White Collar Crime Defense Strategies: How to Fight Fraud, Embezzlement, and More
If you’ve been accused of fraud, embezzlement, or another white collar crime, you’re not just facing an arrest. In many cases, prosecutors have been investigating quietly for months — sometimes years — before you even know you’re a target. By the time charges are filed, the government often believes its case is airtight. That’s why the defense strategy you put forward at the very beginning can be the single most important factor in the outcome.
At The Law Offices of Arash Hashemi, we have more than 20 years of experience representing clients in both California and federal courts against allegations of financial crimes. Many of these cases involve fraud or embezzlement — two of the most common white collar charges. But whether the accusation involves financial mismanagement, insider trading, or securities fraud, the earlier you act, the better your chances of securing a dismissal, reducing charges, or avoiding prison altogether.
What Are the Best Defense Strategies for White Collar Crimes?
The right defense depends on the specific facts of your case — the financial records, digital communications, witness testimony, and other evidence the government relies on. But there are recurring strategies that often make the difference in white collar cases.
Prosecutors must prove intent, and investigators must follow the law in how they gather evidence. Both of those issues are explored in detail below. Other defense approaches include showing that you had no knowledge or control over the transactions in question, or exposing flaws in accounting records, expert reports, or witness credibility.
White collar prosecutions often look strong at first glance, but a closer review can reveal weaknesses. A tailored defense strategy forces prosecutors to address those weaknesses and can shift the outcome from a conviction to a dismissal or reduced charge.
Can Lack of Intent Be a Defense in White Collar Cases?
Intent is often the central issue in white collar cases. Crimes such as fraud, embezzlement, and insider trading generally require proof that the accused acted knowingly and with the intent to deceive or misappropriate funds. Without that intent, there is no crime.
In practice, many white collar cases begin with mistakes rather than deliberate misconduct. A business executive may rely on incorrect information provided by others, a professional may follow company practices that later prove to be improper, or a partner may make decisions without the defendant’s knowledge. These situations may raise questions about judgment or oversight, but they do not establish criminal intent.
When the defense can show that the accused acted in good faith or without the intent to commit a crime, the prosecution’s case becomes significantly weaker. Demonstrating the absence of intent is one of the most effective ways to prevent a conviction or even to persuade prosecutors to dismiss charges before a case goes to trial.
What If the Evidence Against You Was Obtained Illegally?
In white collar prosecutions, the government’s case often rests on documents, emails, financial records, and electronic communications. However, that evidence is only admissible if it was obtained lawfully. Investigators must comply with constitutional protections when conducting searches, seizing property, or reviewing private communications.
If law enforcement exceeded the scope of a warrant, accessed bank records without proper authorization, or used surveillance methods beyond what the law permits, the defense can move to suppress that evidence. When key documents or recordings are excluded from trial, prosecutors may be left without the proof they need to move forward.
Challenging the legality of searches and seizures is not a technicality—it is a core constitutional safeguard. Courts take these violations seriously, and entire cases have been dismissed when it was shown that investigators acted outside the bounds of the law. For anyone facing a white collar prosecution, a careful review of how evidence was collected is essential.
How Do You Fight Fraud and Embezzlement Charges in California?
Fraud and embezzlement are two of the most common white collar charges in California, and each requires the prosecution to prove specific intent. For fraud, prosecutors must show that you knowingly misrepresented facts or engaged in deception to gain a financial benefit. For embezzlement, they must prove that you were entrusted with property or funds and intentionally used them for your own purposes.
A strong defense strategy focuses on undermining these elements:
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Lack of intent to deceive – Honest mistakes in recordkeeping, accounting, or business practices are not crimes. If you relied on incorrect information, misunderstood company policies, or acted in good faith, the prosecution may not have the evidence it needs.
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Insufficient proof of control or access – In embezzlement cases, prosecutors often rely on circumstantial evidence to tie missing funds to a particular employee or manager. If multiple people had access to accounts, systems, or property, that weakens their case.
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Errors in financial records – White collar cases depend heavily on paper trails. Defense attorneys can expose inaccuracies in audits, accounting reports, or the conclusions drawn by government experts.
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Alternative explanations – Not every unusual transaction is criminal. Poor management decisions, failed investments, or miscommunication among business partners can all be mistaken for intentional fraud.
By raising these defenses early, your lawyer can challenge the government’s assumptions, limit the evidence presented at trial, and often negotiate for reduced charges or dismissal.
How Can Entrapment Play a Role in White Collar Crime Defense?
Entrapment is a defense that applies when law enforcement crosses the line from investigation into persuasion. In many white collar cases, undercover agents or confidential informants are involved in financial transactions or business deals. If they merely observe and collect evidence, their conduct is lawful. But if they pressure or persuade someone to take part in a fraudulent act they would not otherwise have committed, the defense of entrapment may be raised.
For example, if an informant repeatedly urged you to join an investment scheme and you only agreed after persistent pressure, the court may find that you were entrapped rather than acting on your own initiative. The key issue is whether you were predisposed to commit the crime. If the evidence shows you would not have participated without government inducement, the charges may not stand.
Establishing entrapment is complex, but it can be one of the strongest strategies in a white collar case. A skilled defense attorney will carefully review communications, recordings, and other evidence to determine whether investigators went too far and whether the defense can be raised effectively in court.
What Other Defenses Can Be Effective in White Collar Cases?
Even if intent isn’t at issue, or the search wasn’t unlawful, there are still defenses that can end a case outright. These include situations where the government’s proof simply doesn’t hold up, or where your role has been misunderstood.
For example, prosecutors often rely on mountains of financial records and emails, but if they can’t clearly tie those documents to you, the case may fall apart. In other situations, multiple people may have had access to the same accounts or devices, creating real doubt about who was responsible for the transactions.
Some clients are pulled into cases because of pressure or threats from others. If you acted under duress — whether from a business partner, supervisor, or someone using intimidation — that changes the legal analysis.
Finally, timing can be critical. White collar cases often take years to investigate, but prosecutors have deadlines. If they wait too long to file charges, your lawyer can move to have the case dismissed under the statute of limitations.
Speak With a Los Angeles White Collar Crime Defense Attorney
If you believe you are under investigation, have received a subpoena, or have already been charged with a white collar crime, do not wait to get legal representation. Prosecutors often build their case long before an arrest is made, and every step you take without an attorney can make your situation more difficult.
Early intervention allows a defense lawyer to challenge the government’s narrative, present evidence in your favor, and sometimes prevent charges from being filed at all. Waiting until your first court date can mean lost opportunities.
At The Law Offices of Arash Hashemi, we have over 20 years of experience defending professionals, executives, and business owners facing complex state and federal investigations. We understand what is at stake — your career, your reputation, and your freedom — and we act quickly to protect them.
The Law Offices of Arash Hashemi
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Los Angeles, CA 90064
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