White Collar Crimes

Some examples of common white collar criminal offenses in Minnesota are

• Intellectual property theft

• Money laundering

• Tax evasion

• Fraud

• Bribery

• Embezzlement

• Insider trading

• Public corruption

• Environmental crimes

Intellectual Property Theft

Theft is not confined to physical objects. It is unlawful to take and distribute creative expressions, inventions, and ideas for financial gain without the consent of the proprietary owner. Due to the rapid growth of digital file technology and the internet, intellectual property theft has become a target for state and federal prosecution. According to the FBI, piracy costs American business organizations billions each year. It also deprives the country as a whole of tax dollars, and likewise the state of Minnesota. 

Activities involving intellectual property theft include

• Copyright infringement

• Trade secrets theft

• Trademark counterfeiting

• Internet piracy

• Distributing counterfeit prescription drugs

• Recording movies that play in theaters

• Pre-release copyright infringement

Money Laundering

Money laundering refers to any activity disguising money that is obtained illegally and making it seem to have originated from a legal source. For example, a drug ring could launder its proceeds through a pawn shop. It is mostly the federal government that charges out this offense.

A major law that highlights money laundering in the United States is the 1986 Money Laundering Control Act. According to this law, the government can convict an individual of money laundering regardless of the amount of money disguised, even if it is just $1. Because the offense of money laundering is strongly associated with international terrorism and organized crime, it may have extreme penalties.

Tax Evasion

In addition to the legal ways to avoid taxes, such as contributing to a pre-tax retirement account, there are numerous ways to commit illegal tax evasion. The principal national agency that investigates tax evasion is the Internal Revenue Service. In Minnesota, the Department of Revenue handles reports of tax evasion. 

Often, government investigators discover potential schemes of tax evasion through civil audits. But in some instances, ex-spouses or disgruntled employees may inform the IRS of illegal avoidance. Unfortunately, the complexity of our tax code has led to false accusations. Confusion can look like deliberate deception. 

Some examples of tax evasion schemes are 

• Using a company’s money for personal expenses, such as vacations, housing, or education

• A business owner deducting taxes from employees but using it as capital rather than remitting it to the IRS

• Using a sham trust to hide taxable assets

Fraud

Fraud is an act of deception with an intention to obtain something (often money) from the victim. Specific types of fraud include welfare, securities, health care, credit card, bank, mortgage, and mail. In some situations, victims of fraud may institute civil suits against the alleged perpetrator to obtain compensation.

Although fraud can stand alone as a crime, most white collar criminal offenses encompass an element of fraud. For instance, to convict someone of identity theft, the prosecution must prove that you engaged in fraudulent activity.

Bribery

The government can charge you with bribery if you give or receive something (an item, a service, or money) in exchange for a particular favor or to dissuade an individual from a decision or opinion. There are various targets of bribery, such as public officials, witnesses, financial institutions, and sports officials. 

In Minnesota, Statute 609.42 covers bribery. An example of federal law criminalizing bribery is the U.S. Foreign Corrupt Practices Act, which covers business bribery between American corporations and foreign officials. Another example is the Bank Bribery Amendments Act, where a banking official who receives a bribe can be punished by a fine three times the value of the bribe, or a maximum of thirty years in prison. 

Embezzlement

Embezzlement occurs when a person entrusted with assets or funds deliberately mismanages them or uses them for his or her own benefit. Often, this offense happens within companies or governmental organizations. The perpetrator may change figures in accounting documents to conceal the embezzlement. For instance, a bank teller may steal funds from a bank, or a store bookkeeper may divert cash or other funds for personal use.

To achieve a conviction for embezzlement, the prosecutor must prove that you had responsibility for the money or assets, you embezzled them, and you acted intentionally and contrary to the interests of the rightful owner. Although these elements may seem straightforward, they are sometimes quite challenging to prove. An experienced criminal defense attorney may be able to discret one or more of these elements. 

Insider Trading

Not all insider trading is illegal. Corporate insiders (employees, shareholders, directors) may sell and buy shares within a company. These people must report their trade activities to the U.S. Securities and Exchange Commission (SEC).

But if someone uses non-public information to trade securities and violates a work-related duty in the process, this is illegal insider trading. Offenders may face two parallel cases: one filed by a United States attorney’s office and the other filed by the SEC. Regardless of who in the government is investigating you, declining to answer questions outside the presence of a defense attorney is crucial. 

Public Corruption

The scope of a public corruption matter is often broad and can cover several alleged illegal acts. However, individual examples of this category in Minnesota law are unauthorized pay for a public officer (a misdemeanor) and corruptly influencing a legislator (a felony). In addition to criminal penalties, public corruption charges can ruin reputations and careers. Some governmental agencies have a specialized focus on public corruption, such as the Public Integrity Unit of the U.S. Department of Justice.

Environmental Crimes

Federal agencies often prosecute environmental crimes because they fall under federal laws like

• The Clean Water Act

• The Resource and Conservation Act

• The Clean Air Act

• The Federal Insecticide, Fungicide, and Rodenticide Act

However, Minnesota has a lengthy statute outlining a variety of environmental crimes and their penalties. Some examples of environmental crimes are dumping of contaminated waste into water bodies, oil spills, destruction of wetlands, excessive seepage of emissions, unapproved septic systems, burning garbage, and cutting protected trees.