Complex, Multi-State Investigations

What is a White Collar Crime?

White collar crime is non-violent misconduct where a person or entity violates a criminal statute for financial gain (to either acquire income or avoid losses). Some examples are accounting fraud, Ponzi schemes (investment fraud where existing investors are paid with funds collected from new investors rather from returns from legitimate investments), insider trading, and mortgage fraud.

Despite popular belief, not all persons convicted of white collar crimes are able to do their jail time in minimum security prisons. Furthermore, the person could have difficulty finding employment or housing, and face social stigma. Employers are reluctant to hire someone who has been found guilty of deceit or dishonesty. Convicted persons can lose their professional license or be barred from ever obtaining one. And, a non-United States citizen could face removal and other immigration issues.

Comparison To Conventional Crime

Conventional crime may involve violence or force, where the defendant's motivation has nothing to do with money. Or if their motivation is money, then the use of force is involved, like a bank robbery.

White collar crime cases are similar to conventional crime cases in that they rarely reach the stage where there is a trial, either in front of a judge or jury. Instead, the cases are either settled through pre-trial negotiations or dismissed.

But, as we will discuss below, unlike for a conventional crime, the attorney in a white collar crime case will usually get involved long before formal charges are formerly filed. This has a significant impact on the criminal process and defense of white collar criminals. The accused person may and probably should hire an attorney and resolve the case against them before any arrest is ever made.

Challenges in Defending White Collar Criminals

Investigation Occurs, Often Without the Defendant's Knowledge

When a government agency suspects white collar crime, based on a tip or suspicious activity, they do not immediately make an arrest. Instead, the agency will work with law enforcement to conduct an investigation. This investigation could include the issuance of subpoenas for wiretaps, phone records, email, and bank records.

The Defense Attorney Gets Involved Much Earlier

As described above, when a person is told they are being investigated, they are not immediately arrested. Instead, they will be informed of the nature and content of the information that will be used against them. Based on this formal notification, there is usually a negotiation between the investigating agency, prosecutor, and the party being investigated. The goal is to try and resolve the case before an arrest. The party should take care during this negotiation period, as statements made during negotiation could be used against them in a trial.

White Collar Crime Involves Different Kinds of Evidence

As with a conventional crime, there may be witnesses that have knowledge that supports the accused person's guilt or innocence. But, given that white collar crimes can involve financial accounts, stocks, and business relationships, there is potentially a mountain of paperwork that persons on both sides of the case must carefully review. In order to prove their case, the entity prosecuting the case has likely created an enormous paper trail which includes contracts, receipts, bank statements, checks, etc. Furthermore, if there has been surveillance, there may be wiretaps and e-mails that also must be reviewed. The defense attorney must sift through that information, and they are at some disadvantage as the investigating agency has already had time to review the information.

Complex, Multi-State Investigations

Given that white collar crime involves financial transactions, it is typical that the funds involved in the case have crossed state lines. This means that the defense attorney will need to be knowledgeable in the laws governing financial dealings and taxes in different states. The attorney will also need to understand court procedures in different states, and in state and federal court, depending on how the charges could be filed.

The attorney will need substantial knowledge of the industry in which the case has arisen. This could involve health care, the stock market, and the administration of social services.

The attorney must also possess certain skills such as expertise in reviewing contracts and negotiations. Therefore, rather than a single attorney, there may be a team of attorneys and experts in finance and accounting defending a potential criminal defendant.