White COllar Criminal Defense
General
White collar criminal cases are usually document-heavy prosecutions. The government has forensic accountants and as many agents as necessary to investigate.
The investigation will start before the target is aware. They will start with a tip and proceed to subpoena bank accounts to see if the numbers add up, and proceed from there.
Successfully defending such cases usually requires a forensic accountant to review the documents.
If you are aware that you are being investigated or have been charged, you will need an attorney.
The types of fraud typically charged are:
1) Bank Fraud- Check kites, embezzlement, false loans, counterfeit or stolen checks;
2) Credit Card Fraud;
3) Counterfeit Currency;
4) Food Stamp Fraud;
5) Money Laundering;
6) Immigration and Passport Fraud.
Healthcare and Government Fraud
1) Healthcare fraud matters involving false billing that impact private insurers and government insurers such as Medicare and Medicaid;
2) Fraud committed against government agencies by suppliers of materials or other contracts;
In healthcare fraud cases, the following statutes are implicated:
18 U.S.C. § 1343 (Wire Fraud)
18 U.S.C. § 1347 (Health Care Fraud)
18 U.S.C. § 1349 and 18 U.S.C. § 371 (Attempt or conspiracy to commit health care fraud, and conspiracy to defraud the United States)
18 U.S.C. §§ 1957 (Money Laundering)
18 U.S.C. §§ 1956 (Money Laundering)
42 U.S.C. § 1320a-7b(b) (Health Care Kickbacks)
18 U.S.C. §§ 1518, 1519 (Obstruction)
18 U.S.C. § 669 (Theft or Embezzlement in Connection with Health Care)
42 U.S.C. § 1320d-6 (Unlawful Use of Health Information)
18 U.S.C. § 1028A (Aggravated Identity Theft)
18 U.S.C. § 1028(a)(7) (Use of Identification Information)
18 U.S.C. § 1028(a)(7) (Use of Identification Information)
U.S.C. § 1035 (False Statements Relating to Health Care Matters)
Wire Fraud Title 18 USC §1343
Wire Fraud is a charge the central charge to most white collar prosecutions, regardless of whether they are private, healthcare, or government fraud cases.
The elements of wire fraud under Section 1343 directly parallel those of the mail fraud statute, but require the use of an interstate telephone call or electronic communication made in furtherance of the scheme. United States v. Briscoe, 65 F.3d 576, 583 (7th Cir. 1995) (citing United States v. Ames Sintering Co., 927 F.2d 232, 234 (6th Cir. 1990) (per curiam)); United States v. Frey, 42 F.3d 795, 797 (3d Cir. 1994) (wire fraud is identical to mail fraud statute except that it speaks of communications transmitted by wire); see also, e.g., United States v. Profit, 49 F.3d 404, 406 n. 1 (8th Cir.)
The four essential elements of the crime of wire fraud are:
(1) that the defendant voluntarily and intentionally devised or participated in a scheme to defraud another out of money;
(2) that the defendant did so with the intent to defraud;
(3) that it was reasonably foreseeable that interstate wire communications would be used; and
(4) that interstate wire communications were in fact used.
The maximum penalty for wire fraud is a fine of not more than $1,000,000 or imprisoned for not more than 30 years, or both.
Federal Employee Salary Supplementation; Title 18 USC §209
This statute prohibits employees of the US government from being paid by someone other than the US government for doing their official duties.
The penalty for violating this statute shall not be imprisoned for more than one year.
Theft or Bribery Concerning Programs receiving Federal Funds; Title 18 USC §666
Congress enacted 18 U.S.C. § 666 to protect the integrity of the vast sums of money distributed through Federal programs. Section 666 is designed to facilitate the prosecution of persons who steal money or otherwise divert property or services from state and local governments or private organizations that receive large amounts of Federal funds.
In order to establish a violation of 18 U.S.C. § 666(a)(1)(A) the United States must establish that the illegally obtained property had a value of $5,000 or more.
A question related to value is whether individual thefts of property of less than $5,000 in value may be aggregated to constitute a single offense of theft of property in excess of $5,000 in value. Again, the statute and its legislative history provide no guidance.
When multiple conversions are part of a single scheme, the government may aggregate. United States v. Sanderson, 966 F.2d 184 (6th Cir. 1992). See also United States v. Webb, 691 F. Supp. 1164 (N.D. Ill. 1988). The Sixth Circuit, however, has held that aggregation is proper only if the $5,000 theft or conversion occurred within the same one-year time period required under 18 U.S.C. § 666(b). United States v. Valentine, 63 F.3d 459 (6th Cir. 1995).
Therefore, even if there is not one individual check that is more than $5,000, the government can add all the checks up to make out this charge.
Under this statute, a defendant can be fined or imprisoned for not more than 10 years, or both.
Money Laundering
Generally, money laundering is the process of making illegally-obtained money appear legal. The process is 1) placement; 2) layering; and 3) integration of the money. How this process is specifically implemented varies from case-to-case.
Title 18 USC §1956
Section 1956(a) defines three types of criminal conduct: domestic money laundering transactions (§ 1956(a)(1)); international money laundering transactions (§ 1956(a)(2)); and undercover "sting" money laundering transactions (§ 1956(a)(3)).
(a)
(1) Whoever, knowing that the property involved in a financial transaction represents the proceeds of some form of unlawful activity, conducts or attempts to conduct such a financial transaction which in fact involves the proceeds of specified unlawful activity—
(A)
(i) with the intent to promote the carrying on of specified unlawful activity; or
(ii) with intent to engage in conduct constituting a violation of section 7201 or 7206 of the Internal Revenue Code of 1986; or
(B) knowing that the transaction is designed in whole or in part—
(i) to conceal or disguise the nature, the location, the source, the ownership, or the control of the proceeds of specified unlawful activity; or
(ii) to avoid a transaction reporting requirement under State or Federal law,
shall be sentenced to a fine of not more than $500,000 or twice the value of the property involved in the transaction, whichever is greater, or imprisonment for not more than twenty years, or both. For purposes of this paragraph, a financial transaction shall be considered to be one involving the proceeds of specified unlawful activity if it is part of a set of parallel or dependent transactions, any one of which involves the proceeds of specified unlawful activity, and all of which are part of a single plan or arrangement.
(2) Whoever transports, transmits, or transfers, or attempts to transport, transmit, or transfer a monetary instrument or funds from a place in the United States to or through a place outside the United States or to a place in the United States from or through a place outside the United States—
(A) with the intent to promote the carrying on of specified unlawful activity; or
(B) knowing that the monetary instrument or funds involved in the transportation, transmission, or transfer represent the proceeds of some form of unlawful activity and knowing that such transportation, transmission, or transfer is designed in whole or in part—
(i) to conceal or disguise the nature, the location, the source, the ownership, or the control of the proceeds of specified unlawful activity; or
(ii) to avoid a transaction reporting requirement under State or Federal law, shall be sentenced to a fine of not more than $500,000 or twice the value of the monetary instrument or funds involved in the transportation, transmission, or transfer, whichever is greater, or imprisonment for not more than twenty years, or both. For the purpose of the offense described in subparagraph (B), the defendant’s knowledge may be established by proof that a law enforcement officer represented the matter specified in subparagraph (B) as true, and the defendant’s subsequent statements or actions indicate that the defendant believed such representations to be true.
(3) Whoever, with the intent—
(A) to promote the carrying on of specified unlawful activity;
(B) to conceal or disguise the nature, location, source, ownership, or control of property believed to be the proceeds of specified unlawful activity; or
(C) to avoid a transaction reporting requirement under State or Federal law, conducts or attempts to conduct a financial transaction involving property represented to be the proceeds of specified unlawful activity, or property used to conduct or facilitate specified unlawful activity, shall be fined under this title or imprisoned for not more than 20 years, or both. For purposes of this paragraph and paragraph (2), the term “represented” means any representation made by a law enforcement officer or by another person at the direction of, or with the approval of, a Federal official authorized to investigate or prosecute violations of this section.