There are many different white collar crimes, from numerous distinct forms of fraud to embezzlement and money laundering. Most of those crimes violate both federal and state criminal statutes. State laws often mirror federal regulations, and people may not understand the nuances that determine jurisdiction for criminal prosecution.
While people might expect to face charges in the state courts, white collar crimes frequently lead to prosecution in the federal criminal courts instead. Defendants may then be subject to mandatory minimum sentences, federal orders of restitution and the possibility of serving a sentence states away from where their families live.
Several key details may influence the likelihood of federal prosecution for those accused of committing white collar crimes.
1. Interstate activities
The jurisdiction for a criminal case largely depends on where the crime occurred. Offenses in the financial sector may involve a defendant physically present in Florida, but there could be victims impacted by the financial crime in numerous other states. Any significant criminal activity that involves interstate commerce or an interstate conspiracy is likely to trigger federal prosecution.
2. The use of federal infrastructure
Many of the most serious white collar criminal offenses involve the misuse of infrastructure for fraudulent financial purposes. For example, businesses may engage in widespread money laundering using transfers through the Federal Reserve.
Those engaging in wire fraud use telecommunication systems as part of their schemes to communicate with the people they target, putting them at risk of federal charges, even if everyone involved lives in the same zip code. The use of the mail system to distribute fraudulent marketing materials or as a means for parties to send checks could also constitute grounds for federal prosecution.
3. Investigations by federal agencies
The Securities and Exchange Commission (SEC), Financial Crimes Enforcement Network (FinCEN) or the Federal Bureau of Investigation (FBI) may look into alleged white collar crimes. Even investigations that begin at the local or state level may eventually require the resources available to these large federal agencies.
Federal prosecution can be a much more complex process than state prosecution, and white collar defendants need experienced legal guidance in navigating the federal criminal courts. Securing that as soon as possible after learning about a federal investigation or pending charges can help people limit the risk of facing the worst consequences.