WHITE COLLAR CRIMES

The term “white collar crime” describes a variety of conduct.   The term was first used by Edwin Sutherland when he addressed the American Sociological Society in 1939.  Dr. Sutherland presented the position that corruption among affluent business and government officials caused as much harm to society as what is commonly referred to as “street” or “blue collar” crime.  Thus, society should take action to identify and punish individuals involved in such conduct. 

 Perhaps “white collar crime” is best defined as property crimes associated with business that do not result in physical injury to any person.  This broad definition can apply to complex investment schemes such as those publicized in the Enron scandal, or insider trading allegations such as those brought against Martha Stewart.  The definition can also apply to more direct criminal activity such as telemarketing schemes, Internet fraud, and embezzlement.

 Some examples of “white collar crimes” are:  access device fraud, bank fraud, blackmail, bribery, cellular phone fraud, computer/internet fraud, counterfeiting and forgery (not only currency but also certificates, documents of authenticity, licensing documents, identity, contractual agreements, etc.), credit card fraud, futures speculation schemes, copyright infringements, embezzlement, environmental regulation violations, extortion, fraud involving the health care industry, insider trading, insurance fraud, investment schemes, money laundering, securities fraud, tax fraud and evasion, telemarketing schemes, fraud involving illegal attainment of government services or benefits, bait and switch schemes, price fixing, false advertising, improper weights and measures for marketable goods, etc.  This is by no means an exhaustive list of all of the conduct that could be characterized as “white collar crime.”

 Often, subjects of investigations of “white collar crimes” are accused of committing wire or mail fraud, obstruction of justice, or for making false statements to federal investigators. 

 Wire and mail fraud prosecutions are very common in the arena of “white collar crime.”  The difference between wire or mail fraud is that with wire fraud, the defendant used the “wires” (i.e., phones, fax, radio, etc.) to further the scheme to defraud, whereas with mail fraud, the defendant uses the United States Postal Service.  See 18 U.S.C. §§ 1341, 1343.

 The wire and mail fraud charges are very serious charges.  The two carry a statutory maximum penalty of twenty (20) years imprisonment!

 You may wonder why you or your company may be charged with wire or mail fraud for conduct that is more specifically addressed in other statutes.  Especially in light of the fact that in today’s marketplace, businesses of all types are highly regulated.  Perhaps it was explained best in a Second Circuit case from New York:

 “To federal prosecutors of white collar crime, the mail fraud statute is our Stradivarius, our Colt 45, our Louisville Slugger, our Cuisinart--and our true love. We may flirt with RICO, show off with 10b-5, and call the conspiracy law 'darling,' but we always come home to the virtues of 18 U.S.C. § 1341, with its simplicity, adaptability, and comfortable familiarity.”

 United States v. Pisani, 773 F.2d 397, 409 (2nd Cir. 1985) (citing Rakoff, The Federal Mail Fraud Statute (Part 1), 18 Duq.L.Rev. 771, 771 (1980)) (footnotes omitted).

 In other words, due to the simplicity of the wire and mail fraud statutes and because of the fact that oftentimes prosecutors are unable to identify violations of more specific statutes, the prosecutors simply rely on their “sweetheart” statutes, Mail or Wire Fraud.  The prosecutors twist the facts in an attempt to satisfy the elements of the Mail or Wire Fraud statutes. 

If you have been charged with Mail or Wire Fraud, or conspiracy to commit mail or wire fraud (which carries the same penalty as Mail or Wire Fraud), you are facing very serious charges.  The author HIGHLY recommends that you obtain COMPETENT legal counsel IMMEDIATELY.  If you anticipate that you may face Mail or Fraud charges, or conspiracy to commit Mail or Wire Fraud charges, the author recommends that you obtain COMPETENT legal counsel AS SOON AS POSSIBLE.  If you are aware that you or your company is being investigated as a result of your business activities, the author recommends that you obtain COMPETENT legal counsel AS SOON AS POSSIBLE.  For a free legal consultation,  call (865) 637-2900.

 Competent legal counsel is very important from the moment that you realize you may be the subject of an investigation for any conduct that may constitute “white collar crime.”  Often, legitimate business people find themselves prosecuted for unintentionally making false statements to investigators (just ask Martha Stewart), or for other unintentional actions that can be construed as an attempt to obstruct justice.  The risk of such prosecution necessitates the acquisition of legal counsel AS SOON AS POSSIBLE.  For a free legal consultation, call (865) 637-2900.