What is White Collar Crime?

White collar crime refers to non-violent offenses typically committed in professional, business, or government settings for financial gain. Unlike traditional crimes that rely on force or violence, white collar offenses use deception, misrepresentation, or abuse of trust to achieve an unlawful objective.

So, what is white collar crime? The term was introduced in the late 1930s by sociologist Edwin Sutherland, who described it as “a crime committed by a person of respectability and high social status in the course of their occupation.” Today, white collar crime encompasses a wide variety of state and federal offenses prosecuted in California courts and across the nation.

Because these cases often involve large sums of money or federal jurisdiction, agencies such as the FBI, IRS, SEC, and the U.S. Department of Justice frequently lead investigations.

Definition of White Collar Crimes

1. Non-violent in nature
   These offenses rarely involve physical harm. Instead, they rely on deceit, fraud, or concealment.
2. Financial motive
   The goal is almost always profit, whether through misappropriation, fraudulent schemes, or securing business advantages.
3. Professional context
   Many defendants are executives, business owners, or public officials in positions of trust.
4. Complexity
   Cases often involve extensive paper trails, digital records, and intricate financial structures.

Examples of White Collar Crimes

Fraud

Fraud covers a broad set of schemes where one party intentionally misrepresents facts to gain money or property.

• California law:
  • Penal Code §484 & §487 — Theft by false pretenses and grand theft.
  • Penal Code §470 — Forgery.
  • Penal Code §532 — General fraud statute.
• Federal law:
  • 18 U.S.C. §1341 — Mail fraud.
  • 18 U.S.C. §1343 — Wire fraud.
  • 18 U.S.C. §1344 — Bank fraud.

Embezzlement

Taking property or funds that were lawfully entrusted to you and converting them for personal use.

• California Penal Code §503 defines embezzlement.

Insider Trading & Securities Fraud

Trading stocks or securities based on non-public information or misleading investors.

• 15 U.S.C. §§78j(b), 78ff — Securities Exchange Act.
• SEC Rule 10b-5, 17 C.F.R. §240.10b-5 — Prohibits fraudulent securities practices.

Money Laundering

Concealing the source of illegal funds by moving them through financial systems.

• California Penal Code §186.10 — State money laundering statute.
• 18 U.S.C. §§1956 & 1957 — Federal money laundering statutes.

Bribery & Public Corruption

Exchanging money, gifts, or favors to influence public officials or business decisions.

• California Penal Code §67, §68 — Bribery of executive officers.
• California Penal Code §92, §93 — Judicial bribery.
• California Penal Code §85, §86 — Legislative bribery.
• 18 U.S.C. §201 — Federal bribery of public officials.
• 18 U.S.C. §666 — Bribery involving federally funded programs.

Tax Evasion

Failing to report income or deliberately misleading tax authorities.

• 26 U.S.C. §7201 — Federal tax evasion.

Organized Schemes (RICO)

If crimes are committed as part of an enterprise, prosecutors may use the Racketeer Influenced and Corrupt Organizations Act.

• 18 U.S.C. §§1961–1968 — RICO statutes.

White Collar Crime Penalties and Consequences

White collar convictions can be just as severe as violent crimes. Possible penalties include:

• Imprisonment — Many fraud and money laundering offenses carry potential federal sentences of 20 years or more.
• Fines & restitution — Courts impose restitution under 18 U.S.C. §3663 and fines that may reach millions.
• Loss of professional licenses — Doctors, accountants, lawyers, and brokers may face disciplinary boards.
• Civil liability — Victims can also sue for damages in civil court.
• Collateral consequences — Loss of immigration status, voting rights, and reputational harm.

Federal vs. State Prosecution

• Federal cases: Wire fraud (18 U.S.C. §1343), securities fraud, and large-scale money laundering are almost always prosecuted federally because they involve interstate commerce or federal markets.
• State cases: California prosecutors pursue embezzlement (Penal Code §503), forgery (Penal Code §470), or bribery when the conduct occurs entirely within state jurisdiction.

White Collar Criminal Defense

Common defenses include:

1. Lack of intent — Many statutes require “knowingly and willfully.” Mistakes in accounting or record-keeping may not satisfy this burden.
2. Insufficient evidence — Complex cases often rely on circumstantial or digital records that may be unreliable.
3. Unlawful search and seizure — Evidence obtained in violation of the Fourth Amendment can be suppressed.
4. Entrapment — If government agents induced a person to commit a crime they were not predisposed to commit.
5. Statute of limitations — For many California Penal Code fraud charges, the statute is three years; for federal wire fraud, it is typically five years.

What To Do If You’re Under Investigation

If you suspect you’re being investigated:

1. Do not destroy evidence — This can lead to obstruction charges under 18 U.S.C. §1519.
2. Hire experienced counsel immediately.
3. Preserve emails and records — Suspend deletion policies.
4. Do not speak to investigators without counsel — Even casual remarks can be used against you.
5. Avoid public discussions — Media and social media can harm your defense.

The Importance of Legal Representation

Federal prosecutors and California district attorneys dedicate enormous resources to these cases. Without a skilled criminal defense lawyer in San Diego , defendants are at a serious disadvantage.

An experienced criminal defense lawyer can:

• Challenge the admissibility of evidence obtained without proper warrants.
• Negotiate with U.S. Attorneys or California prosecutors to reduce charges.
• Retain forensic accountants and expert witnesses.
• Argue for alternatives such as diversion, probation, or reduced sentencing under the U.S. Sentencing Guidelines.
• Protect your reputation and career.

What is White Collar Crime? – Conclusion

White collar crime may be non-violent, but the consequences are severe. California Penal Code provisions such as §503 (embezzlement), §470 (forgery), and §186.10 (money laundering), along with federal statutes like 18 U.S.C. §1343 (wire fraud) and 18 U.S.C. §1956 (money laundering), give prosecutors powerful tools. Convictions can lead to prison, fines, restitution, and permanent damage to one’s career and reputation.

If you are under investigation or charged with fraud, embezzlement, bribery, or any other white collar offense, the single most important step is to contact an experienced white collar crime attorney in San Diego immediately. Early legal intervention can make the difference between conviction and dismissal.