How White Collar Crimes Are Investigated and Prosecuted in California

When people think about the consequences of a criminal conviction, they tend to consider the penalties listed in statutes, namely, incarceration or a fine. What they often overlook—until later—is the reputational damage that results when allegations are not refuted swiftly and decisively.

Your reputation is extremely valuable, and being accused of a crime can put it at risk. The crimes that often cause the most harm in the long term are white collar crimes. Being charged with a white collar crime, such as embezzlement, fraud, insider trading, or money laundering, can make people see you as fundamentally dishonest. That label can interfere with your professional and personal life for years to come, so it is essential to act quickly to establish an effective defense and protect your good name.

White collar crimes are often investigated and prosecuted quite differently from other criminal offenses in California. Here are some features to be aware of if you are facing accusations of dishonest conduct. Even if formal charges have not yet been filed, you may need to move fast to establish your defense.

Overview of the Investigation of a White-Collar Crime

Unlike a violent crime such as assault, white collar crimes are not witnessed in public. They are noticed by someone within an organization, such as a bank. A company may have completed an audit revealing numbers that didn’t add up. Forensic accountants may begin analyzing years of records and tax information.

Much of the investigation can proceed quietly for months or even years without the target being aware that they are under scrutiny. An investigation may be undertaken by civil authorities or private companies until sufficient evidence is gathered to move toward prosecution.

At some point, the investigation may become more public. Authorities may seek search warrants and subpoenas to obtain access to phone records, digital devices, and records of electronic transactions and correspondence. A grand jury may be used to compel someone involved to testify or to obtain documents.

Sometimes, investigators exceed their authority or seize records without taking the right legal steps. In those situations, an experienced defense attorney can seek to have critical evidence suppressed, thereby weakening the prosecution’s case. But it is important to work with an attorney who is familiar with the various investigative processes involved in white collar cases.

Signs That You May Be Under Scrutiny

Often, individuals are blindsided by charges of white collar crimes. They failed to recognize the signs or the significance of what was happening around them. If you believe that you are being targeted or things just don’t seem right, it is a good idea to schedule a consultation with a white collar defense lawyer.

Sometimes the signs of scrutiny can be obvious. You might get a letter from the IRS, FBI, or SEC, for instance. Other times, the signs are more subtle. Someone might ask you to undergo a “routine interview.” Your office might hold an informal inquiry. If you learn that any of your colleagues or business partners are being subpoenaed to testify, that is a cause for concern that you should not ignore. Even if you know your actions have been above board, you could be set up as a scapegoat for others’ actions, and you need to be prepared to defend yourself.

Prosecution of White Collar Crimes

Certain white collar crimes tend to be prosecuted in federal court, while others are handled in California state court. It is wise to work with an attorney experienced in both venues.

By the time criminal charges are filed in cases of this type, prosecutors will have amassed enough evidence that they believe they can establish guilt beyond a reasonable doubt. It will be vital to present evidence and arguments to refute their assertions.

The person charged may appear at an arraignment in court where they are formally accused of the charge and enter a plea. An attorney may be able to appear on the defendant’s behalf in this type of case. If bail money is required, it may be necessary to prove that the funds were not obtained through unlawful activity. This may occur during arraignment or a separate court appearance.

Defending Against Accusations of White Collar Criminal Activity

The prosecution’s evidence is usually quite complex and detailed when the charges involve crimes such as fraud, insider trading, or embezzlement. It is important for the defense attorney to understand the evidence and to be prepared to counter it as early as possible. Early intervention could prevent formal charges from being filed.

As noted above, evidence may be suppressed if obtained unlawfully, such as if investigators acted without a proper warrant or exceeded its scope.

Strategic defense also requires a thorough understanding of statutory defenses and the nuances of the elements that must be proven to obtain a conviction. In many cases, prosecutors must prove knowledge and intent to commit a wrongful action, and that knowledge and intent (or both) simply do not exist. When an attorney can show that an act was committed due to negligence or misunderstanding, it can often lead to dismissal, reduced charges, or a substantial reduction in penalties.

The Right Legal Defense Makes All the Difference When Facing Accusations Involving White Collar Crimes

To successfully refute allegations of white collar criminal offenses, your defense attorney needs to be prepared to engage in an in-depth analysis of financial records and an understanding of the elements of these complex crimes. It is not a task every defense attorney is prepared to undertake successfully.

At Berkowitz Law, we understand how to defend against charges of white collar crimes in state and federal courts. We take a multi-faceted approach to dismantle the prosecution’s arguments while asserting affirmative defenses to support our client’s position of innocence. But it is best to begin defending yourself as soon as possible to protect your reputation. We invite you to schedule a confidential consultation today to learn more about the most effective defense options for your situation.