It's crucial to understand that federal white-collar crimes, often committed for financial gain, are not to be taken lightly. Despite their lack of physical violence, these are serious offenses that can lead to severe penalties under federal law. These crimes, which often involve fraud, deception, and breaches of trust, can result in penalties as severe as lengthy prison sentences. This serves as a stark reminder of the importance of respecting the law, as these crimes can have a significant impact on individuals and businesses.
It's crucial to recognize that federal white-collar crimes can lead to lengthy sentences due to the potential for significant financial loss and harm. This underscores the serious nature of these crimes and the need for strict enforcement of federal laws to deter potential white-collar criminals.
Some of these federal crimes include fraud, embezzlement, money laundering, securities fraud, and insider trading. Penalties can range from 2 to 4 years for insider trading to 5 to 10 years or more for large-scale fraud or embezzlement, depending on the amount of money involved. In some cases, sentences can exceed 20 years, especially for large-scale Ponzi schemes or corporate fraud.
The term' fraud' encompasses a broad category of various forms of deception, including wire fraud, mail fraud, insurance fraud, mortgage fraud, and healthcare fraud. This broad category, along with the varying penalties associated with each type of fraud, highlights the complexity and seriousness of these crimes.
Let's discuss ten federal white-collar crimes that could result in lengthy sentences, along with the statutes that define and govern these offenses.
1. Wire Fraud (18 U.S.C. § 1343)
Wire fraud occurs when someone uses electronic communication, such as email, phone, or the Internet, to promote a fraudulent scheme. This statute casts a wide net and is often employed in cases involving complex financial schemes. Penalties can include up to 20 years in prison, with harsher sentences if the fraud involves a financial institution or federal disaster relief funds.
18 U.S. Code § 1343 - Fraud by wire, radio, or television says, "Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, transmits or causes to be transmitted by means of wire, radio, or television communication in interstate or foreign commerce, any writings, signs, signals, pictures, or sounds for the purpose of executing such scheme or artifice, shall be fined under this title or imprisoned not more than 20 years, or both."
2. Mail Fraud (18 U.S.C. § 1341)
Mail fraud involves using the postal system to advance a scheme that aims to defraud others. Even in the digital age, this charge remains a common pursuit. The statute broadly criminalizes devising schemes to defraud and using the mail services to execute or attempt to execute such schemes. Convictions can carry a sentence of up to 20 years, with increased penalties for fraud involving public institutions or disaster relief.
18 U.S. Code § 1341 - Frauds and swindles say, "Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, or to sell, dispose of, loan, exchange, alter, give away, distribute, supply, or furnish or procure for unlawful use any counterfeit or spurious coin, obligation, security, or other article, or anything represented to be or intimated or held out to be such counterfeit or spurious article, for the purpose of executing such scheme or artifice or attempting so to do, places in any post office or authorized depository for mail matter, any matter or thing whatever to be sent or delivered by the Postal Service...."
3. Securities Fraud (18 U.S.C. § 1348)
Securities fraud, often tied to insider trading or market manipulation, disrupts the integrity of the financial markets. The laws prohibit deceptive practices in connection with the purchase or sale of securities. Violations under these statutes, regulated by the SEC, can lead to sentences of up to 25 years in prison, depending on the scale and impact of the fraud.
18 U.S. Code § 1348 - Securities and commodities fraud says, "Whoever knowingly executes, or attempts to execute, a scheme or artifice (1) to defraud any person in connection with any commodity for future delivery, or any option on a commodity for future delivery, or any security of an issuer with a class of securities registered under section 12 of the Securities Exchange Act of 1934 (15 U.S.C. 78l) or that is required to file reports under section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78o(d)) shall be fined under this title, or imprisoned not more than 25 years, or both."
4. Bank Fraud (18 U.S.C. § 1344)
Bank fraud specifically targets schemes designed to defraud financial institutions, such as banks or credit unions. This broad statute criminalizes any false representation or fraudulent activity designed to obtain funds or property under the institution's control. Convictions can carry a sentence of up to 30 years in prison, reflecting the high level of scrutiny given to crimes targeting essential financial systems.
18 U.S. Code § 1344 - Bank fraud says, "Whoever knowingly executes, or attempts to execute, a scheme or artifice (1) to defraud a financial institution; or (2) to obtain any of the moneys, funds, credits, assets, securities, or other property owned by, or under the custody or control of, a financial institution, by means of false or fraudulent pretenses, representations, or promises; shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both."
5. Money Laundering (18 U.S.C. § 1956)
Money laundering involves disguising the origins of illegally obtained funds to make them appear legitimate. Section 1956 addresses the intentional act of laundering funds connected to specified unlawful activities, while Section 1957 criminalizes spending or transferring such funds in excess of $10,000. Sentences can exceed 20 years per offense, depending on the scope of the illicit financial activity.
18 U.S. Code § 1956 - Laundering of monetary instruments says, "(1) Whoever, knowing that the property involved in a financial transaction represents the proceeds of some form of unlawful activity, conducts or attempts to conduct such a financial transaction which in fact involves the proceeds of specified unlawful activity (A) (i) with the intent to promote the carrying on of specified unlawful activity; or (ii) with intent to engage in conduct constituting a violation of section 7201 or 7206 of the Internal Revenue Code of 1986; shall be sentenced...."
6. Tax Evasion (26 U.S.C. § 7201)
Tax evasion involves willful actions to evade or defeat a tax obligation, such as underreporting income or hiding assets. The statute requires proof that the individual knowingly failed to fulfill their tax liabilities. Penalties include substantial fines and up to five years in prison for each count of tax evasion, with more severe consequences for large-scale or repeated offenses.
26 U.S. Code § 7201 - Attempt to evade or defeat tax says, "Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than 5 years, or both, together with the costs of prosecution."
7. Aggravated Identity Theft
Federal identity theft involves using someone else's identity, typically in conjunction with another felony, such as fraud or immigration violations. What makes this statute particularly punishing is the mandatory minimum of 2 years, served consecutively to any other sentence. Multiple counts can quickly compound into lengthy incarceration.
18 U.S. Code § 1028A - Aggravated identity theft says, "(a) Offenses (1) In general, Whoever, during and in relation to any felony violation enumerated in subsection (c), knowingly transfers, possesses, or uses, without lawful authority, a means of identification of another person shall, in addition to the punishment provided for such felony, be sentenced to a term of imprisonment of 2 years."
8. Healthcare Fraud (18 U.S.C. § 1347)
With Medicare, Medicaid, and private insurance programs involved, healthcare fraud has grown into one of the most lucrative (and heavily prosecuted) white-collar crimes. Submitting false claims, billing for non-existent procedures, or kickback schemes can all fall under this umbrella. Convictions can result in 10 years or 20 years in prison if the fraud causes serious bodily injury. If it results in a death, a life sentence is possible.
18 U.S. Code § 1347 - Health care fraud says, "(a) Whoever knowingly and willfully executes, or attempts to execute, a scheme or artifice (1) to defraud any health care benefit program; or (2) to obtain, by means of false or fraudulent pretenses, representations, or promises, any of the money or property owned by, or under the custody or control of, any health care benefit program, in connection with the delivery of or payment for health care benefits, items, or services, shall be fined under this title or imprisoned not more than 10 years, or both. If the violation results in serious bodily injury (as defined in section 1365 of this title), such person shall be fined under this title or imprisoned not more than 20 years, or both; and if the violation results in death, such person shall be fined under this title, or imprisoned for any term of years or life, or both."
9. Bribery (18 U.S.C. § 201)
Federal bribery laws govern the exchange of something of value to influence the actions of public officials or agents of federally funded organizations. Under section 201, bribery involves federal personnel, while § 666 addresses corrupt acts related to organizations receiving significant federal funds. Offenders can face up to 15 years in prison for each violation, along with potential fines.
18 U.S. Code § 201 - Bribery of public officials and witnesses says, "Whoever (1) directly or indirectly, corruptly gives, offers or promises anything of value to any public official or person who has been selected to be a public official, or offers or promises any public official or any person who has been selected to be a public official to give anything of value to any other person or entity shall be fined under this title or imprisoned...."
10. Racketeering (RICO) - 18 U.S.C. § 1962
The Racketeer Influenced and Corrupt Organizations (RICO) Act enables the government to charge individuals or groups that engage in a pattern of criminal activity, often through a legitimate enterprise. Common charges include bribery, fraud, and embezzlement. Convictions can result in imprisonment for 20 years to life, depending on the severity and nature of the underlying crimes.
18 U.S. Code § 1962 - Prohibited activities says, "(a) It shall be unlawful for any person who has received any income derived, directly or indirectly, from a pattern of racketeering activity or through collection of an unlawful debt in which such person has participated as a principal within the meaning of section 2, title 18, United States Code...."
For more information, contact our federal criminal defense lawyers at Eisner Gorin LLP, located in Los Angeles, California.
Related Content:
If you have one phone call from jail, call us! If you are facing criminal charges,