What is a white collar crime?
White collar crime is a broad term for nonviolent crimes usually committed in commercial situations for financial gain. The FBI describes these crimes as marked by fraud, concealment, deceit and a violation of trust rather than force or threats. They can break state law, federal law, or both.
- White collar crime covers nonviolent offenses usually committed in commercial situations for financial gain.
- Examples include embezzlement, bankruptcy fraud, credit card fraud, securities fraud, tax evasion, kickbacks, money laundering and computer fraud.
- The FBI says these crimes involve fraud, concealment, deceit and a violation of trust, not physical force or threats of violence.
- A white collar crime can violate state law, federal law, or both.
- When a case is prosecuted federally, the penalties are generally harsher than in state court.
In the criminal justice system, we have state and federal crimes, infractions, misdemeanors, and felonies. We also have capital felonies and white-collar crimes. For the purposes of this article, we’re shedding light on “white-collar crimes,” what they are and what sets them apart from other crimes.
When you hear the term “white-collar,” you probably think of a man in a white-collared shirt and a business suit, and for good reason – the image you got in your mind was probably exactly what the originator of the term intended.
White-Collar Crime Defined
According to the Legal Information Institute, “White-collar crime generally encompasses a variety of nonviolent crimes usually committed in commercial situations for financial gain.”
White-collar crimes include but are not limited to:
- Embezzlement
- Bankruptcy fraud
- Credit card fraud
- Securities fraud
- Tax evasion
- Kickbacks
- Money laundering
- Computer fraud
According to the Federal Bureau of Investigation (FBI), white-collar crime has to do with a full range of frauds that are committed by business and government professionals. Such crimes are unique; they are characterized by fraud, concealment, deceit, and a violation of trust, however, they’re not dependent on physical force or threats of violence.
“These are not victimless crimes. A single scam can destroy a company, devastate families by wiping out their life savings, or cost investors billions of dollars (or even all three). Today’s fraud schemes are more sophisticated than ever, and the FBI is dedicated to using its skills to track down the culprits and stop scams before they start,” according to the FBI.
Are White-Collar Crimes State or Federal?
White-collar crimes can be a violation of state or federal law. Sometimes, they are a violation of both. In that case, the state and federal prosecutors will look at the case and decide whether to press charges in the state or federal court. Generally, when a white-collar crime violates state and federal law and it’s prosecuted on the federal level, the penalties are harsher than if the crime was prosecuted on the state level.
Facing charges for a white-collar crime? Contact our firm to meet with Attorney Peter Barrett. Call (214) 526-0555 24/7 to schedule a free consultation.
Common questions
What are examples of white collar crimes?
Embezzlement, bankruptcy fraud, credit card fraud, securities fraud, tax evasion, kickbacks, money laundering and computer fraud, among others.
Are white collar crimes violent?
No. They do not depend on physical force or threats of violence. The FBI describes them as crimes of fraud, concealment, deceit and a violation of trust.
Are white collar crimes prosecuted in state or federal court?
Either, and sometimes the conduct violates both. When it does, state and federal prosecutors look at the case and decide which court will bring the charges.
Are the penalties harsher in federal court?
Generally, yes. When a white collar crime that violates both state and federal law is prosecuted at the federal level, the penalties are usually harsher than in state court.
This article is general legal information about Texas law, not legal advice about your case. Reading it does not create an attorney-client relationship. Laws change, so confirm the current rule with a licensed Texas criminal defense attorney about your specific facts. Request a free case review.