A white-collar offense is a non-violent offense committed for financial gain. These offenses include forgery, money laundering, identity theft, and embezzlement. In Texas, these crimes are prosecuted under state and federal statutes, based on the nature of the offense. To obtain a conviction against you for a white‑collar crime, the prosecutor must prove every element of the crime.

Although they do not involve physical violence, these crimes can result in significant penalties, including imprisonment, fines, restitution, and probation. Besides these penalties, you will have a criminal record that will appear in your background checks. A white-collar crime conviction can affect your employment opportunities and ruin your reputation.

For this reason, you must fight to beat the charges. Consult a reliable criminal defense attorney if you are arrested for these offenses. Your lawyer will help you understand your case's complexities and prepare an adequate defense.

Common White-Collar Crimes Under Texas Law

A white-collar crime is a non-violent offense often committed by people in business, government, or professional settings. These offenses involve fraud, deceit, or a breach of trust, rather than physical force or violence. Commonly prosecuted white-collar offenses in Texas include:

Forgery (Texas PC 32.21)

Under Texas law, forgery involves altering, making, or executing any writing intending to defraud another person. Typical forms of forgery include:

  • Signing someone else's name on checks
  • Falsifying legal documents
  • Altering financial records

Forgery can attract felony or misdemeanor charges, depending on the case circumstances. If the writing is not a check or a government document, you will face a misdemeanor charge with a 1-year jail term and a fine not exceeding $4,000.

If the writing is a check or similar financial document, you will face a jail sentence ranging from 180 days to two years and a fine not exceeding $10,000. If you forged a money stamp, securities, or a government document, you could face charges for a felony. A felony forgery conviction is punishable by a prison term of 2 to 10 years.

Credit Card Abuse (Texas PC 32.31)

A violation of Texas PC 32.31 involves acts like:

  • Using someone else's credit or debit card without consent
  • Possessing a stolen credit or debit card
  • Using a credit or debit card with the intent to defraud
  • Using an expired or canceled card

Your conviction for credit card misuse attracts a maximum of two years in county jail and fines that do not exceed $10,000. The prosecution can also file felony charges against you if you committed the crime against an older adult. Under these circumstances, you will face a sentence ranging from two to ten years and fines not exceeding $10,000.

Money Laundering (Texas PC 34.02)

Under Texas law, money laundering entails transactions with proceeds of criminal activity, such as drug trafficking or fraud. The law also criminalizes transporting, spending, or investing criminal proceeds. Money laundering is a felony. The seriousness of your money‑laundering charge under Texas Penal Code § 34.02 depends on the total value of funds laundered. You will face a:

  • State jail felony if the amount is $2,500 to $30,000
  • 3rd-degree felony for $30,000 to $150,000
  • 2nd-degree felony for $150,000 to $300,000
  • 1st-degree felony when over $300,000 is laundered

The penalties you will face after a conviction under Texas PC 34.02 include a sentence ranging from five to ninety-nine years or life imprisonment.

Insurance Fraud (Texas PC 35.02)

Insurance fraud involves the submission of false or misleading information to an insurer with the intent to obtain benefits. You could be arrested and charged for this crime for exaggerated claims, fake medical expenses, or staged accidents.

Prosecutors can charge insurance fraud as a misdemeanor or a felony, based on the amount you defrauded. In addition to spending time behind bars and paying fines, the conviction can devastate your professional and personal lives.

Identity Theft  Under Texas PC 32.51

You commit the crime of identity theft by obtaining, possessing, transferring, or using someone else’s identifying information with the intent to harm or defraud. Information can include names, social security, bank, or biometric data. Before you face a conviction for this offense, the prosecutor must link your actions with the intention to defraud someone else.

The number of stolen items in your possession will determine the nature of your identity theft charge. You will face charges for a:

  • State jail felony for possession of fewer than five items.
  • 3rd-degree felony for 5 to 10 items.
  • 2nd-degree felony for 10 to 50 items.
  • 1st-degree felony for more than 50 items.

The penalties for this offense will range from 5 to 99 years in state prison, and fines not exceeding $10,000.

Each item of identifying information is counted separately, which increases the potential penalties. If you face charges for identity theft, you will require the guidance of a skilled attorney.

Securities Fraud (Gov’t Code § 4007.203)

Securities fraud involves misrepresenting or omitting essential facts when offering or selling stocks or other investments. Acts that could result in your arrest and charges for this offense include:

  • Insider trading
  • Selling unregistered securities
  • Using manipulative or deceptive practices.

Securities fraud is a felony. If convicted of this crime, you will face a prison term of up to ten years and fines not exceeding $10,000. If you defraud multiple victims or cause significant losses, you could face charges for a second-degree felony, which increases your punishment.

Tax Evasion

Tax evasion involves intentionally avoiding the payment of legally owed taxes. Texas does not have a state income tax. However, tax evasion could involve other state taxes, like sales or franchise taxes. Acts that constitute tax evasion include:

  • Underreporting
  • Falsifying records
  • Collecting taxes and failing to remit them

Under Texas Tax Code 111.0611, tax evasion is a serious criminal offense. The seriousness of your penalties depends on the amount of tax evaded. For instance, evading under $100 is a Class C misdemeanor; after a conviction, you will face a fine of not more than $500. On the other hand, avoiding more than $300,000 in taxes is a first-degree felony, carrying a potential life sentence.

Embezzlement (Texas Penal Code 31.03)

Embezzlement involves appropriating another person's property for personal use. The offense is common in employer-employee relationships. Under these circumstances, the employee misuses the property or money entrusted to them. It includes acts like:

  • Skimming funds
  • Misusing corporate credit cards
  • Redirecting payments.

Embezzlement can attract misdemeanor or felony charges based on the amount you embezzled:

  • Embezzling $1,500 or less is considered a misdemeanor and may result in a jail term of up to a year.
  • If the amount stolen is between $1,500 and $20,000, it's classified as a state jail felony, carrying a potential sentence of two years.
  • Theft of an amount not exceeding $100,000 is a third-degree felony, punished by a prison term of 2 to 10 years.
  • When the amount falls between $100,000 and $200,000, the offense becomes a second-degree felony, which could lead to a prison term of two to twenty years.
  • Embezzlement involving more than $200,000 is categorized as a first-degree felony and can result in a prison sentence ranging from 5 to 99 years.
  • Embezzlement from the government, older adults, or nonprofit organizations can increase the offense level, resulting in harsher punishment.

Lasting Consequences of Your Conviction for White-Collar Offenses in Texas

Many defendants facing charges for these crimes focus on the immediate penalties. However, the impact of your conviction can go beyond fines and incarceration. In Texas, the effects of a white-collar crime are long-lasting and sometimes life-changing. They include:

Damage to Employment Prospects

Convictions for white-collar crimes like embezzlement or forgery can impact future employment prospects. Criminal convictions remain on your criminal history. Most employers will check your background before offering you a job.

When the conviction appears on your background, the potential employer can use it to deny you the job. Even after completing a sentence, you may be disqualified from holding specific licenses or trusted positions.

Loss of Professional Licenses

For professionals who require a license to practice, honesty and good conduct are key to obtaining the license. After your conviction, your licensing board will receive notice from law enforcement. After receiving the notice, the board will investigate the conduct and can impose severe disciplinary action against your license. Most white-collar offenses result in losing your professional license through revocation or suspension.

In Texas, agencies such as the Texas State Board of Public Accountancy or the State Bar of Texas can revoke your credentials after a conviction for fraud. Under these circumstances, the license reinstatement can be lengthy and uncertain.

Immigration Consequences

One of the most severe consequences of a white-collar conviction is incarceration. However, for non-citizens convicted of white-collar crimes in Texas, there is an added risk of losing their immigration status. Federal immigration law classifies most white-collar offenses as crimes of moral turpitude, a basis for adverse immigration action.

Following conviction, noncitizens may face removal and be barred from reentry under federal immigration law.

Loss of Civil Rights

A conviction for a felony offense in Texas will result in the loss of certain civil rights. They include the right to vote, hold public office, and serve on a jury. While the court restores your right to vote after completing a sentence, other rights may remain restricted for extended periods. Therefore, you must aggressively fight to avoid a felony conviction and keep your rights.

Social and Reputational Stigma

Besides legal penalties, individuals convicted of these crimes face long-lasting social consequences. Reputational harm can extend into personal relationships and community standing.

Financial and Civil Liability

A white collar offense conviction comes with significant financial consequences. They include court fines and restitution. These payments can lead to decades of financial obligation. Additionally, you may face a civil lawsuit by victims seeking further damages. These obligations can result in garnishments, liens, or even bankruptcy.

Legal Defenses For White-Collar Offenses  in Texas

State and federal authorities prosecute these crimes in Texas. The penalties of a conviction for the offenses are severe and sometimes life-changing. You are left with a permanent criminal record after spending a substantial amount of time behind bars and paying hefty fines.

A conviction can damage your professional reputation and hinder future career opportunities. Therefore, you must aggressively fight the charges to avoid a conviction. The following are common defenses you could present against the charges:

Lack of Intent

When you face charges for a white-collar offense, the prosecuting attorney must establish that you acted with the intention to defraud another person. Often, proving a fraudulent intent is not easy for the prosecutor.

You can avoid the conviction for the specific offense by arguing a lack of specific intention to commit the crime. For example, if you are a business executive, providing inaccurate financial information to investors can result in your arrest and charges for fraud. In this case, you could argue that you did not know the information you provided was incorrect.

Mistake of Fact

A mistake of fact defense argues that the defendant misunderstood a key detail of the criminal act. For example, you can face charges for wire fraud for providing inaccurate data. Under these circumstances, you can argue a mistake of fact.

However, the defense is applicable if you genuinely believed their information was accurate. A mistake of fact differs from ignorance of the law, which is generally not a valid defense. Instead, it relies on the idea that you misinterpreted a factual situation.

Duress or Coercion

You can use coercion or duress to defend against a white-collar crime charge. Duress means that another person forced you into committing the offense. The defense is more common in criminal enterprises, where lower-level individuals are forced to participate against their will. The duress or coercion defense is applicable if you can prove these elements:

  • You were subject to an immediate threat of serious harm
  • The threat against you or your loved one was inescapable.
  • The coercion directly caused your actions.

Entrapment

Under Texas Law, entrapment is a situation where law enforcement agents induce an individual to commit an unlawful act that they could not otherwise have committed. In Texas, entrapment is a common defense in white-collar cases. It arises when the arrest results from an undercover or sting operation.

The key to a successful entrapment defense is proving that the idea to commit the crime originated from the law enforcement officer or undercover officers. Additionally, you could not commit such a crime without their inducement.

Insufficient Evidence

The prosecutor must prove all the elements of the specific crime beyond a reasonable doubt to secure a conviction for these crimes in Texas. Presenting physical and circumstantial evidence supports these elements. White-collar cases often involve complex documentation and technical data. Therefore, the prosecution must have specific information to clearly link you to the offense.

The court can dismiss the charges if the prosecutor cannot link the crime to you. Your defense attorney may scrutinize each piece of evidence to highlight gaps or contradictions. The information will doubt the prosecution’s case and increase your chances of beating the charges.

Statute of Limitations

This is a deadline for the prosecution to file criminal charges. The deadline for filing most of these charges in Texas ranges from 3 to 7 years. You can petition the court to dismiss the charges if the alleged criminal act occurred outside this time frame. However, you must examine whether the statute was paused. It happens when you flee jurisdiction, which makes it challenging to begin investigations.

Consent or Authorization

The defense asserts that you received authorization from the relevant authorities or were within your job's scope. For example, an employee accused of embezzlement can argue that they had permission to make certain financial transactions. You can use documentation, emails, or testimony from colleagues to support this argument. Proving that the act was authorized can nullify criminal liability for the crime.

Insufficient Mental Capacity

You can argue that you lacked the mental capacity to commit the white-collar crime. Although the defense is less common, it can be powerful. The mental incapacitation can stem from:

  • Mental illness
  • Cognitive impairment
  • Being under the influence of drugs.

For a successful defense, you will need testimony from a psychiatrist. Texas law allows for the defense of insanity in criminal cases. However, it requires a high standard of proof to establish.

Find a Competent Criminal Lawyer Near Me

Although white collar offenses are not violent, they cause significant economic losses to the victims. The impact of your white-collar offense conviction goes beyond time and incarceration. The conviction will remain on your criminal record and can impact multiple aspects of your life.

Fortunately, you can present defenses like lack of intent, mistake of fact, and entrapment to fight the charges. Each criminal case is unique. Therefore, the defense you use in your case will depend on the evidence available and the surrounding circumstances.

Hiring and retaining an experienced white-collar criminal defense attorney is crucial when you face charges for a white-collar crime. At Andrew Deegan Criminal Attorney At Law, we will help you navigate the complex legal matters and secure a favorable outcome in your case. Call us at 817-689-7002 from Fort Worth, TX, for much-needed guidance.