Everything You Need To Know About White-Collar Crime In Arizona

Learn what white-collar crime is and how it is prosecuted.

Federal Bureau of Investigation (FBI) studies show that white-collar crime is estimated to cost the United States more than $300 billion annually. Victims of white-collar crime are individuals, families, companies, and public investors who have lost their life savings, business, or home to a group or individual operating a fraud scheme. You should know the facts about White-Collar Crimes.

White-collar crime is not a violent crime and the primary motive is typically financial. White-collar criminals often occupy a professional position of power and prestige.

White-collar Crime Types

White-collar crime covers a wide range of offenses that an individual could commit, including:

1. Fraud

Fraud encompasses several different schemes such as bank fraud, mail fraud, wire fraud, healthcare fraud, and tax fraud used to defraud people, companies, or the government of their money.

2. Identity theft and other cybercrimes

Identity theft and computer system “hacking” are two of the most widespread computer crimes. Both involve using the identifying information of an individual or company without their authorization to defraud them.  

3. Embezzlement

Embezzlement is a crime of theft or robbery that can range from an employee taking a few dollars out of a cash drawer or a small piece of property to an elaborate scheme to transfer millions from a company’s accounts or large parcels of property to the embezzler’s accounts.  

4. Counterfeiting

Using computers and advanced laser printers, a counterfeiter “copies” our currency and passes it off through retailers as real money. 

Do federal or state authorities prosecute white-collar crimes?

Many white-collar crimes are violations of federal law because they cross state lines; however, if a white-collar crime occurred only within one state’s borders, state authorities could prosecute it.

The Cost of a Conviction

A person convicted for a white-collar crime can experience severe legal, personal, and professional consequences. In addition to criminal and civil penalties, a person convicted of a white-collar crime may have difficulty finding employment, loss of or prevention from obtaining a professional license, loss of assets, and physical possessions. Further, if a non-United States citizen is convicted of a crime, they may face removal and other immigration issues. 

White-Collar Crime Penalties

Federal sentencing is based on four things:

(1) The nature of the crime
(2) The number of victims involved
(3) The actual and anticipated dollar loss
(4) The defendant’s criminal history

FRAUD Bank Fraud Federal:

The penalties provided by 18 USC 1344 for bank fraud consist of:

• The fine should not exceed $1,000,000.
• The imprisonment should not exceed 30 years.

Securities Fraud Federal

The penalties provided by 18 USC 1348 for securities fraud consist of:

• Imprisonment of five years for each instance of securities fraud
• Payment of a
• Restitution of the amount defrauded.

Mail Fraud Federal:

The penalties stated in 18 USC 1341 for mail fraud consist of either a fine or a prison term:

• A prison term of not over twenty years.
• Fines of not over $250,000 or not over $500,000 for an organization.
• If a financial institution is the victim, the prison termis not more than 30 years.

Wire Fraud

The penalties provided by 18 USC 1343 for wire fraud consist of:

• A prison sentence up to twenty years with a monetary fine up to $250,000.
• If an organization commits the crime, the fine is increased to not more than $500,000 with an imprisonment term.
• If a financial institution is the victimor one committed related to a natural disaster, the fine involved is not more than $1 million and imprisonment of not more than 30 years.

Healthcare Fraud Federal

The penalties provided by 18 USC 1347 for healthcare fraud consist of:

• Fine
• Imprisonment of not more than ten years.
• A fine with a prison sentence
• If bodily injury is involved, the penalty is a prison term of not more than twenty years.
• If death results from crime, the prison term will be a life sentence.

Tax Fraud Federal

The penalties provided by 18 USC 7201 for healthcare fraud consist of:

• Imprisonment not to exceed five years
• Payment of a fine not ver$250,000 for an individual offender and not more than $500,000 for corporations
• The imposition of both imprisonment an payment of a fine with the cost of prosecution.

State

As stated in ARS §13.2310, penalties for fraudulent schemes consist of:

• A first-offense can result in a class 2 felony, leading to a prison sentence of 3 to 12.5 years.
• If the individual has one prior conviction, the sentence increases to 4.5 and 23 years.
• If the individual has more than one prior conviction, the prison term increases to10.5 to 35 years.
• If the amount of benefit received is valued at $100,000 or more, probation is not an option, and the prison term must be served.

IDENTITY THEFT

Federal

The penalties provided by 18 USC 1028 for identity theft consist of:

• A prison term of not over fifteen years for the act of producing or transferring I.D. documents.
• A prison termt of not over thirty years if the commission is used to facilitate domestic or international terrorism
• Both imprisonment and a fine

State

As stated in ARS §13.2008, penalties for identity theft consist of:

• A class 4 felony conviction in Arizona
• A prison sentence between 1.5 and 12 years in jail
• Fines up to $150,000.
• If five or more persons have been harmed harmed, or the loss totals $3,000 or more, the crime will be reclassified as “aggravated identity theft” and become a class 3 felony.

EMBEZZLEMENT

Federal

The penalties provided by 18 USC 641 for embezzlement consist of:

• Payment of a fine
• Imprisonment
• Restitution of the embezzled fund

State

As stated in ARS §13-1802, penalties for embezzlement consist of: If a person embezzles less than $1,000 or more, they are guilty of:

• Class 1 misdemeanor
• A maximum sentence of 6 months, three years probation
• A Maximum fine of $2500 plus surcharges

If a person embezzles $4,000 or more, but less than $25,000, they are guilty of:

• Class 3 felony
• A sentence of 2.5 years to 8.75 years
• A Minimum fine of $1000 plus surcharges

If a person embezzles $25,000 or more, they will be guilty of:

• Class 2 felony
• A sentence of 4 years to 12.5 years
• A Maximum fine of $1000 plus surcharges

COUNTERFEITING

Federal

The penalties provided by 18 USC 471 for counterfeiting consist of:

• A prison term of not over twenty years
• Civil liabilities with the imposition of a fine
• Both imprisonment and the payment of a fine

State

In the state of Arizona, counterfeiting is considered forgery. The penalties provided by ARS §13.2002 for forgery consist of:

• Class 4 felony
• A jail sentence of 1 year to 3.75 years

Proving Guilt in a White Collar Crime

To prove guilt in a white-collar crime case, the prosecutor must prove beyond a reasonable doubt that:

• 1. The crime actually occurred. 
• 2. You committed the crime.
• 3. The crime was an intentional, willful act on your part.
• 4. The crime resulted in someone or some group suffering damages.

What to do if you are under investigation for a white-collar crime

The federal government often sends a “target letter” to suspects alerting them that an investigation is underway. The target letter might encourage you to contact the U.S. Attorney’s office to discuss the investigation. Don’t.

Don’t talk to anyone regarding the investigation except a lawyer. Remember, anything you say can be used against you in court. When those alleged of a white-collar crime try to act independently, they can hurt their case or affirm their guilt.

Immediately retain a qualified criminal defense lawyer experienced in defending federal economic crimes.  A skilled lawyer can use many defenses and legal strategies to prove your innocence or negotiate lesser sentencing. Let an experienced lawyers fight for your case and restore your peace of mind. Contact us.