Are White Collar Crimes State or Federal Crimes?
White collars crimes are prosecuted at both the state and federal levels. So, it’s not uncommon for state prosecutors to take on white-collar crime cases. That said, many white-collar crime cases are prosecuted on a federal level because the federal government has a lot more resources to investigate and prosecute the cases. Also, there’s tradition; some cases are traditionally handled on a federal level, and so they are brought in federal court.
Usually, when fraud cases involve a lot of money, or many people are affected by the defendant’s fraud, federal authorities get involved. Federal courts have broader power than state courts to pursue and bring whitecollar crimes charges against individuals only if the defendant has violated federal law. There are many federal laws that an individual can violate, so it’s very easy for federal authorities to pursue charges against an individual if they wish to do so.
Often there is an overlap in the federal and state law that an individual has violated. That said, some violations have been traditionally brought in federal courts, and so they’re brought in federal court even though they can also be brought in state court. Offenses that are typically brought in federal court include bank fraud, securities fraud, and credit card fraud.
Punishment For Committing White Collar Crimes
White-collar crimes can be punished in a variety of ways:
- Imprisonment: A prison sentence can be imposed upon an individual for varying lengths of time. The term of a prison sentence depends on the dollar amount of the fraud, the severity of the financial injury to people, as well as the number of people affected by the defendant’s fraud.
- Fines: A monetary penalty can be assessed against an individual. This depends on the amount of money authorized by the statute that you’re charged with.
- Restitution: The court may order you to make the victim(s) whole be repaying them the money that you illegal took from them.
- Forfeiture: Forfeiture involves giving up the illegally obtain gains of your white-collar crime. For example, if you defrauded victims of $1 million, the court may order you to forfeit the money and repay it to the victims. Also, if you purchased an asset such as a home with the ill-gotten proceeds, the court may order you to forfeit that asset.