White-collar crimes are non-violent, financially motivated crimes. Individuals in high-status positions, like corporate executives and government officials, commit these offenses. White-collar crimes involve deceit, fraud, or theft intended to secure financial gain.

Common white-collar crimes under Texas law include embezzlement, fraud, and money laundering. Before a conviction for these offenses, the prosecution must prove all the elements of the crime beyond a reasonable doubt.

The legal consequences of a conviction for white-collar crimes in Texas range from fines to incarceration and a permanent criminal record. Therefore, you must aggressively fight the charges to avoid conviction. If you or a loved one faces charges for a white-collar crime in Texas, you will need the guidance of a knowledgeable defense lawyer.

Common White-Collar Crimes in Texas

The following are offenses classified as white-collar crimes under Texas law:

Fraud

Fraud is one of the most common white-collar crimes in Texas. Texas Penal Code Section 32 addresses different forms of fraud, including check, counterfeiting, and credit card fraud. It involves intentionally deceiving another person or entity to gain an unlawful financial benefit. The prosecution must prove these elements to establish fraud:

  • A misrepresentation of a material fact. The prosecution must show that you made a false statement or misrepresented an essential fact in the transaction context.
  • The knowledge that the information is false. You must have known the information was false or made it recklessly without disregarding the truth.
  • Intent to deceive. You made the false statement to deceive the victim and induce them to rely on it.
  • Justifiable reliance by the victim. The victim relied on the false statement, and that reliance was reasonable or justified under the circumstances.
  • Damages. As a result of the reliance on the false statement, the victim suffered harm or damage.

Fraud can attract severe felony charges. The amount you defraud could significantly impact the nature of your charges.

Embezzlement

Under Texas Penal Code Title 7, Chapter 31, embezzlement involves the misappropriation or theft of funds or property entrusted to one's care by an employee or official. Embezzlement is common in corporate settings where individuals exploit their positions to steal from employers or clients.

Before you face conviction for embezzlement, the prosecution must establish these elements:

  • Theft. The primary element is the unlawful taking or use of property. The Texas PC defines theft as the illegal appropriation of property to deprive the owner of its use.
  • Trust relationship. Embezzlement involves a situation where a property owner entrusts you with their property. It occurs in employment settings, business relationships, or financial arrangements. The prosecutor must prove that you had a trust relationship with the victim of your acts.
  • You acted with fraudulent intent. You are guilty of embezzlement if you use the funds entrusted to you for personal benefit. You could be convicted under this statute even when you intend to return the property or money.
  • You acted with fraudulent intent. The prosecution must prove that you acted with criminal intent to secure a conviction for this offense.

Embezzlement is a form of theft. Individuals who engage in this conduct could face prosecution under general theft laws in Texas.

Money Laundering

Under Texas Penal Code Section 34.02, money laundering involves intentionally engaging in financial transactions to conceal the origins of illegally obtained funds. Money laundering is tied to crimes like drug trafficking, fraud, or organized crime. The elements of money laundering under Texas law include:

  • You engaged in a financial transaction. The prosecution must prove that you participated in a financial transaction. These transactions involve deposits, withdrawals, transfers, or sales of property.
  • You knew of the illegal funds. The court will find you liable for money laundering if you knew or should have known that the funds involved were obtained from criminal activity.
  • Intent to Conceal. The prosecution must prove that you intended to conceal the origin, nature, or ownership of the illegal funds or property.

Money laundering is a serious offense under Texas law. The penalties for this offense increase with the amount of money involved. Additionally, your criminal history can impact the nature of your charges and sentencing.

Identity Theft

Texas Penal Code Section 32.51 criminalizes using another person's identifying information without consent to gain a benefit or harm to that person. The offense occurs when you obtain, possess, or use another individual's personal information. This statute covers name, social security number, and bank account numbers.

The prosecution must establish these elements to secure a conviction for identity theft:

  • Unauthorized use of information. The prosecution must prove that you used or attempted to use another person's personal information. Additionally, it must be clear that you did not have the owner's consent to use the information.
  • Fraudulent Intent. You must act with the intent to harm or defraud another person to be convicted of identity theft.

The severity of your Texas Penal Code Section 32.51 depends on the type and amount of information used and the harm caused. Identity theft can attract felony or misdemeanor charges depending on the specific circumstances.

Insider Trading

Insider trading involves buying or selling securities based on non-public, material information about the company. In Texas, insider trading is charged under federal law. Information is "material" if a reasonable investor would consider it important when making an investment decision.

While no specific statute addresses insider trading, the offense falls under Section 10b of the Securities and Exchange Act of 1934. Individuals who receive tips (tippees) or confidential information for trading stocks could be liable under this statute. The elements of insider trading include:

  • Insider status. You must be an insider to engage in this offense. An insider is someone who has access to material, non-public information. They include corporate officers, directors, employees, or anyone with a fiduciary duty to the company.
  • Use of Information. The prosecution must prove that you used non-public information to make a profit or avoid a loss in securities trading. Your information must be material and not disclosed to the general public.
  • Fiduciary breach. You are guilty of insider trading if you breach your fiduciary duty to protect the information you use.

Forgery

Under Texas law, forgery involves altering, making, executing, or possessing a writing intending to defraud. It includes creating or altering documents such as contracts, checks, or identification cards intending to deceive. Forgery is charged under Texas Penal Code § 32.21. The severity of your offense and punishment will vary depending on the nature of the forged document or the damage caused.

The elements of forgery under Texas law include:

  • You forged a document. The prosecution must prove you willfully made, altered, or executed a false document.
  • Knowledge. You must have known that the document was forged or that the document was false when they used it.
  • Intent to Defraud or Harm. The final element that the prosecution must prove in your case is that you acted intending to defraud. The element is crucial because forgery is more than creating a false document. It involves having the intention to deceive or cause harm.

Penalties for White Collar Crimes in Texas

Although white-collar crimes are non-violent, they can attract severe charges. The penalties you face after a conviction will vary depending on the following factors:

  • The amount of financial loss or harm caused. You will face harsher penalties and fines if you cause a substantial loss to the victims of your crimes.
  • Defendant’s criminal history. The court will examine your criminal record during prosecution and punishment for a white-collar crime. A prior criminal record can lead to harsher penalties.
  • Role in the offense. Whether you played a major or minor role in the crime can impact sentencing for your offense.
  • Intent. White-collar crimes could result from malicious intent or negligence. The purpose behind your actions can impact the severity of the penalties you will face.

A conviction for a white-collar crime will attract the following penalties:

Imprisonment

White-collar crimes can attract felony or misdemeanor charges. In Texas, individuals convicted of white-collar crimes can face significant prison sentences. For example, felony convictions for fraud or embezzlement can lead to prison terms ranging from 2 to 20 years. Spending time behind bars is one of Texas's most dreaded punishments for white-collar crimes. Therefore, you must hire a skilled attorney to help you fight the charges.

Fines

In addition to incarceration, the court can impose fines after a conviction for a white-collar crime. Fines are common in cases involving large-scale fraud and embezzlement. Fines for white-collar crimes range from a few thousand dollars to hundreds of thousands of dollars.

Probation

The court can impose probation instead of imprisonment for less severe white-collar crimes or first-time offenders. During probation, you must comply with certain conditions. They include:

  • Regularly reporting to a probation officer
  • Refraining from further illegal activities
  • Paying restitution to victims.

Failure to follow the conditions could result in a revocation hearing. If the court determines that you violated your probation, it can impose the following orders:

  • A revocation of your probation and reinstatement of jail or prison sentence
  • Change of the terms of your probation

Victim Restitution

Sometimes, the court can order you to pay restitution to the victims of their crime. Restitution involves reimbursing victims for financial losses resulting from the crime.

Civil Penalties

In addition to criminal penalties, you could face civil penalties for white-collar crimes. The victims of our crime can file a civil lawsuit against you. In a successful lawsuit, the court may order you to pay for the financial losses and emotional distress resulting from your actions.

Legal Defenses Against White Collar Crimes

White-collar crimes do not involve causing harm or injuries to others. However, they can cause severe financial losses to the victims. For this reason, Texas law imposes serious legal consequences on defendants found guilty of these offenses. If you face charges for a white-collar crime, you can use the following defenses to negate or reduce your criminal liability:

Lack of Criminal Intent

Challenging the intent behind the alleged criminal act is a primary defense in white-collar crime cases. For most white-collar crimes, the prosecution must prove that you had the specific intent to commit the crime. Proving a criminal intent is often challenging for the prosecution. Therefore, you could avoid a conviction by showing that you lacked the intent to commit fraud, deceive, or engage in illegal conduct.

Sometimes, you can argue that your actions resulted from a mistake or negligence, not intentional criminal behavior. Proving a lack of intent can often lead to a dismissal of charges or an acquittal.

Insufficient Evidence

Each white-collar crime has elements the prosecution must prove beyond a reasonable doubt to secure a conviction. Proving these elements requires the support of physical evidence and witness testimony.

White-collar crimes often involve complex financial records, transactions, and documents. Securing a conviction against you without enough evidence is challenging for the prosecution. Therefore, you can use insufficient evidence as a defense.

Plea Bargaining for White Collar Crimes in Texas

Plea bargaining is common in criminal cases, including fraud and embezzlement. Plea bargaining allows the defendant to plead guilty to a lesser charge or receive a reduced sentence. In exchange, they must cooperate with the prosecution. The plea bargaining process helps speed up court proceedings and reduces the burden on the judicial system.

For white-collar crimes, plea bargaining is helpful due to the complexity of financial crimes. These offenses need significant time and resources to investigate and prosecute. By entering a plea agreement, you can receive a more lenient sentence, including reduced prison time or probation.

However, plea bargaining in white-collar cases is often controversial. Critics argue that it allows wealthy or powerful defendants to escape harsher penalties. Others argue that it ensures a conviction and a resolution in cases where a lengthy trial is impractical. The prosecutors do not easily offer plea deals to defendants facing charges for white-collar crimes. Therefore, you will need the guidance of a skilled attorney to negotiate the agreement.

Entrapment

Entrapment occurs when law enforcement officers induce or coerce a person to commit a crime they otherwise would not have committed. If you can show that law enforcement officers pressured you into committing the alleged white-collar crime, you can use entrapment as a defense.

For white-collar crimes, entrapment applies where an undercover operation prompts the arrest. In this case, an undercover agent must have encouraged a defendant to participate in the fraudulent scheme. For example, an undercover agent might propose an illegal business deal to you, making it appear legitimate.

Moving forward with the deal could result in an arrest and criminal charges. You could avoid conviction under these circumstances by arguing that you would not have done it without the inducement.

Coercion or Duress

Coercion or duress occurs when another person causes you to commit a crime under the threat of imminent harm to you or your loved ones. You can use duress or coercion as a defense against a white-collar crime. However, you must prove the following elements for a successful duress defense:

  • You were under an immediate threat.
  • You had no reasonable way to avoid committing the crime.
  • The threat against you was not hypothetical but actual and imminent.

Texas law is strict about the use of duress. The defense does not apply if you act out of fear of future harm or for personal benefit. This defense's success depends on the case's specific facts and the evidence presented in court.

Lack of Knowledge

White-collar jobs often involve complicated financial transactions or regulatory requirements. Sometimes, people may not fully understand that their actions violate the law. If your actions result in an arrest and criminal charges, you can argue that you lacked knowledge of the criminal nature of the transactions.

Although a lack of knowledge is a viable defense for white-collar crimes, Texas law does not tolerate ignorance or disregard for the law. Therefore, you will need a reliable defense attorney to assert this argument. The success of this defense will depend on the circumstances of your case and the white-collar crime you committed.

Statute of Limitations

In Texas, white-collar crimes are subject to a statute of limitations. The statute of limitations sets a time limit for the state to charge a certain crime. If the prosecution files charges after the statute of limitations has expired, the defendant can seek case dismissal.

The statute of limitations for white-collar crimes in Texas varies depending on the offense. For example, the statute of limitations for fraud is seven years. The court may dismiss the case if the defendant proves the charges were too late.

Find a Reliable Criminal Defense Attorney Near Me

Texas law defines a broad category of white-collar crimes. These offenses range from fraud to insider trading and embezzlement, each carrying serious legal consequences. The enforcement of these laws ensures that individuals and entities abide by ethical and legal standards.

The consequences of a conviction for a white-collar crime go beyond incarceration and fines. The conviction enters your record and could have devastating consequences for your professional life. Fortunately, not all arrests for a white-collar crime result in a conviction. You can avoid or lessen your liability for the offense with a proper defense strategy.

The laws on white-collar crimes in Texas are complex. Therefore, you must hire and retain a skilled criminal attorney to guide you through the case. At Andrew Deegan Criminal Attorney at Law, we offer expert legal guidance and representation for clients battling charges for white-collar crimes in Fort Worth, TX. Contact us today at 817-689-7002 to discuss your case details.