Defending Against Federal White Collar Crime Charges: What You Need to Know
Federal white-collar crimes are serious offenses that often involve complex financial transactions, deception, and fraud. These crimes are typically non-violent but can lead to devastating consequences, including lengthy prison sentences, steep fines, and restitution. Common federal white-collar crimes include wire fraud, securities fraud, embezzlement, and insider trading. If you or someone you know is facing federal white-collar crime charges, understanding the nature of these offenses and the available defense strategies is crucial.
What Are Federal White Collar Crimes?
Federal white-collar crimes involve deceit, fraud, or a breach of trust in financial transactions, typically affecting businesses, individuals, or the government. While white-collar crimes can be prosecuted at both the state and federal level, they often fall under federal jurisdiction due to the scope of the crime or the involvement of interstate or international transactions. Federal authorities, such as the FBI, SEC (Securities and Exchange Commission), and the IRS, often lead the investigations.
Common Types of Federal White Collar Crimes
Wire Fraud
Wire fraud is one of the most frequently prosecuted federal white-collar crimes. It involves using electronic communications, such as phone calls, emails, or the internet, to defraud someone of money or property. Because wire fraud often involves interstate communications, it becomes a federal crime under 18 U.S.C. § 1343.
- Example: In Los Angeles, a case involved a fraudulent investment scheme where the defendant used emails and phone calls to solicit funds from investors, falsely promising high returns. The defendant was charged with multiple counts of wire fraud for defrauding investors out of millions of dollars.
Securities Fraud
Securities fraud involves deceptive practices in the stock market or other securities exchanges. This can include misleading investors, insider trading, or falsifying financial reports. The SEC and the Department of Justice (DOJ)aggressively pursue securities fraud cases to protect market integrity.
- Example: A high-profile securities fraud case in Los Angeles involved a hedge fund manager who falsified performance reports to lure investors. The case led to multiple federal charges of securities fraud and wire fraud, resulting in a lengthy prison sentence and massive financial penalties.
Embezzlement
Embezzlement is the theft or misappropriation of funds or property by someone entrusted with them, such as an employee or corporate officer. When embezzlement involves federal funds or affects interstate commerce, it becomes a federal crime.
- Example: A Los Angeles accountant was charged with embezzling funds from a nonprofit organization that received federal grants. The case was prosecuted at the federal level because the funds were intended for federally sponsored projects, leading to charges of embezzlement under 18 U.S.C. § 666.
Insider Trading
Insider trading occurs when someone with access to confidential, non-public information about a company uses that information to make profitable stock trades. Federal law prohibits this under the Securities Exchange Act of 1934, and it’s a crime frequently prosecuted by the SEC and DOJ.
- Example: In a notable Los Angeles case, an executive at a tech company was charged with insider trading for using non-public information about an upcoming acquisition to make millions in illegal profits. The executive faced both securities fraud and insider trading charges at the federal level.
Penalties for Federal White Collar Crimes
The penalties for federal white-collar crimes can be severe, especially when large amounts of money are involved. Common penalties include:
- Prison Sentences: Many federal white-collar crimes carry lengthy prison sentences, ranging from 5 years to 20 years or more, depending on the amount of money involved and the defendant’s role in the crime.
- Fines and Restitution: Defendants may be ordered to pay substantial fines and restitution to victims. In high-profile cases, fines can reach millions of dollars.
- Forfeiture of Assets: Federal courts often order the forfeiture of any illegally obtained assets, including money, property, and investments.
Defense Strategies for Federal White Collar Crime Charges
If you’re facing charges for a federal white-collar crime, it’s essential to mount a strong defense. Here are several common defense strategies used in federal white-collar crime cases:
Lack of Intent
Many federal white-collar crimes, such as wire fraud and securities fraud, require proof of criminal intent. If the prosecution cannot prove that you knowingly and intentionally committed fraud or deceit, your charges could be reduced or dismissed. For instance, if you can demonstrate that you made a legitimate mistake rather than intentionally misleading investors, it can weaken the prosecution’s case.
Insufficient Evidence
Federal white-collar crime cases often rely heavily on paper trails, such as financial records, emails, and phone logs. A skilled defense attorney can scrutinize the prosecution’s evidence for errors, inconsistencies, or gaps. If the evidence was improperly obtained (for example, through an illegal search), your attorney can move to suppress it.
Entrapment
If federal agents or undercover investigators pressured you into committing a crime that you would not have otherwise committed, you may be able to argue entrapment as a defense. This strategy is used when the defendant can show that law enforcement induced them to commit the crime, and they had no prior intent to engage in criminal behavior.
Good Faith Defense
In cases of securities fraud or wire fraud, the good faith defense can be powerful. This defense argues that the defendant believed they were acting within the law and had no intent to defraud anyone. For example, if you provided information to investors based on financial forecasts that turned out to be inaccurate but were made in good faith, this defense could protect you from a conviction.
Why You Need an Experienced Federal White Collar Crime Defense Attorney
Federal white-collar crime cases are complex and require a deep understanding of federal laws and procedures. If you are under investigation or have been charged with a federal white-collar crime, it’s critical to work with an experienced federal criminal defense attorney. A knowledgeable attorney can:
- Challenge the Prosecution’s Evidence: Your attorney will carefully examine the government’s case for weaknesses and work to have evidence suppressed if it was obtained illegally.
- Negotiate with Prosecutors: In some cases, your attorney may be able to negotiate a plea deal that reduces your charges or penalties, especially if you cooperate with investigators.
- Build a Strong Defense: A skilled attorney will develop a comprehensive defense strategy, whether it’s arguing lack of intent, good faith, or entrapment, to help you avoid conviction or reduce penalties.
Charged with a Federal White Collar Crime? Contact a Federal Defense Attorney Today
If you’re facing charges for a federal white-collar crime, such as wire fraud, securities fraud, embezzlement, or insider trading, you need skilled legal representation to protect your rights. At The Law Offices of Arash Hashemi, we have over 20 years of experience handling complex federal cases and can help you build a strong defense. We’ll scrutinize the evidence, challenge the prosecution’s case, and work tirelessly to secure the best possible outcome.
To discuss your case and understand your legal options, contact our office at (310) 448-1529. You can also schedule a 15-minute consultation by using our secure online scheduling system. During the consultation, we’ll review your case and outline defense strategies tailored to your situation.
Schedule a Consultation:
- Phone: (310) 448-1529
- Email: Contact@hashemilaw.com
- Address: 11845 W Olympic Blvd #520, Los Angeles, CA 90064
- Office Hours: Monday to Friday, 8:30 AM – 5:00 PM, with flexible scheduling options available, including weekend appointments.
We are conveniently located in the Westside Towers in Los Angeles, serving clients throughout Santa Monica, Beverly Hills, and Westwood. Contact us today to protect your future.
