Many large businesses are accused of wrongdoing when the complexity of the enterprise may cause the appearance of wrongdoing to the unschooled observer. In addition, a careful investigation the real amount of loss can seriously mitigate the severity of the charge and potential punishment.

If you think that you may be under investigation or possibly facing criminal charges you are seriously advised to retain the services of an attorney.

The Federal Bureau of Investigation has defined white collar crimes as those "characterized by deceit, concealment or violation of trust, and which are not dependent upon the application or threat of physical force or violence." The charges in such cases allege that the defendant obtain money, property, or services, to avoid payment, or to secure personal or business advantage.

High profile cases appear regularly in the news - corporate officials are accused of concealing substantial sums of money, defrauding shareholders, engaging in insider trading, or filing high-ticket fraudulent insurance claims. However, white collar crime occurs at various levels, often far less dramatic than those examples we see on television.

The National Incident-Based Reporting System (NIBRS) classifies such offenses as writing bad checks, income tax fraud, and even welfare fraud as white collar crimes. The key distinguishing element in white collar crime is that it is based on dishonesty and deception rather than violence or force.

Fraud

Fraud encompasses a wide variety of more specific crimes.

Entering into fraudulent contracts, welfare fraud, mail fraud, strategic bankruptcy, ATM fraud, health insurance fraud, liability/property insurance fraud, travel fraud, telemarketing fraud, wire fraud, home improvement fraud, confidence games, religious fraud, false advertising, fraudulent loan applications, impersonation and insider trading are all categorized by the NIBRS as forms of fraud.

The Department of Justice defines fraud broadly as "the intentional perversion of the truth for the purpose of inducing another person or other entity in reliance upon it to part with something of value or to surrender a legal right". In short the use of trickery or deception to induce another into giving up money, property, or rights.

The wide range of crimes included under this heading implicate a wide range of sentencing possiblities. Generally crimes classified as fraud in the federal criminal system resulte in an average sentence of just over two years. However, here are significant differences that turn upon the type of fraud involved. A major factor in sentencing is the amount that is alleged to have been lost.

Embezzlement

Embezzlement is a particular form of theft wherein the offender has legal access to, but not legal ownership of, money or property taken. The most common situations in which embezzlement occurs are those in which an employee who has access to the employer's money or property ? or to the money or property of the employer's clients ? diverts some of that money or property for his own use. Embezzlement is distinguished from larceny by the embezzler's control over the money or property in question.

Embezzlement doesn't always mean outright theft. Unauthorized borrowing of money or property entrusted to one's care may also constitute embezzlement. Embezzlement covers a broad spectrum of offenses ranging from high-level bank employees accused of taking large sums from the banks accounts to very petty offenses.

At the federal level, embezzlement from private businesses or individual clients is punished more harshly than embezzlement from banks and governmental agencies.

Forgery and counterfeiting

Forgery and counterfeiting refer generally to the copying or alteration of something in order to pass the copy or altered version off as original and authentic. Signing another person's name to a check or document without that person's permission is forgery. The creation of false documents may be classified as either forgery or counterfeiting, depending upon a number of factors.

For instance, the creation of a copy of a work of art in an attempt to sell the copy as the original might constitute forgery or counterfeiting or both.

Historically, "forgery" referred to written instruments, while "counterfeiting" applied to the manufacture of works and objects such as money and artwork. A falsified deed to real property, an altered check, and counterfeit currency are some of the most common.

Bribery

Bribery and extortion are both crimes intended to persuade another person to act in a certain way. Bribery attempts to influence the other person's behavior by offering some benefit, often money, in compensation for that decision.

For instance, a business impacted by a certain piece of legislation might offer money, or a campaign contribution, to an official who voted as the company wished.

Extortion

The primary difference between bribery and extortion is that where bribery attempts to persuade through the offering of a benefit, extortion seeks to achieve the same effect through the use of threats. Those threats may relate to disclosure of personal or embarrassing information, or may be threats of physical harm. Extortion often carries a much longer prison sentence than bribery.

Cyber and Computer crime

Possibly more all-encompassing than any other classification described, cyber crime includes virtually any crime that occurs using internet or networking technology.

Cyber crimes range from the relatively minor ? like stealing wireless internet access ? to serious ? like hacking into secure networks, illegally redirecting web servers and causing computer viruses.

Crime may also be classified as cyber crime, or charged in conjunction with another crime, when the internet is used in the commission of more traditional crimes like fraud and child pornography.

Because of the discrepancy among state statutes and the varying degrees of seriousness, penalties for cyber crimes vary widely.

Identity Theft

Identity theft is the use of another person's identity and personal information for purposes such as obtaining fraudulent credit accounts.

Over the course of recent years credit card and other finance companies have seen significant losses from identity theft and have developed a new interest in cooperating in the prosecution of these crimes.

Identity theft may be subject to state or federal prosecution. Sentencing varies substantially as legislation is developing in this area.

tax Evasion and Tax Fraud

Although some tax crimes are charged under fraud statutes, tax evasion laws generally encompass any effort to avoid paying taxes. This may mean failure to file tax returns, misreporting of income or deductions, or any other deliberate action taken to avoid the payment of taxes due.

Tax evasion charges may relate to federal or state taxes ? or in some cases perhaps even local taxes

It's important that you understand the possible penalties that may apply in your case before your case begins moving forward. Some defenses require advance notice and filing deadlines may be strictly enforced.

The summaries found on these pages are intended to give a broad picture of the types of criminal charges and are not intended as legal advice. The laws may have changed from the last update. For reliable information on state and criminal laws speak to an experienced criminal defense attorney about the facts of a specific case.

For a free initial consultation please call the Law office of Sydney Smith PA