Those convicted of white-collar crimes may face mandatory financial penalties, keep reading to learn more. 

White Collar Crime 

The term “white collar crime” was presumedly coined in 1939 and is used as an umbrella term to describe a full range of frauds that are committed by business and government professionals. A few of the crimes that fall under the “white collar crime” definition include: public corruption, healthcare fraud, mortgage fraud, money laundering, and securities fraud. Just because these types of crimes do not include violence does not mean that they are not devastating to those who fall victim to them. 

According to the Federal Bureau of Investigations (FBI), white collar crime costs the United States $300 billion annually. The Department of Justice cites financial losses from white collar crimes in the $426 billion to $1.7 trillion range per year. White collar crimes can ruin the lives of victims by wiping out their life savings. They also negatively impact society by driving up the price of goods and services and ruining businesses. Those who are convicted of these types of crimes also face life-changing consequences when caught. 

You’ve Been Convicted of a White Collar Crime. Now What? 

Although white collar crimes lack violence, they are still considered federal level crimes and carry harsh penalties for those convicted. Time spent in prison, usually served in a minimum security facility, depends on the severity of the offense. While white collar crime is financially motivated, the penalties for such crimes are financially aggressive and can impact the life of those convicted for decades after the crime. 

The penalties for a white collar crime conviction focus around paying back what was fraudulently acquired. In the eyes of the law, those who have been victims of a crime deserve to get their money or property back. The determining factors in assessing the penalties for committing such crime include the number of victims, the amount of money involved, and the criminal history of the offender. 

Common penalties for white collar crimes include: 

• Time in Prison: Common prison terms for white collar crimes range from 19-27 months. However, those crimes with more money attached to them result in longer prison terms, sometimes 10 years or more. 

• Asset Forfeiture: Any money or property tied to the white collar crime that was committed is seized by the government. 

• Financial Penalties and Restitution: Hefty fines are placed on those committing white collar crimes in order to deter others from committing the same offenses. Repayment, or restitution, to the victims is often part of the sentence as well. 

• Probation: Probation, or house arrest, may be ordered instead of prison time. Probation following a prison term is also highly likely. 

• Other Consequences: The loss of professional licenses by those who commit white collar crimes is probable. The reputation of those convicted is also shattered which leads to long term trouble finding employment. 

Restitution and forfeiture are two of the most common, and long-lasting, consequences of a white collar crime conviction. The purpose of both is to make sure victims are compensated for their loss and that those who illegally gained from their crime do not benefit from it. Understanding the severity of both is important if you’re facing a white collar crime conviction. 

Restitution & Forfeiture 

Restitution and forfeiture are different consequences that each try to “make things right” after a white collar crime has been committed. These penalties can be ordered simultaneously which means those convicted face steep financial hardship. 

Restitution: Restitution aims to make victims whole again. Due to the Mandatory Victims Restitution Act, restitution is mandatory in many federal cases, regardless of whether the convicted party has the ability to pay. There is really no time limit on restitution, as it lasts 20 years (not including incarceration). If the victim passes away, payments are paid to their estate, and if the convicted party passes away, the remainder of the restitution is taken from their estate. 

Forfeiture: Forfeiture revolves around the idea that those convicted of committing white collar crimes cannot continue to benefit from them. Therefore, any money, property or other assets acquired through the crime are seized by the government. Sometimes forfeited assets can be used to pay restitution to the victims of the crime. 

Both of these consequences are meant to compensate victims for their losses in a white collar crime and both can be very costly to those convicted. 

Defending White Collar Crime Accusations  

If you or someone you know has been accused of a white collar crime, it is imperative that you obtain the assistance of a knowledgeable, experienced attorney. Facing white collar crime accusations is serious with serious consequences if you’re found guilty. The legal team at the Law Offices of Robert J. DeGroot can help! 

Reach out to the Law Offices of Robert J. DeGroot today!