White Collar Crime

Federal white-collar charges often hit hard and fast—FBI raids, grand jury subpoenas, asset freezes via civil forfeiture or restraining orders, and indictments that can lead to decades in federal prison, massive fines, restitution, and permanent reputational damage. These are highly complex, evidence-heavy cases involving mountains of documents, financial records, emails, and witness testimony. Federal prosecutors (from U.S. Attorneys' Offices, often with DOJ Fraud Section or specialized units) wield immense resources, including FBI, IRS Criminal Investigation (CI), SEC, HHS-OIG, and other agencies.
 

Courts must calculate the advisory guideline range (post-Booker advisory only), then impose a sentence considering 18 U.S.C. § 3553(a) factors (nature/seriousness, history/characteristics, deterrence, etc.). Variances below/above guidelines are common, especially with strong mitigation (cooperation, remorse, restitution).
 

1. Wire Fraud & Mail Fraud (18 U.S.C. §§ 1343, 1341)

These are the "Swiss Army knives" of federal white-collar prosecution—broadly applicable to almost any scheme involving deception for money/property.
 

Core Elements (identical for both; differ only in transmission method):

• Devising or intending a scheme/artifice to defraud (or obtain money/property by false pretenses/representations/promises).

• Material falsehoods or omissions.

• Intent to defraud (specific intent required).

• Use (or causing use) of mail (postal service/private carrier) or interstate/foreign wire/radio/TV communication (email, phone, internet, wire transfers, etc.) in furtherance/execution/attempt.

​

Even one use suffices; the communication need not be fraudulent itself—just advance the scheme.

​

Penalties

• Standard: Up to 20 years imprisonment per count + fine (up to $250,000 individual / $500,000 organization, or twice gain/loss per 18 U.S.C. § 3571(d)).

• Enhanced (affects financial institution OR relates to presidentially declared major disaster/emergency benefits under Stafford Act): Up to 30 years + fine up to $1,000,000.

• Restitution mandatory (full victim losses); forfeiture of proceeds/property involved.
   

2. Bank Fraud (18 U.S.C. § 1344)

Definition: Knowingly executing/attempting a scheme/artifice to:

• Defraud a federally insured financial institution, OR

• Obtain moneys/funds/credits/assets/property owned by/under custody/control of such institution by false/fraudulent pretenses/representations/promises.
   

Penalties:

• Up to 30 years imprisonment + fine up to $1,000,000 (or twice gain/loss).

• Restitution/forfeiture mandatory.

• Guidelines: §2B1.1 (base 7); same loss table + potential +2/+4 for jeopardizing financial institution solvency/safety.

• Common: Mortgage fraud, check kiting, PPP loan fraud (using false info to obtain federally backed loans), loan application misrepresentations.

 

3. Tax Evasion (26 U.S.C. § 7201)

Definition: Willful attempt to evade/assess taxes (beyond mere failure to file/pay; requires affirmative act like underreporting income, false deductions, hidden assets).
 

Penalties (per count/year):

• Up to 5 years imprisonment + fine up to $250,000 (individual) / $500,000 (corporation) + costs of prosecution.

• Civil fraud penalty: 75% of underpayment + interest.

• Guidelines: §2T1.1/§2T4.1 (tax table based on tax loss); loss drives levels similarly to fraud.

Mitigation: Voluntary disclosure via IRS Offshore Voluntary Disclosure Program or Streamlined Filing before criminal referral can avoid prosecution/reduce charges.

Common: Hiding income offshore, sham trusts, false deductions.

​

4. Money Laundering (18 U.S.C. §§ 1956, 1957)

• Broad statute often layered onto fraud/drug cases to enhance penalties.

• §1956 (Promotion/Concealment): Conducting financial transaction with proceeds of "specified unlawful activity" (e.g., fraud) to promote further crime, conceal source, avoid reporting, etc.

• §1957: Engaging in monetary transaction >$10,000 with criminally derived proceeds.
   

Penalties:

• Up to 20 years (§1956) / 10 years (§1957) + fines up to $500,000 or twice value involved.

• Forfeiture of involved property mandatory.

• Guidelines: §2S1.1; often ties to underlying offense level.

• Common: Layering funds through shells, crypto, real estate to hide fraud proceeds.
   

5. Public Corruption & Bribery (18 U.S.C. § 201)

Definition: Bribery of public officials (giving/receiving thing of value for official act); includes honest services fraud (depriving public of right to honest services).
 

Penalties:

• Up to 15 years (bribery) / 20 years (honest services fraud) + fines.

• Elected officials/public corruption: Often +2 enhancement.

• Guidelines: §2C1.1 (base varies; +levels for bribe value, multiple bribes, official position).

• Common: Kickbacks, gratuities, quid pro quo with federal officials/contractors.
   

6. Conspiracy (18 U.S.C. § 371 or § 1349)

General (§371): Agreement + overt act to defraud U.S./commit offense; max 5 years. Fraud-specific (§1349): Conspiracy to commit wire/mail fraud; same max as substantive offense (20/30 years).

Often charged to capture co-conspirators; Pinkerton liability for foreseeable acts.
 

Key Defenses & Strategies

Lack of intent: No specific intent to defraud (good-faith belief, negligence insufficient).

Materiality: False statement not material.

No use in furtherance: Communication not advancing scheme.

Statute of limitations: 5 years (generally); overt act restarts for conspiracy.

Suppression: Illegal searches/seizures (warrants, subpoenas).

Cooperation: Substantial assistance (§5K1.1) for sentence reduction.

Restitution/Remorse: Early voluntary payments mitigate.

Plea negotiations: Often to lesser counts or factual stipulations reducing loss.