White-collar crime charges apply at both the state and federal level. They relate to a wide range of non-violent offenses that tend to focus on financial fraud—often in commercial settings. The legalities involved are complex, the charges can be federal because they tend to involve internet activity, and the associated penalties are harsh.
If you are facing a white-collar criminal charge, it’s time to consult with an experienced Round Rock criminal defense attorney.
White-Collar Crimes
White-collar crimes are generally financially motivated and involve the use of deceit, a violation of trust, or concealment of information for one’s own gain.
The FBI sums up white-collar crimes this way: These crimes are not violent, but they are not victimless. Because white-collar crimes come with a hefty price tag for those who are defrauded, the State of Texas takes these charges very seriously.
Fraud Charges in Texas
Fraud charges in Texas involve intentional misrepresentation in an attempt to obtain money or other assets under false pretenses. Fraud can range from the very low end, such as swiping someone else’s credit card to buy pizza, to the other extreme, such as engaging in a multi-million-dollar healthcare fraud scheme.
The level of the charge is generally dictated by the dollar value involved and can range from a misdemeanor to a felony.
Some of the most common fraud charges in Texas include the following:
Forgery
Identity theft
Check fraud
Vehicle fraud
Fraud – being what it is – is often committed in someone else’s name, which adds an additional layer of legal complexity and can seriously harm the person whose identity is used but who has nothing to do with the fraudulent scheme in question.
Forgery
Forgery in the State of Texas relates to altering or creating a written document to which one of the following applies:
It seems to have been authorized by someone else.
It seems to have been executed at a different time or place.
It appears to be a copy of an original when there is no actual original.
When the person who engages in the act of forgery intends to defraud or otherwise harm another person, the crime of forgery applies. Forgery is generally charged as a misdemeanor, but any of the following can elevate the charge to a felony:
The document is a will.
The document is a deed.
The document is a security instrument.
The document is a mortgage.
The document is a check.
The document is a credit card.
Identity Theft
The fraudulent possession or use of someone else’s identifying information, such as any of the following, can be charged as identity theft:
Another person’s name
Another person’s date of birth
Another person’s social security number or another government ID number
Another person’s banking information
Another person’s fingerprints
The crime of identity theft involves using the other person’s identifying information without their consent as a means of one of the following:
To obtain goods, services, or anything else of value
To transfer money
The charge of identity theft can range from a state jail felony to a first-degree felony based on the number of times the defendant is accused of obtaining, possessing, using, or transferring another person's or other people’s identifying information.
Check Fraud
Check fraud refers to either stealing someone else’s checks or receiving a stolen check or stolen checks with the intention of using, selling, or transferring them. Check fraud can also occur when the person who writes the check knows there aren’t sufficient funds in the account to cover the amount indicated. The charge level of check fraud is typically a misdemeanor.
Vehicle Fraud
Vehicle fraud relates to the fraudulent transfer of a vehicle by either taking control or acquiring it for fraudulent purposes. Examples include:
Transferring a vehicle with the intention of defrauding the owner
Transferring a vehicle to a third party while knowing that there is a lien or security interest attached
The charge of vehicle fraud is often a felony, and the level is based on the value of the vehicle involved.
Credit Card Fraud
The charge of credit card abuse or credit card fraud relates to the intention of obtaining a fraudulent benefit, and examples include:
Using a fake credit card
Intentionally using a credit card that the accused knows was issued in someone else’s name or that the accused knows was canceled
Using a stolen credit card or stealing a credit card
Buying a credit card from someone other than the cardholder
Selling a credit card that belongs to someone else
Being in possession of two or more blank credit cards, such as for production purposes
Credit card fraud can also involve merchants or others with credit card authorization who accept forged or otherwise fraudulent credit cards for the purpose of defrauding either the cardholder or issuer. In Texas, credit card fraud is generally charged as a third-degree felony.
Insurance Fraud
Insurance fraud can target any form of insurance, including workers’ compensation insurance, car insurance, medical insurance, Medicaid, unemployment insurance, and beyond.
Insurance fraud can take many forms, including the policyholder defrauding the insurance provider or a medical professional or facility engaging in fraudulent billing. Charges for insurance fraud are often based on the overall value of the fraudulent claims involved.
Other Forms of Fraud
In addition to the common forms of fraud discussed above, there are other basic schemes that often lead to white-collar charges.
Tax Fraud
Tax evasion is the most common form of tax fraud, and it relates to deliberately misrepresenting one’s finances in order to avoid tax liability. Because Texas doesn’t levy a personal income tax, the vast majority of tax fraud cases in the state are business-related.
For example, businesses that falsify their earnings to lighten their tax burden engage in tax fraud. Keeping fraudulent records is generally part of the process. Tax fraud charges are based on the amount of the taxes defrauded.
Embezzlement
Embezzlement refers to the illegal appropriation of property – whether it is tangible or not – by a person who is in a position of financial trust. The person in the position of financial trust is said to have a fiduciary duty to the person or entity to whom the assets belong.
Generally, the assets that are embezzled belong to someone else but are entrusted to the person with the fiduciary duty for safekeeping or management – on behalf of the owner’s best financial interests.
Embezzlement can be charged as theft, and in these cases, the level of the charge is based on the value of the assets embezzled. Embezzlement, however, can also be charged in the following categories:
Misapplication of fiduciary property or money, which refers to failing to use the funds entrusted to the accused for their intended purpose
False statement by a fiduciary, which refers to making false statements that are intended to conceal embezzlement by someone who is entrusted with financial responsibility
Breach of trust, which refers to failing to live up to the trust agreement created by using the assets entrusted for one’s personal gain
Credit card fraud and check forgery are considered forms of embezzlement.
Extortion
Extortion is a felony offense that involves the use of coercion, threats, or intimidation to obtain assets, money, or services from someone else. The elements of the crime include intentionally and illegally obtaining—or attempting to obtain—either assets, property, or another form of benefit through the use of coercion of some kind.
Primary examples of extortion include:
Illegal lending practices, such as those employed by loan sharks
Protection rackets that demand money in exchange for protection
The severity of the extortion charge tends to be based on the strength and credibility of the threats involved and the crime’s potential for harm.
Bribery
Bribery and corrupt influence charges in Texas relate to intentionally offering a benefit of some kind, which can include money, in exchange for the other party’s violation of duty or their exercise of a particular discretion on behalf of the person offering the bribe. Other forms of bribery offenses include:
Coercion of a public servant or voter
Obstruction or retaliation
Witness tampering
Money Laundering
The charge of money laundering can apply to many financial transactions, but it generally involves attempting to wash or clean money that was obtained through criminal activity.
This washing is designed to conceal the fund’s original source in a manner that makes an illegal enterprise seem legitimate. For the charge of money laundering to apply, the wrongdoer must have committed the act knowingly, but this doesn’t mean they had to know every detail of the underlying criminal activity.
Activities that qualify as money laundering include all the following:
Acquiring or maintaining an interest in, concealment of, possession of, transfer of, or transportation of the proceeds of criminal activity
Conducting, supervising, or facilitating a transaction that involves the proceeds of criminal activity
Investing, expending, or receiving – or offering to invest, expend, or receive – the proceeds of criminal activity or funds that are believed to be the proceeds of criminal activity
Financing or investing funds – or intending to finance or invest funds – that the accused believes are intended to further the commission of criminal activity
When it comes to money laundering, the accused needn’t have knowledge of the specific nature of the underlying criminal activity to establish guilt.
When the Fraud Charge Is Based on the Value Involved
Some fraud charges in Texas are – like theft charges, which means they are based on the value of the fraud that was perpetrated, and this breaks down as follows:
When the amount is less than $100, the charge is a Class C misdemeanor, which carries up to $500 in fines but no jail time.
When the amount is from $100 to $750, the charge is a Class B misdemeanor, which carries up to $2,000 in fines and up to 6 months in a county jail.
When the amount is between $750 and $2,500, the charge is a Class A misdemeanor, which carries up to $4,000 in fines and up to a year in a county jail.
When the amount is from $2,500 to $30,000, the charge is a state jail felony, which carries up to $10,000 in fines and from 6 months to 2 years in a state jail facility.
When the amount is between $30,000 and $150,000, the charge is a third-degree felony, which carries up to $10,000 in fines and 2 to 10 years in state prison.
When the amount is between $150,000 and $300,000, the charge is a second-degree felony, which carries up to $10,000 in fines and 2 to 20 years in state prison.
When the amount is more than $300,000, the charge is a first-degree felony, which carries up to $10,000 in fines and from 5 to 99 years in a state prison.
These penalties can be enhanced in response to the victim, such as if they are elderly, a child, or someone with a disability.
Consult with an Experienced Round Rock Criminal Defense Attorney Today
Brett Pritchard at the Law Office of Brett H. Pritchard is a practiced criminal defense attorney – proudly serving Round Rock, Texas, for more than two decades – who has a wealth of experience successfully navigating the legal intricacies of white-collar charges – in pursuit of favorable case resolutions that support our valued clients’ rights and best interests.
Our trusted legal team cares about you and your case, so please don’t put off contacting or calling us at 254-781-4222 to schedule a free consultation and learn more about what we can do to help you today.