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 white-collar crimes. If you are accused of such crimes, get a lawyer immediately.
While anyone can be accused of committing a white-collar crime, most 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 to commit fraud or other such crimes. White-collar crimes involving many victims, large amounts of money, or severe breaches of trust are more likely to result in more severe charges.
Get a free, confidential legal evaluation from our white-collar crimes defense lawyers by calling the Liberty Law Team at (215) 709-7431.
What is a White-Collar Crime in Philadelphia?
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.
Crimes of Fraud
White-collar crimes are very often crimes of fraud. Defendants are often accused of stealing or otherwise illegally obtaining or transferring money. In many cases, white-collar crimes occur in the workplace, and defendants are working professionals who are accused of using their positions to commit fraud.
Many white-collar crimes involve stealing from the business the defendant works for. For example, an accountant working for a large corporation might skim money from certain accounts and transfer that money to their own accounts. This is embezzlement.
In other cases, the fraud may involve stealing directly from people, often clients of the defendant.
Federal vs. State Crimes
White-collar cases are more typically 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.
Non-Violent Offenses
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 fraud scheme 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.
Types of White-Collar Crimes in Philadelphia
White-collar crimes are non-violent and committed by people in a professional or business setting. 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 is faking an injury that never happened on medical records to get a payout from health insurance.
Healthcare Fraud
Healthcare fraud involves making false claims about health care or treatment to illegally obtain financial gain. This form of fraud may be perpetrated by medical professionals who submit claims to insurance companies or patients who deceive insurance companies and their own doctors.
One of the most common examples of healthcare fraud is doctors entering the wrong coding or billing information into the system, charging insurance companies for procedures that might pay them more than the ones they performed. Often, no procedure was actually performed, and the insurance company ends up reimbursing the practice or the individual practitioner for extra money.
Patients may also be charged with healthcare fraud. Using someone else’s identity to obtain healthcare, visiting multiple doctors to obtain duplicate prescriptions, or lying to doctors to obtain prescriptions to later sell on the black market may all be charged as healthcare fraud.
Trade Secrets Theft
Stealing ideas, proprietary systems, and other information from competitors is 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 will likely want the case to end in a plea deal, as prosecutors may not want to reveal trade secrets in open court. As such, these crimes are often charged as attempting to steal trade secrets rather than the actual completed crime. If the “attempt” is not enough to qualify as a crime, the government may have nothing upon which to rest the case, and the charges may be dismissed.
The FBI and other law enforcement agencies have specialized units that crack down on these kinds of thefts, often employing undercover agents. These operations require cooperation with the companies that are the alleged victims, and they are often aggressive in trying to “win” these cases, so you should have a lawyer on your side to protect your rights.
Money Laundering
Charges may fall under RICO statutes if the company or organization was 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 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 criminal offenses.
Money laundering can involve falsifying business records and payrolls or even setting up businesses like restaurants or dry cleaners that do little to no real business and just launder money. It can also involve sophisticated financial setups, such as shell corporations, shell banks, and other setups that are hard to trace.
Embezzlement
Embezzlement involves taking funds that were entrusted to you by your employer and using them as your own. This is theft because that money belongs to a business, not you, even though it has been placed under your control.
An example of embezzlement is 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 Organizations (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 most 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 an initial investor whom they convince to put their money into a lucrative business (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 are promised a massive return on investment. Such returns are usually the investments of future victims of the scheme.
A common way Ponzi schemes are found out is when new investors stop coming in, and prior investors do not get the massive return on their investments 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 several factors, including the severity of the offense and the defendant’s criminal history. Those facing charges for white-collar crimes should contact an experienced attorney to discuss their legal options and ensure they receive professional help.
Are All White-Collar Crimes Felonies?
No, not all white-collar crimes are felonies. In fact, many white-collar crimes are misdemeanors. However, some white-collar crimes 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.
What makes a white-collar crime a felony or misdemeanor often comes down to the alleged value of the fraud. When an alleged fraud scheme involves a large sum of money, it is more likely to be charged as a felony. An often effective defense strategy is to challenge the prosecutor’s claims regarding the overall value of the alleged fraud to reduce the charges.
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.
When is a White-Collar Crime Tried in a Federal Court?
In federal court, the exposure you face depends on the value of the alleged fraud. In other words, if the government claims $10,000 in fraud loss, the guidelines will recommend a certain sentence if the defendant is found guilty; if the government claims $250,000 in fraud loss, 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, possible prison time is substantial, but our white-collar crime defense lawyers may mitigate the sentence by reviewing the sentencing guidelines, preparing a compelling defense, or avoiding prosecution altogether.
White-Collar Crimes Tried in State Courts
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 the defendant is found guilty.
Penalties for White-Collar Crimes in Philadelphia
A conviction for a white-collar crime can have serious consequences, including prison time, heavy fines, and a criminal record, which can make it difficult to find a job, rent an apartment, or get a loan. You may also be required to pay restitution, returning the stolen money or property to the victim.
If you have been charged with a white-collar crime, contact an experienced attorney who can help you navigate the legal system and protect your rights.
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 carry a maximum fine of $10,000, and you can be sent to prison for up to ten years.
Third-Degree Felonies
Felonies are much more serious than misdemeanors. They stay on your record longer, can prevent you from exercising certain rights, and carry 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 for White-Collar Crimes in Philadelphia
In most white-collar crimes, a major component in calculating sentencing guidelines is fraud loss. A sentencing matrix compares the seriousness of the offense (largely defined by fraud loss) and the defendant’s prior criminal history to determine a recommended sentencing range. If a defendant has a history of criminal convictions, they are in danger of facing a higher sentencing range.
To fully understand your potential sentencing guidelines, you should consult with your attorney, who may 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 can review the facts of your case and help you 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
Like 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 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 where defendants argue that law enforcement induced them to commit a crime they would not have otherwise committed. For this defense to succeed, 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?
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.
Understanding the Charges
First, you should make sure that you understand the charges against you and the potential penalties that you face if convicted.
When you accept a plea bargain, you must plead guilty to the charges, which prosecutors may reduce as part of the agreement. Are these charges something you can live with? If so, you may consider accepting the plea deal. If the charges are still too serious and you do not want such severe charges on your record, you may want to avoid accepting a plea deal.
Hire a Lawyer
Second, you should meet with an experienced attorney who can help you understand your rights and defenses.
Plea bargains can be confusing, and they may be the result of intense negotiations between prosecutors and defendants. An experienced defense lawyer can help you develop effective negotiation strategies and work to get you the best deal possible. If you go without a lawyer, there is a good chance that you will end up with a bad plea deal.
Weigh the Evidence
Third, you should consider whether the evidence against you is strong enough to convict you of the crime.
Plea bargains are helpful in cases where evidence is so overwhelming that a conviction is highly likely. Rather than face a guilty verdict in court followed by harsh sentencing, prosecutors may reduce the charges (which usually results in a more lenient sentence) in exchange for a guilty plea. The key here is the strength of the evidence.
If your attorney believes you have a strong defense and may successfully challenge your charges in court, it would not be wise to accept a plea deal. The plea deal may be worse than what you may achieve for yourself by taking your case to trial.
Is the Plea Deal Good Enough?
Fourth, you should consider whether the prosecutor is offering a good plea bargain.
Not every plea deal begins with the best offer. It is normal for a prosecutor to make an initial plea offer that is not as good as it could be. A good rule of thumb is never to accept the first plea offer, even if you are interested in accepting a plea deal. Your lawyer should review the offer with you and make a better counteroffer.
What Are the Consequences of a Plea Deal?
Fifth, you should consider whether you are willing to accept the consequences of pleading guilty to a crime.
The consequences involve more than just the sentence you will face after accepting the plea deal. By accepting a plea agreement, you waive your right to a trial. This significantly affects your ability to file an appeal. The appeals process revolves around legal errors committed during the trial. If there is no trial, you have very limited grounds for an appeal.
Call Our Philadelphia White-Collar Crimes Defense Attorney Today
Get a free, confidential legal evaluation from our white-collar crimes defense lawyers by calling the Liberty Law Team at (215) 709-7431.
Liberty Law Team 
