collar crime, the prosecutor must prove that you had the intent to commit the crime. This can be difficult to do in cases where there is no violence or clear victim.

Good Faith Belief

In some cases, you may have a defense if you can show that you had a good faith belief that you were not committing a crime. For example, if you were charged with embezzlement, but believed that you were entitled to the money that you took, you may have a valid defense.

Mistake of Fact

Similar to the defense of good faith belief, a mistake of fact defense can be used if you can show that you reasonably believed that your actions were not criminal. For example, if you were charged with tax evasion, but you had a good faith belief that you were not required to pay taxes on the money you earned, you may have a valid defense.

Duress or Necessity

In some cases, you may be able to claim that you committed the crime because you were under duress or necessity. This means that you committed the crime because you were threatened with violence or death, or because you needed to commit the crime to prevent greater harm.

Entrapment

Entrapment is a defense that can be used if you can show that you were induced by law enforcement to commit a crime that you would not have otherwise committed. For this defense to be successful, you must show that you were not predisposed to commit the crime and that the government officials engaged in conduct that would cause a reasonable person to commit the crime.

If you have been charged with a white-collar crime, it is important to speak with an experienced attorney who can help you to understand your rights and defenses. Contact us today for a free consultation.

Should I Accept a Plea Bargain for My White-Collar Criminal Charges?

If you have been charged with a white-collar crime, you may be wondering if you should accept a plea bargain. A plea bargain is an agreement between the prosecutor and the defendant in which the defendant agrees to plead guilty to a lesser charge in exchange for a lighter sentence.

There are many factors that you should consider before accepting a plea bargain. First, you should make sure that you understand the charges against you and the potential penalties that you face if convicted. Second, you should meet with an experienced attorney who can help you to understand your rights and defenses. Third, you should consider whether or not the evidence against you is strong enough to convict you of the crime. Fourth, you should consider whether or not the prosecutor is likely to offer a plea bargain. Fifth, you should consider whether or not you are willing to accept the consequences of pleading guilty to a crime.

If you have been charged with a white-collar crime, it is important to speak with an experienced attorney who can help you to understand your rights and options. The Liberty Law Team has the experience and counsel needed to make the best decision available to you. Contact us today for a free consultation at (215) 732 -3474.