| The term "white collar crime" describes a variety of | | | | You may wonder why you or your company may be |
| conduct. The term was first used by Edwin Sutherland | | | | charged with wire or mail fraud for conduct that is |
| when he addressed the American Sociological Society | | | | more specifically addressed in other statutes. |
| in 1939. Dr. Sutherland presented the position that | | | | Especially in light of the fact that in today's |
| corruption among affluent business and government | | | | marketplace, businesses of all types are highly |
| officials caused as much harm to society as what is | | | | regulated. Perhaps it was explained best in a Second |
| commonly referred to as "street" or "blue collar" crime. | | | | Circuit case from New York: "To federal prosecutors |
| Thus, society should take action to identify and punish | | | | of white collar crime, the mail fraud statute is our |
| individuals involved in such conduct. | | | | Stradivarius, our Colt 45, our Louisville Slugger, our |
| Perhaps "white collar crime" is best defined as | | | | Cuisinart--and our true love. We may flirt with RICO, |
| property crimes associated with business that do not | | | | show off with 10b-5, and call the conspiracy law |
| result in physical injury to any person. This broad | | | | 'darling,' but we always come home to the virtues of 18 |
| definition can apply to complex investment schemes | | | | U.S.C. y 1341, with its simplicity, adaptability, and |
| such as those publicized in the Enron scandal, or insider | | | | comfortable familiarity." |
| trading allegations such as those brought against | | | | United States v. Pisani, 773 F.2d 397, 409 (2nd Cir. |
| Martha Stewart. The definition can also apply to more | | | | 1985) (citing Rakoff, The Federal Mail Fraud Statute |
| direct criminal activity such as telemarketing schemes, | | | | (Part 1), 18 Duq.L.Rev. 771, 771 (1980)) (footnotes |
| Internet fraud, and embezzlement. | | | | omitted). |
| Some examples of "white collar crimes" are: access | | | | In other words, due to the simplicity of the wire and |
| device fraud, bank fraud, blackmail, bribery, cellular | | | | mail fraud statutes and because of the fact that |
| phone fraud, computer/Internet fraud, counterfeiting | | | | oftentimes prosecutors are unable to identify violations |
| and forgery (not only currency but also certificates, | | | | of more specific statutes, the prosecutors simply rely |
| documents of authenticity, licensing documents, identity, | | | | on their "sweetheart" statutes, Mail or Wire Fraud. The |
| contractual agreements, etc.), credit card fraud, futures | | | | prosecutors twist the facts in an attempt to satisfy the |
| speculation schemes, copyright infringements, | | | | elements of the Mail or Wire Fraud statutes. |
| embezzlement, environmental regulation violations, | | | | If you have been charged with Mail or Wire Fraud, or |
| extortion, fraud involving the health care industry, insider | | | | conspiracy to commit mail or wire fraud (which carries |
| trading, insurance fraud, investment schemes, money | | | | the same penalty as Mail or Wire Fraud), you are |
| laundering, securities fraud, tax fraud and evasion, | | | | facing very serious charges. The author HIGHLY |
| telemarketing schemes, fraud involving illegal attainment | | | | recommends that you obtain COMPETENT legal |
| of government services or benefits, bait and switch | | | | counsel IMMEDIATELY. If you anticipate that you may |
| schemes, price fixing, false advertising, improper | | | | face Mail or Fraud charges, or conspiracy to commit |
| weights and measures for marketable goods, etc. This | | | | Mail or Wire Fraud charges, the author recommends |
| is by no means an exhaustive list of all of the conduct | | | | that you obtain COMPETENT legal counsel AS SOON |
| that could be characterized as "white collar crime. | | | | AS POSSIBLE. If you are aware that you or your |
| Often, subjects of investigations of "white collar | | | | company is being investigated as a result of your |
| crimes" are accused of committing wire or mail fraud, | | | | business activities, the author recommends that you |
| obstruction of justice, or for making false statements | | | | obtain COMPETENT legal counsel AS SOON AS |
| to federal investigators. Wire and mail fraud | | | | POSSIBLE. |
| prosecutions are very common in the arena of "white | | | | Competent legal counsel is very important from the |
| collar crime." The difference between wire or mail | | | | moment that you realize you may be the subject of |
| fraud is that with wire fraud, the defendant used the | | | | an investigation for any conduct that may constitute |
| "wires" (i.e., phones, fax, radio, etc.) to further the | | | | "white collar crime." Often, legitimate business people |
| scheme to defraud, whereas with mail fraud, the | | | | find themselves prosecuted for unintentionally making |
| defendant uses the United States Postal Service. See | | | | false statements to investigators (just ask Martha |
| 18 U.S.C. yy 1341, 1343. The wire and mail fraud | | | | Stewart), or for other unintentional actions that can be |
| charges are very serious charges. The two carry a | | | | construed as an attempt to obstruct justice. The risk |
| statutory maximum penalty of twenty (20) years | | | | of such prosecution necessitates the acquisition of |
| imprisonment! | | | | legal counsel as soon as possible. |