White Collar Crimes

White collar crimes are non-violent criminal offenses committed for financial gain, typically involving fraud, deceit, breach of trust, or manipulation of financial systems. These charges include embezzlement, securities fraud, tax evasion, money laundering, insurance fraud, healthcare fraud, identity theft, mortgage fraud, and numerous other offenses involving deceptive business practices or financial misconduct. Unlike street crimes involving violence or property destruction, white collar crimes involve alleged theft or fraud accomplished through sophistication, manipulation of complex financial systems, and abuse of positions of trust. California prosecutes white collar crimes under various Penal Code sections, with many offenses also prosecutable in federal court where sentences are significantly harsher and mandatory minimums apply.

These charges are prosecuted aggressively because governments view white collar crime as threatening economic systems, undermining public trust in financial institutions, and causing widespread harm to victims. Federal agencies including the FBI, IRS, SEC, and DOJ dedicate enormous resources to investigating financial crimes, often conducting multi-year investigations involving wiretaps, subpoenas, forensic accounting, and cooperating witnesses. State district attorneys have specialized white collar crime units that work with regulatory agencies and civil enforcement authorities. The political reality is that high-profile white collar prosecutions generate publicity for prosecutors, and post-2008 financial crisis there’s intense pressure to appear tough on financial crimes. Even when losses are minimal or conduct is borderline, prosecutors often charge defendants to the maximum extent possible.

Common circumstances leading to white collar crime charges include business disputes that escalate into criminal investigations when one party files complaints with authorities, accounting errors or poor record-keeping that prosecutors characterize as intentional fraud, regulatory violations that become criminal cases, legitimate business transactions that investigators misinterpret as fraudulent, situations where employees are scapegoated for systemic company problems, civil disputes where victims file criminal complaints seeking leverage, tax positions that the IRS characterizes as evasion rather than avoidance, and complex financial transactions that appear suspicious to investigators unfamiliar with the industry. We’ve represented business owners accused of embezzlement based on accounting disputes, professionals charged with fraud for transactions they believed were legitimate, defendants who inherited cases when cooperating witnesses implicated them, and clients whose businesses were destroyed by investigations that ultimately revealed no criminal conduct.

Types of White Collar Crime Charges We Defend

We handle all white collar crime charges in San Luis Obispo, Santa Maria, and Lompoc:

Fraud-Related Offenses

• Grand Theft by False Pretenses (PC 532) – Obtaining property worth $950+ through intentional misrepresentation, requiring proof you made false statements intending to defraud and victims relied on those statements, charged as felony carrying 16 months to 3 years prison, with restitution often totaling hundreds of thousands.
• Securities Fraud (Corp Code 25541) – Making false or misleading statements to investors, failing to disclose material information, or manipulating securities prices, prosecuted by California Department of Business Oversight or federally by SEC, carrying 2-5 years state prison or 5-20 years federal prison.
• Investment Fraud / Ponzi Schemes – Operating fraudulent investment schemes where returns to earlier investors are paid using newer investors’ money rather than legitimate profits, typically charged as theft by false pretenses or wire fraud, with federal charges carrying 20+ years when losses exceed $1 million.
• Insurance Fraud (PC 548-551) – Making false or fraudulent insurance claims including automobile, property, healthcare, or disability insurance fraud, charged as misdemeanor (under $950 in value) or felony (over $950), carrying up to 5 years prison for aggravated cases.
• Healthcare Fraud (PC 550) – Submitting false claims to Medicare, Medicaid, or private insurance for services not provided or medically unnecessary, prosecuted by state Medi-Cal Fraud Unit or federally under False Claims Act, carrying civil penalties plus criminal sentences up to 10 years federal prison.

Embezzlement and Misappropriation

• Embezzlement (PC 503/504) – Fraudulent appropriation of property entrusted to you, commonly charged against employees accused of taking employer funds, financial advisors alleged to have misused client accounts, or trustees misappropriating trust assets, carrying 16 months to 3 years when amounts exceed $950.
• Embezzlement by Public Officer (PC 424) – Public officials or government employees who allegedly misappropriate public funds entrusted to them, carrying enhanced penalties of 2-4 years prison due to breach of public trust.
• Misappropriation by Fiduciary (PC 506, Probate Code provisions) – Trustees, executors, conservators, or guardians who allegedly misuse funds they were legally obligated to manage for beneficiaries, often arising in probate disputes where accounting is contested.
• Embezzlement from Elder (PC 368) – Taking or appropriating property from persons 65 or older through fraud, undue influence, or breach of fiduciary duty, carrying enhanced penalties including additional prison time and mandatory restitution.

Tax Crimes

• Tax Evasion (Revenue & Taxation Code 19706, 26 USC 7201) – Willfully attempting to evade or defeat taxes through underreporting income, inflating deductions, hiding assets, or maintaining false records, prosecuted by California Franchise Tax Board or IRS, carrying up to 5 years federal prison plus fines and back taxes.
• Filing False Tax Returns (26 USC 7206) – Knowingly filing tax returns containing false information regarding income, deductions, or credits, charged as federal felony carrying up to 3 years prison per false return filed.
• Failure to File Tax Returns (26 USC 7203) – Willfully failing to file required tax returns, charged as federal misdemeanor carrying up to 1 year prison per year not filed, though often prosecuted alongside evasion charges.
• Employment Tax Fraud – Failing to withhold and remit employee payroll taxes, converting trust fund taxes to business use, or filing false employment tax returns, prosecuted aggressively by IRS with criminal charges and civil penalties potentially bankrupting businesses.

Identity Theft and Fraud

• Identity Theft (PC 530.5) – Using another person’s identifying information without permission to obtain credit, goods, services, or employment, charged as misdemeanor (up to 1 year jail) or felony (16 months to 3 years prison) depending on amount obtained and number of victims.
• Credit Card Fraud (PC 484e-484j) – Using stolen, forged, or fraudulently obtained credit cards, or using legitimate cards knowing they’re revoked or lack sufficient funds, charged as misdemeanor or felony depending on number of transactions and total amounts.
• Check Fraud (PC 476) – Making, passing, or possessing forged or fraudulent checks with intent to defraud, including check kiting schemes, NSF check schemes, or altered check amounts, carrying 16 months to 3 years prison when amounts exceed $950.

Money Laundering and Financial Crimes

• Money Laundering (PC 186.10, 18 USC 1956) – Conducting financial transactions designed to conceal the source, ownership, or destination of funds derived from criminal activity, prosecuted by state or federal authorities, carrying up to 4 years state prison or 20 years federal prison.
• Structuring Transactions (31 USC 5324) – Breaking up large cash transactions into smaller amounts to avoid bank reporting requirements, charged federally as “smurfing” even when underlying funds are legitimate, carrying up to 5 years federal prison.
• Bank Fraud (18 USC 1344) – Executing schemes to defraud financial institutions or obtain money through false pretenses from banks, charged federally carrying up to 30 years prison when losses exceed $1 million.

Mortgage and Real Estate Fraud

• Mortgage Fraud (PC 532f) – Making false statements on loan applications, inflating property values, forging documents, or engaging in foreclosure rescue schemes, prosecuted by state Attorney General’s Real Estate Fraud Unit or federally by FBI, carrying 2-5 years state prison or 30 years federal prison.
• Foreclosure Fraud – Deceptive practices targeting homeowners facing foreclosure including advance fee schemes, rent-to-own scams, or phantom rescue operations, carrying enhanced penalties when targeting vulnerable homeowners.
• Real Estate License Fraud – Real estate professionals engaging in fraud including dual agency violations, kickback schemes, or misappropriation of earnest money deposits, resulting in license revocation plus criminal charges.

Corporate and Business Crimes

• Wire Fraud (18 USC 1343) – Using interstate wires (email, phone, internet) to execute schemes to defraud, the most commonly charged federal white collar crime, carrying up to 20 years prison, 30 years when fraud affects financial institutions.
• Mail Fraud (18 USC 1341) – Using U.S. mail to execute schemes to defraud, often charged alongside wire fraud in federal prosecutions, carrying identical penalties up to 20-30 years prison.
• RICO Violations (18 USC 1961-1968) – Racketeer Influenced and Corrupt Organizations Act charges alleging pattern of racketeering activity through legitimate businesses, carrying up to 20 years per count plus asset forfeiture.
• Antitrust Violations (Sherman Act, Clayton Act) – Price fixing, bid rigging, market allocation, or monopolistic practices, prosecuted by Department of Justice Antitrust Division, carrying up to 10 years federal prison for individuals.

Additional White Collar Offenses

• Forgery (PC 470) – Creating, altering, or using false documents including checks, identification, contracts, or financial instruments, charged as misdemeanor (up to 1 year jail) or felony (16 months to 3 years prison) depending on amount and circumstances.
• Bribery (PC 67-68, 18 USC 201) – Offering or receiving bribes to influence official actions, charged against both public officials and private parties, carrying 2-4 years state prison or up to 15 years federal prison.
• Insider Trading (15 USC 78j, SEC Rule 10b-5) – Trading securities based on material non-public information, prosecuted civilly by SEC and criminally by DOJ, carrying up to 20 years federal prison plus disgorgement of profits.
• Perjury (PC 118) – Lying under oath in legal proceedings, often charged in white collar cases when defendants testify at grand juries or trials, carrying 2-4 years prison and used to pressure cooperation.

This list represents white collar crimes we defend, but we handle all financial crime allegations. If you’re facing charges not listed here, or you’re unsure what you’ve been charged with, we can help. White collar cases involve complex financial evidence, forensic accounting, and legal theories requiring specialized expertise.

Call us at (805) 621-7181 for a confidential consultation about your case.

Consequences of White Collar Crime Convictions

White collar crime convictions result in devastating personal and professional consequences:

• Federal prison sentences – Wire fraud, mail fraud, bank fraud: 20-30 years; Tax evasion: 5 years per count; Money laundering: 20 years; Securities fraud: 20 years; Healthcare fraud: 10 years; with federal sentences served at 85% minimum and no parole
• State prison sentences – Grand theft by false pretenses: 16 months to 3 years; Embezzlement: 16 months to 3 years; Insurance fraud: up to 5 years; with sentences often consecutive when multiple victims involved, resulting in decades of cumulative prison time
• Massive restitution – Court-ordered repayment of all victims’ losses, which in white collar cases often total hundreds of thousands or millions of dollars, with restitution enforceable for decades and surviving bankruptcy, wage garnishments continuing long after prison release
• Fines and forfeitures – Federal fines up to $250,000 per count or twice the gain/loss amount, whichever is greater; criminal forfeiture of assets derived from or used in criminal activity; civil forfeiture allowing government seizure of property without criminal conviction
• Professional license revocation – Automatic loss of licenses for CPAs, attorneys, financial advisors, insurance agents, real estate brokers, securities dealers, and virtually all professionals, with lifetime bars to reentry in many regulated industries
• Supervised release – Federal cases result in 1-5 years supervised release after prison, with conditions including financial disclosure, restrictions on employment, prohibition from financial management positions, and intensive monitoring
• Employment destruction – White collar convictions make employment in finance, accounting, banking, insurance, real estate, and most professional fields impossible due to background checks, bonding requirements, and industry regulations
• Immigration deportation – Fraud offenses involving loss over $10,000 are aggravated felonies resulting in mandatory deportation with no relief available, and crimes of moral turpitude affect all immigration status including naturalization
• Civil liability – Criminal convictions create presumptions in civil lawsuits, exposing defendants to treble damages, attorney’s fees, and punitive damages in securities, consumer fraud, and False Claims Act cases
• Reputation destruction – White collar prosecutions are public, reported by media, searchable online, and permanently destroy reputations in business communities, social circles, and professional networks
• Bar from government contracting – Federal debarment from government contracts and grants, affecting businesses and individuals convicted of fraud against government agencies, effectively ending many business relationships
• Permanent criminal record that cannot be expunged or sealed for most white collar felonies, appearing on all background checks, credit reports, and professional licensing applications for life

Federal vs. State White Collar Prosecutions

Understanding which system will prosecute your case:

State Prosecutions

California prosecutes white collar crimes through district attorney offices and state agencies including the Attorney General, Franchise Tax Board, Department of Insurance, and Department of Business Oversight. State cases typically involve:

• Thefts and frauds under $100,000
• Local embezzlement and business fraud
• State tax violations
• Insurance fraud not involving federal programs
• Consumer fraud and elder financial abuse

State sentences are generally lighter (16 months to 5 years typical), and California offers more plea negotiation flexibility than federal system.

Federal Prosecutions

Federal authorities prosecute white collar crimes through U.S. Attorney’s Offices working with FBI, IRS-CI (Criminal Investigation), SEC, Postal Inspection Service, and other federal agencies. Federal prosecution occurs when crimes involve:

• Interstate commerce (most fraud using phones, email, internet)
• Federal program fraud (Medicare, Medicaid, government contracts)
• Financial institution fraud (banks, credit unions, FDIC-insured)
• Securities fraud (SEC-regulated markets)
• Tax evasion (IRS federal taxes)
• Amounts exceeding $100,000
• Multiple victims across states
• Complex schemes or organized criminal activity

Federal sentences are dramatically harsher due to mandatory minimums, sentencing guidelines, and strict enhancements. Federal investigations are more thorough, involve sophisticated forensic accounting, and often take years before charges are filed. Federal conviction rates exceed 90% due to enormous resource advantages over defendants.

Understanding whether your case is federal or state is critical to evaluating potential outcomes and developing defense strategies.

Why You Need an Attorney for White Collar Charges

These Cases Require Technical Expertise

White collar prosecutions involve complex financial evidence including bank records, accounting documents, tax returns, financial statements, wire transfers, and forensic analysis. Prosecutors hire forensic accountants who trace funds, analyze business records, and create summaries making circumstantial evidence appear overwhelming. Without attorneys who understand financial documentation, accounting principles, and how to challenge forensic analysis, defendants are at enormous disadvantages. We work with defense forensic experts, understand complex financial transactions, and know how to challenge prosecution accounting theories that mischaracterize legitimate business practices as criminal fraud.

Intent and Knowledge Are Central Defenses

White collar prosecutions require proving fraudulent intent—that you knowingly and intentionally engaged in fraud or deception. Many white collar cases are defensible because intent is absent, unclear, or subject to innocent explanations. Did you believe your conduct was lawful? Were you following professional advice? Did you make mistakes rather than commit crimes? Were you acting on information you believed was accurate? We present evidence of good faith belief, reliance on professional advice, lack of criminal intent, and alternative explanations showing mistakes or negligence rather than intentional fraud.

Early Intervention Can Prevent Charges

Unlike most criminal cases where arrests precede charges, white collar investigations often proceed for months or years before charges are filed. Learning you’re under investigation through grand jury subpoenas, search warrants, or agent interviews provides opportunities for early intervention. Experienced attorneys can negotiate with prosecutors, present exculpatory evidence, explain misunderstandings, and potentially prevent charges from being filed. We’ve prevented federal prosecutions by presenting evidence prosecutors lacked, negotiated civil resolutions avoiding criminal charges, and shaped investigations favorably through strategic cooperation.

Experience Matters

We’ve defended white collar cases in state and federal courts for over 15 years. We know federal prosecutors in the Central District of California, their approaches to plea negotiations, and which cases they’re willing to resolve short of trial. We know state prosecutors in San Luis Obispo, Santa Maria, and Lompoc who handle financial crimes. We understand forensic accounting, tax law, securities regulations, and complex financial instruments. We know how to present white collar defenses to juries who may not understand financial complexity. That experience informs strategy from initial investigation through trial or sentencing.

How Central Coast Criminal Defense Can Help

Helping clients in San Luis Obispo, Santa Maria, and Lompoc defend against white collar crime charges since 2010, we provide:

• Immediate Investigation Response – We respond to grand jury subpoenas, search warrants, and federal agent interviews immediately, advise on assertion of Fifth Amendment rights during investigations, conduct internal investigations to understand potential exposure, and strategize about cooperation, proffer agreements, or assertion of rights.
• Forensic Analysis and Expert Coordination – We retain forensic accountants who challenge prosecution financial analysis, obtain tax experts who explain legitimate tax positions versus evasion, work with industry experts who testify about standard business practices, and coordinate with professionals who rebut government expert testimony.
• Intent and Knowledge Defenses – We demonstrate good faith belief that conduct was lawful, present evidence of reliance on accountants, attorneys, or other professional advice, establish lack of knowledge of false information or fraudulent schemes, show that errors were negligent or inadvertent rather than intentional, and develop alternative explanations for transactions prosecutors characterize as fraudulent.
• Strategic Negotiation – We negotiate with federal and state prosecutors to reduce charges or secure favorable plea agreements, present mitigating circumstances including cooperation, restitution ability, and lack of criminal history, explore deferred prosecution agreements or non-prosecution agreements when applicable, and pursue civil resolutions avoiding criminal prosecution when possible.
• Confidential, Sophisticated Representation – You work directly with attorneys who understand business, finance, and professional practices, maintain strict confidentiality in sensitive matters affecting reputations and businesses, and provide representation that’s sophisticated, discreet, and tailored to white collar cases.

We understand that people facing white collar charges are often professionals, business owners, and educated individuals who have never faced criminal allegations. We’ve represented CPAs accused of tax fraud, financial advisors charged with embezzlement, business owners accused of fraud in legitimate transactions, executives charged in cases where employees committed fraud, and professionals whose conduct was mischaracterized as criminal when it was negligent or mistaken.

Our approach focuses on understanding the complete financial picture and presenting it accurately. What actually happened versus what prosecutors allege? Were your actions intentional fraud or honest mistakes? Did you have good faith belief your conduct was lawful? Were you following professional advice? Is there forensic evidence contradicting the prosecution’s theories? We investigate thoroughly, challenge prosecution accounting theories, and present defenses that demonstrate lack of criminal intent.

White collar charges can be defended. We’ve secured dismissals, won acquittals, negotiated significant charge reductions, and achieved outcomes avoiding prison sentences and preserving professional licenses. Whether you’re facing embezzlement, fraud, tax charges, or other financial crime allegations, whether you’re under investigation or already charged, we’re here to provide the sophisticated defense white collar cases require.

Don’t Wait—Call Us Today

White collar investigations require immediate attention, particularly when you receive grand jury subpoenas, search warrants are executed, or federal agents request interviews. Early representation can prevent charges from being filed, preserve evidence, and position your case favorably.

We’ll review the investigation or charges, explain potential outcomes, discuss defenses including intent and good faith belief, and develop a comprehensive strategy to protect your freedom, your career, and your reputation.

Your career, your reputation, your freedom—all three are at stake. Let us provide the defense you need.