Federal White-Collar Criminal Charges: What You Need to Know

This article covers the concerns and questions white-collar criminal suspects have when facing federal criminal charges and possibly prison.

Facing White Collar Criminal Charges

Getting Your Questions Answered

Should you be a criminal  target of a federal white-collar investigation, you will likely have many concerns and questions, such as:

• How does federal law enforcement investigate white-collar crimes?

• How long does the judicial process take?

• How can the federal defense lawyer help me reduce the charges against me?

• If convicted, when do I become eligible for parole?

• What are the ways that I can shorten my sentence?

• What type of prison will I be sent and will I have to leave the state to serve my time?

• The types of penalties do I face if I am convicted of a white-collar crime?

How long can it take to get to trial?

Typically, no. Concerning criminal matters, in the vast majority of federal jurisdictions, the process is reasonably efficient.

 If the defendant does not waive the constitutional time to a speedy trial, cases proceed to go in as few as 45 days. Even the most complex cases are tried within less than one year.

Are my phones being tapped?

Probably not. Wiretaps can be conducted only if authorized by a U.S. District judge. 

The process involved in getting a federal judge’s authorization to conduct a wiretap is very burdensome for prosecutors. Even more demanding is the process of monitoring a wiretap or listening to the conversations that take place.

Wiretapping is something that is done only infrequently and usually before indictment. 

Typically, it is safe to assume that your phones are not tapped after indictment. However, to play it safe, don’t say anything on the phone that you don’t want to hear someday in open court.

One precautionary measure is to consider using prepaid phones; they do not come with a contract and can easily be disposed of if you are concerned they may have become compromised.

 How long will I serve before I can be paroled?

Parole no longer exists in the federal correction system. On sentences longer than one year (one year and one day or more), federal inmates automatically earn a reduction of 54 days per year based on good behavior. If you stay out of trouble, your sentence is automatically reduced by 54 days per year.

For example, on a 2-year sentence, the reduction for good behavior would allow you to be released after serving only 20 months. 

Good time credit is given automatically based on good behavior. It can only be taken away from an inmate after disciplinary hearings that routinely follow any prison infractions.

Can prison overpopulation work in my favor?

Given the overpopulation of our prisons, the Bureau of Prisons allows nonviolent U.S. citizen inmates to serve the last 2 to 6 months of their sentence in a halfway house or home confinement.

An inmate in a halfway house or home confinement situation can seek or engage in employment during regular business hours but must remain at home or in the halfway house during evenings and weekends.

Typically, one would be allowed to leave the halfway house or home confinement for other necessary matters, including visits to doctors and dentists, grocery shopping, etc.

How can I get credit for good behavior in prison?

If you are sentenced to prison, you must stay out of trouble to get all your good time credit. Further, suppose you have a substance abuse problem. 

In that case, you must advise your lawyer of said problem and assist them in gathering any documentation supporting your claim of suffering from a substance abuse addiction.

Space is limited in the 500-hour comprehensive treatment program, and a recommendation from your sentencing judge that you participate in the program will help you gain admission to the program as soon as possible.

If your white-collar offense was partly due to substance abuse, the 500-hour program is an excellent opportunity for receiving treatment. Further, a 1-year reduction in the sentence should be most welcome.

If sentenced to prison will I have to leave the state?

You could serve your time just about anywhere in the United States, as there are federal facilities in most of the 48 contiguous states. Some states, like Texas and California, have several federal facilities.

The Bureau of Prisons begins the designation process within a few days of sentencing. The Bureau determines the appropriate security level for the now-sentenced defendant as part of this process. 

Security levels in federal facilities are the following: super-maximum, maximum, medium, low, and camp.

Federal Sentencing Guidelines are non-binding rules that establish a uniform sentencing policy for defendants convicted of federal crimes. 

The Guidelines provide the federal criminal justice system with specific calibrations of sentences that depend on many factors.

Do white-collar offenders get lighter sentences? 

That depends. Under the statute, federal fraud cases typically carry the following sentencing ranges: 0-5 years, 0-10 years, and 0-30 years. Before enacting the Federal Sentencing Guidelines, regardless of the nature of a fraud scheme and the dollar amount involved, each defendant would face the entire statutory range.

The helpful news is that according to the U.S. Sentencing Commission, white-collar offenders represent a lower threat of becoming repeat offenders. 

Therefore they are less of a threat to the community. This factor and the absence of physical violence can make the white-collar offender more sympathetic, often leading to lighter sentences.

Generally speaking, white-collar crimes are not considered violent offenses. Violent offenders require much higher security classifications than nonviolent offenders. The difference is that the penalties can be substantially lessened in white-collar crimes if the white-collar defendant takes responsibility for the crime and makes restitution.

How can I get a lesser prison sentence?

In some instances, the Guideline Range can work to your advantage. Under the Guidelines, the court can narrow the sentencing range from 0-60 months to 18-24 months. The good part is that 24 months becomes the maximum the judge can impose.

Unfortunately, the judge will not usually impose a sentence below the bottom of the Guideline Range. So as a practical matter, many white-collar crime offenders who were good candidates for probation before enacting the Sentencing Guidelines now serve prison time.

Can I serve my time near my family?

Once the Bureau arrives at a security classification for a particular defendant, the Bureau will designate or assign that defendant to a facility based on the available space.

The Bureau does try to designate inmates to facilities as close to their homes as possible. However, security classification and space available are always the overriding factors.

If prison is a likely sentence for you, you must determine what geographical area of the country would be most convenient for you to serve your time. 

Next, you must sit down with your lawyer and discuss geographic considerations. Your lawyer can request that your sentencing judge recommend that you be incarcerated as close to your home city as possible.

If, for example, your elderly parents or young children plan to visit you frequently but cannot travel long distances due to age, health, or finances, the sentencing judge should be made aware of this.

Some federal judges in the United States refuse to make recommendations regarding the geographic location for incarceration; however, most judges will make such recommendations if the request is made correctly, especially if there is supporting documentation. You will need to discuss these issues with your lawyer before sentencing.

If convicted, will the government seize all my assets?

The federal government cannot seize any of your assets simply because you are convicted of a federal offense.

However, if the federal prosecutors can prove that a particular asset was purchased with the proceeds derived from criminal activity or was used to promote illegal activity, said assets could be ordered forfeited to the federal trust administration by the U.S. District Judge.

If your home or business has been raided and certain assets seized, please understand that forfeiture is not complete. The seizure is merely the first step in the forfeiture process. Even though your assets have been seized, you have the right to legally challenge the forfeiture.

How does the amount of restitution get calculated?

The sentencing judge is required by law to order restitution as a part of the sentence. For example, if you are convicted of participating in a bank fraud scheme that caused a $300,000 loss to a bank, you will be required to reimburse the bank for $300,000. If you are found to be the sole participant in the bank fraud scheme, you alone will be required to return the $300,000 to the bank.

If, for example, you are one of three participants, restitution will be joint and several. This means that all three defendants will be ordered to pay restitution; however, if one or more defendants cannot pay, the total amount of restitution could be required from the one defendant with the ability to pay.

Regarding the amount calculation, under Federal Sentencing Guidelines, the judge must do a Guideline calculation before imposing a sentence. 

The Guideline calculation considers the dollar amount involved in any fraud case, the nature of the defendant’s participation in the fraud, and the defendant’s criminal history.

Will restitution work in my favor in sentencing?

Restitution is a critical factor in the disposition of your sentence. Because prison looms as such a terrifying possibility, white-collar defendants often focus exclusively on having to serve prison time. 

This is why making restitution is a critical negotiating tool in obtaining a favorable plea bargain with the prosecutor.

Your objective should be determining whether you can pay restitution and the amount that will satisfy the court. 

If there is a disagreement between your side and the government regarding the right amount of restitution, this matter can be litigated separately at a sentencing hearing.

You must not become complacent and feel you will not be sentenced to prison simply because your offense is nonviolent. 

You must consider retaining an experienced federal crimes attorney as soon as possible to discuss possible Sentencing Guideline calculations with your federal crimes attorney.

Consult With A Federal Crimes Attorney

If you have questions, we recommend setting up a personal consultation with a federal crimes attorney.