White-collar crime is a broad term used to describe a whole array of offenses. These offenses range from embezzlement and forgery to fraud and insider trading. Generally, white-collar crimes don’t involve violence, although their magnitude is nonetheless significant. Across the United States, some of the major offenses that make news headlines involve money laundering and tax evasion. Irrespective of the white-collar crime charges you face, we can provide invaluable legal counsel and representation. At the California Criminal Lawyer Group, we specialize in representing defendants in Santa Ana. We will give you a voice and ensure that your rights are protected.

White-collar crimes often involve defendants seeking financial gain that they don’t deserve. As such, if you are arrested for an offense, more than just your freedom is at stake. Even though you risk spending years in jail and paying a hefty fine, your charges may also tarnish your reputation or that of your business. The sooner you get in touch with us, the faster we can begin the process of clearing your name.

White-Collar Crime Defined

As aforementioned, white-collar crime is a blanket term. While it encompasses a wide array of offenses, these crimes are usually of a financial nature. The defendants typically occupy professional positions that make statements of prestige and power. It is also usual for those accused of the crimes to hold jobs that generate above-average annual compensation.

Edwin Sutherland, a sociologist, and criminologist came up with the term “white-collar crime” in 1930. Generally, he defined the crimes as offenses committed by persons who command great respect within the community. These are persons of high social and economic status, better known as individuals of upper-class society.

Even though white-collar crimes are non-violent, they involve engaging in illegal acts for financial gain. The perpetrators often use deceptive techniques and leverage their high job positions to access significantly high amounts of money that belong to individuals or businesses.

In the majority of cases, the perpetrators are first-time offenders who are otherwise law-abiding citizens. They are caught amid a crime either because they don’t know the activity is illegal or due to pressing financial strains that force their hand into the cookie jar. Either way, you can be charged and convicted of a white-collar crime irrespective of whether you participated in an illegal act intentionally or unknowingly.

The Main Classifications of White Collar Crimes

White-collar crimes are complex in nature. The laws subdivide these crimes into two main categories:

Individual Crimes

Individual white collar crimes are those committed by one person or a group of persons. Some of the best examples of individual white-collar crimes include Ponzi schemes, hacking, and identity theft.

Corporate Crimes

Corporate white-collar crimes are by far the most complex. They involve financially motivated crimes that happen on a corporate level. Some of the best examples of corporate white-collar crimes are money laundering schemes and insider trading schemes. More significant amounts of money are involved in this case, and an offense’s impact is often devastating.

Understanding the Main Differences Between White and Blue Collar Crimes

A bank loan officer who embezzled money from an establishment is charged with committing a white-collar crime, while a gang member who commits burglary or robbery is accused of a blue-collar crime. Hence, one of the key differences between white and blue-collar crime is that while the former doesn’t involve violence, the latter often consists of some form of physical force against the victim.

Generally, blue-collar crimes are violent offenses like sexual assault, murder, and armed robbery. Even so, there are also non-violent blue-collar crimes like illegal gambling and prostitution. It is best to note that “blue-collar” is not a legal term but a general term used mainly to create a contrast between certain illegal acts and white-collar crimes.

On the other hand, white-collar crimes don’t rely on weapons or violence. Compared to blue-collar crimes, these crimes are harder to detect. This is mainly because an illegal act may appear as part of the perpetrator’s average workday. Even though white-collar crimes are often undramatic, they have the potential to cause significant financial damage and victimize more than one person at once.

An Overview of the Common Types of White Collar Crimes

There is a long list of criminal offenses that fall under white-collar crimes. In this section, we will only list a few of these offenses, their penalties, elements, and best defenses:

Forgery — Penal Code 470

Penal Code 470 makes it a crime to falsify a signature or fraudulently change the details of a document with the intent to gain financially. Some of the elements the prosecution must prove to convict you include:

  • You signed your accuser’s name or fake name on a specific document or used their seal.
  • You did this without the authorization of your accuser
  • You had the intent to commit fraud and gain finances you didn’t deserve

Note that numerous offenses can fall under forgery. They include falsifying legal documents and falsifying a notary public acknowledgment, just to mention a few. The elements the prosecution must prove may vary slightly depending on the charges you face.

If you are accused of forgery, you may be charged with a misdemeanor or a felony, depending on the facts of a case. When you face misdemeanor charges, the penalty may include:

  • Incarceration for up to 1 year in county jail
  • When a case involves aggravating factors or the defendant has a prior criminal record, the prosecutor may consider imposing felony charges. In this case, a conviction could lead to an imprisonment of 16 months, 2, 3, or 4 years

The ideal defenses to use will again depend on the facts of a case and the type of forgery charges you face. For instance, if your employer accuses you of using the company seal illegally, your attorney could argue that you had their direct authorization. It is also possible to claim that you had no intent to make unwarranted financial gains.

Embezzlement — Penal Code 503

Penal Code 503 describes embezzlement as the act of fraudulently misappropriating funds or property that is legally entrusted to you. For instance, it could be that your employer has assigned the company’s bank account to you, and you end up using the finances for personal expenses.

For the prosecution to convict you of embezzlement, here are some of the elements they must prove beyond a shred of doubt:

  • You had a relationship of trust with your accuser
  • Your accuser entrusted you with some funds or property
  • You used your position of power over the property or funds for personal gain

Embezzlement is a wobbler offense. Whether you will face misdemeanor or felony charges may highly depend on the value of the embezzled property. Typically, when the amount involved is over $950, the offense is charged as grand theft, a felony. On the other hand, when the crime consists of an amount under $950, a defendant faces petty theft charges, a misdemeanor.

The punishment for misdemeanor embezzlement is as follows:

  • Imprisonment for up to 1 year in county jail
  • If you face felony charges, the penalty may include up to 3 years of prison time

Like most white-collar crimes, the best defenses to use when fighting embezzlement charges will be hinged on the facts of a case. Your attorney could argue that the entire case is based on a huge misunderstanding. It could be that you had enough reason to think that you were entitled to using the funds under your care. It may also be that the activities you undertook with the funds don’t qualify as embezzlement.

Extortion – Penal Code 518

Penal Code 518 gives the legal definition of the term extortion. This is an offense that involves obtaining property from another person through threats, force, or blackmail. Note that even though extortion is somewhat similar to robbery or theft, the main difference is that in this case, the threat doesn’t subject a victim to imminent physical danger.

Extortion is a felony in California. An excellent example of the offense is when a defendant asks for money and threatens to expose damaging information about their victim if they fail to yield to their demands. Moreover, when an alleged defendant demands money in exchange for “protection,” this can also be called extortion.

Extortion is one of the most complicated forms of white-collar crimes. It can happen via text, over a call, email, or other wireless communication modes. Here are some of the elements of the offense:

  • You illegally gained property or money from your accuser
  • Your accuser willingly handed over the property
  • Even though your accuser gave you the property willingly, they did so because of fear, threat, or force.
  • You used threats or fear to force your victim into handing over their property.

Like forgery, there are various types of extortion. For instance, the prosecution will charge you with fear-induced extortion if:

  • You harm your victim or their property
  • You accuse your victim of a crime
  • You threaten to disgrace your victim or disclose information that can taint their image.
  • You threaten to report your victim’s immigration status

If you face extortion charges, the penalty may include:

  • Up to 4 years imprisonment

Again, your attorney will consider the facts of your case and the type of extortion charges you are facing before deciding the best defense tactics to use. If the only evidence the prosecution can table is the account of events from the victim, then your attorney can argue that you never made any threats. It could also be that even though you exchanged words with your victim, your intention was not to make them give up their money or property.

Health Care Fraud – Penal Code 550

Under Penal Code 550, health care fraud is defined as the act of filing dishonest health care claims for financial gain you don’t deserve. This is also a white-collar crime that is a form of fraudulent health care schemes.

To be convicted, the prosecution must prove certain elements beyond a reasonable doubt. Note that you can face charges for the crime of health care fraud, whether you participate in the following acts for direct gain or to help someone else. The elements of health care fraud include:

  • You submitted a falsified claim for unmerited health care payment or benefit.
  • You willfully submitted a health care claim that you or a claimant didn’t use.
  • You intended to commit fraud.

An excellent example of healthcare fraud is when a patient claims to have purchased a wheelchair following an accident, yet they never did so. In this case, there may be multiple guilty parties. You likely have to be in cahoots with your doctor for them to falsify the claim and send it to your medical insurance company for payment.

Like embezzlement, healthcare fraud is a wobbler offense attracting felony charges when the money involved is over $950.

If you face misdemeanor charges for the offense, the penalty may include:

  • Up to 1 year jail time in county jail
  • A fine not exceeding $10,000

When healthcare fraud attracts felony charges, the punishment could be as follows:

  • Incarceration for up to 5 years
  • A maximum fine of $50,000

In this case, your attorney could claim that you did not commit fraud and the submitted documents were genuine. It could also be that you accidentally filed incorrect information, but you lacked the intent to commit fraud.

Perjury — Penal Code Section 118

Perjury is a white-collar crime defined as the act of willfully providing false information while under oath. You can be charged with perjury for giving false statements in sworn declarations and affidavits, giving false testimony during civil dispositions or in criminal court, or falsified facts on official documents such as license applications or professional certificates.

Some of the elements the prosecution must establish before convicting a defendant include:

  • You took an oath to tell the truth or made a statement under perjury penalty.
  • You passed false information and claimed it was the truth
  • The falsified information you provided was considered “material” to the issue at hand
  • You know that you made the falsified statements while under oath

It is imperative to note that you can be under oath through various methods as authorized by the law. For instance, in a courtroom, witnesses get under oath by swearing to “tell the truth, the whole truth, and nothing but the truth….”

Perjury is a felony, and if convicted, the punishment may include:

  • Up to 4 years behind bars

Perjury is considered a grave offense in California. The crime may even lead to life imprisonment or death depending on the aggravating circumstances. For instance, you give a false testimony in court that leads to the judge imposing the death penalty on a defendant. Your punishment may also include a death sentence. Additionally, this is a crime of moral turpitude and is, therefore, a removable crime. A conviction could impact your professional license or your immigration status.

Moreover, certain defenses cannot be used to fight perjury charges. For instance, your attorney cannot argue that the administration of the oath was irregular. Claiming that a defendant was not competent to give a disposition or testimony is also not a viable defense. Furthermore, an attorney cannot argue that a defendant had no idea about the “materiality” of the falsified statements.

Depending on the facts of a case, some of the viable defenses a lawyer can use is to argue that you were not under oath. In this case, you must prove that an oath was not administered or you were not under the perjury penalty. It could also be that there was no material matter, or you had no intention to lie.

The above are merely the most common white-collar crimes. Other offenses classified as white-collar crimes include:

  • Fraudulent Conveyance — Penal Code 154
  • Misappropriation of Public Funds — Penal Code 424
  • Credit Card Fraud by Retailer — Penal Code 484h
  • Counterfeiting Credit Cards— Penal Code 484i
  • False Impersonation— Penal Code 529
  • Passing Bad Checks— Penal Code 476(a)
  • Theft by False Pretenses— Penal Code 532
  • Welfare Fraud— Welfare and Institutions Code 10980
  • Telemarketing Fraud— Business and Professions Code 17511.9

Irrespective of the charges you face, a competent criminal defense attorney can provide invaluable assistance.

Best Defenses for White Collar Crimes

Again, the complex nature of white-collar crimes makes it imperative for defendants to work with skilled attorneys. Often, prosecutors do a good job gathering evidence, making it hard for those accused to get off the loop. Moreover, each case can be as different as day and night, affecting the most suitable defense strategies to use.

Here are a few common defenses your attorney may opt for:

Accident

Here’s the deal, you can be charged with a white-collar crime whether you engaged in an action intentionally or not. The prosecution simply needs to implicate your actions in the case. Even though lack of intent cannot be used as a viable defense, you are not guilty of a crime if your actions were accidental. It could be that you made an honest mistake when filing corporate taxes. That said, it is unreasonable for the courts to convict you of tax fraud.

Entrapment

Another viable defense is entrapment. This is by far the most common tactic white-collar crime attorneys use. It’s this simple; if law enforcement officers use traps to catch you red-handed, their evidence cannot be used in court if it is obtained using illegal tactics. Any criminal activity portrayed by the officers can be considered entrapment. For the strategy to work as intended, your attorney must find a clever way to prove to the court that you would not have committed the crime if it were not for the actions of the officers in question.

Misinformation

Often, white-collar crime investigations begin when someone suspects the defendant based on specific information. In this case, your lawyer can claim that the accusing party was dependent on misguided information. For instance, if you are accused of fraud and the only evidence the prosecutors can table is the word of a witness, your attorney can claim that the accusing party mistook your statements for a fraud confession.

Incapacity

We did mention that white-collar crimes are often highly intricate. That said, only a criminal mastermind can perpetrate some schemes. Unfortunately, it is not foreign for those who can commit such crimes to cover their tracks and leave a junior member exposed.

In this case, your attorney can argue that the charges against you are based on a complex setup. After all, you lack the physical or mental capacity to commit the alleged criminal actions. For instance, an accountant accused of embezzlement could claim that they lacked direct access to a company’s accounts, making it impossible for them to commit the alleged offense.

Intoxication

In just about all blue-collar crimes, voluntary intoxication is not a viable defense. However, this can be used as a defense in white-collar crimes, depending on the specific circumstances of a case. For instance, your attorney could argue that even though you signed documents authorizing the transfer of funds, you did so while intoxicated and in a place of entertainment.

Again, lack of intent is not a viable defense. The best that this defense can do is make it possible for your attorney to bargain for a lesser sentence or a reduction of your charges.

Sometimes, the evidence against the accused is overwhelming. This simply means that using any of the above defense strategies may not make much sense. In this case, your attorney can still be of great assistance. The professional can negotiate for the best plea agreement in exchange for a guilty plea. Just like using the best defense strategies, a well-negotiated plea deal can earn you a lighter sentence.

Find a Santa Ana Criminal Attorney Near Me

Facing criminal charges is always stressful and frightening. If you face white collar charges, your best chance of saving your freedom and integrity is to turn to a skilled and experienced attorney. At the California Criminal Lawyer Group, we have a team dedicated to defending persons accused of white-collar crimes. Our expertise and decades of combined experience allow us to evaluate even the most complex cases and develop the best course of action. Call us today at 714-844-4151 for a free no-commitment consultation.