Can I Go to Jail for a White Collar Crime?

A skilled Texas criminal defense lawyer will tell you that white collar crimes often result in prison time. Nearly two-thirds of those convicted of federal fraud are sentenced to incarceration, according to the U.S. Sentencing Commission. These non-violent offenses are prosecuted just as aggressively as more traditional crimes.

The term “white collar” may sound less serious, but it simply refers to financial or deceptive conduct. Prosecutors at both the state and federal level devote significant resources to pursuing convictions in these cases.

Sentencing largely depends on the amount of money involved. The higher the alleged loss, the greater the potential penalty. Hiring experienced Frisco white collar crime lawyer early is critical. Delays or mistakes during the investigation can have lasting consequences.

If you are under investigation for a white collar offense, take the first step in your defense by calling Whalen Law Office at (214) 368-2560 for a confidential consultation.

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How Financial Loss Amount Determines White Collar Sentencing

In both state and federal court, the single most powerful factor determining the severity of a sentence for a white collar crime is the amount of money the government alleges was lost. A higher loss amount directly translates to a longer potential prison sentence.

A Texas criminal defense lawyer with experience in these cases knows that challenging the loss amount is a critical part of the defense.

How Federal Sentencing Guidelines Work

In federal court, judges use the U.S. Sentencing Guidelines to calculate a recommended sentence. While not strictly mandatory, judges must calculate this range and use it as the benchmark for their decision. The process is like building with blocks, where each factor adds more time to the potential sentence.

• Base Offense Level: Every crime starts with a base level. For most fraud crimes, this is a level 7.
• Specific Offense Characteristics (The Loss Table): The base level is then increased according to the loss amount. The increases are dramatic. A loss of more than $1.5 million adds 16 levels to the base offense level, which can add years to a sentence.
• Other Enhancements: Prosecutors will argue for additional enhancements that can further increase the sentence. These include factors like the number of victims, the use of sophisticated means to carry out the crime, or abusing a position of public or private trust.

A former prosecutor understands how the government argues for these enhancements and, more importantly, how to argue against them.

How Texas State Sentencing Works

The Texas state system is more direct but operates on the same principle: more money means a more serious charge. The Texas Penal Code groups theft and fraud offenses into specific value brackets.

Under Texas Penal Code § 31.03, the penalties for theft, which can include embezzlement or obtaining property by deception, are graded as follows:

• $750 to $2,500: Class A Misdemeanor (up to 1 year in county jail)
• $2,500 to $30,000: State Jail Felony (180 days to 2 years in a state jail)
• $30,000 to $150,000: Third-Degree Felony (2 to 10 years in prison)
• $150,000 to $300,000: Second-Degree Felony (2 to 20 years in prison)
• Over $300,000: First-Degree Felony (5 to 99 years or life in prison)

As you can see, a financial crime involving an amount common in business can easily become a first-degree felony with a potential life sentence in Texas.

A Closer Look at Common Federal White Collar Crimes

 Federal prosecutors in the Northern District of Texas are aggressive in pursuing white collar cases. An experienced Texas criminal defense lawyer must be prepared to defend against the full range of federal statutes.

Wire Fraud and Mail Fraud (18 U.S.C. §§ 1343 & 1341)

These are the workhorses of federal white collar prosecutions. Wire fraud involves using any electronic communication across state lines to execute a scheme to defraud.

Mail fraud involves using the U.S. mail for the same purpose.

Because nearly all modern business involves email or electronic payments, prosecutors can use these statutes to charge a vast range of conduct. A conviction for wire or mail fraud carries a maximum sentence of 20 years in federal prison.

Bank Fraud (18 U.S.C. § 1344)

Bank fraud involves any scheme to defraud a federally insured financial institution. This can include anything from providing false information on a loan application to complex check-kiting schemes.

The government does not need to prove the bank actually lost money, only that you intended to defraud it. A conviction for bank fraud carries a maximum penalty of 30 years in federal prison.

Money Laundering (18 U.S.C. § 1956)

Money laundering is the act of engaging in a financial transaction to conceal the source or ownership of illegally obtained money. It is often charged alongside the primary fraud offense, effectively stacking charges and adding significant potential prison time.

A conviction for money laundering carries a maximum penalty of 20 years in federal prison.

Common Legal Defenses to White Collar Crimes

Being charged with a white collar crime is not the same as being convicted. A skilled Texas criminal defense lawyer will assess the specific facts of your case to determine which legal defenses may apply and how to present them most effectively.

Common defenses in white collar cases include the following:

Lack of Intent

Most white collar crimes require proof that the defendant knowingly and intentionally committed fraud or deception. Honest mistakes or negligent bookkeeping generally do not meet this standard.

Duress or Coercion

If you were compelled to commit the offense due to threats or unlawful pressure from someone else, you may have a valid defense. Courts evaluate whether the coercion was immediate and whether your fear was reasonable.

Insufficient Evidence

The prosecution must prove its case beyond a reasonable doubt. If the evidence is circumstantial, inconsistent, or lacking in credibility, your attorney may be able to obtain a dismissal or acquittal.

Entrapment

If law enforcement induced you to commit a crime that you were not otherwise inclined to commit, you may raise an entrapment defense. This is particularly relevant in cases involving undercover operations.

Procedural Violations

If your constitutional rights were violated, such as through an unlawful search or seizure, any evidence obtained may be suppressed. This can weaken or destroy the government’s case.

An early and aggressive defense strategy may significantly alter the course of a white collar case. The sooner you consult a qualified lawyer, the more options may be available to you.

How a Texas Criminal Defense Lawyer Can Help Avoid Jail Time

While the penalties are severe, a proactive and strategic defense can significantly influence the outcome of a white collar case. An experienced defense attorney does not simply wait for the government to present its case; they challenge it at every step, often starting long before an indictment is returned.

Early Intervention Can Shape the Case

One of the most important opportunities to influence the outcome of a white collar case comes before any formal charges are filed. If you learn that you are under investigation, a Texas criminal defense lawyer can act quickly to contact the prosecutor and begin advocating on your behalf.

This stage, often called pre-indictment intervention, allows your attorney to present evidence, correct misunderstandings, and offer legal arguments that may persuade the prosecutor to file reduced charges or avoid prosecution entirely. It takes detailed knowledge of how state and federal prosecutors assess cases to be effective during this critical phase.

Challenging the Government’s Loss Calculation

As established, the loss amount drives the sentence. The government will almost always argue for the highest possible loss figure. A key defense strategy is to aggressively challenge this number.

This often involves retaining a forensic accountant to conduct an independent analysis of the financial records. By demonstrating that the actual loss was far less than the government claims, the defense can dramatically reduce the sentencing guideline range, which can be the difference between probation and years in prison.

Arguing for a Variance or Downward Departure

Even if a conviction occurs, the sentence is not automatic. An effective Texas criminal defense lawyer can argue for a sentence below the calculated guideline range by filing a detailed sentencing memorandum with the judge.

This memorandum presents mitigating factors that the guidelines do not fully account for, such as a defendant’s history of community service, family circumstances, or minimal role in a larger scheme.

According to the Department of Justice’s own principles, prosecutors and judges must consider these individual characteristics. A persuasive argument for a variance or downward departure can have a profound impact on the final sentence.

Collateral Consequences of a White Collar Conviction

While most people focus on the possibility of jail time, a white collar conviction often brings long-lasting consequences that affect many aspects of life. A Texas criminal defense lawyer can help you understand the broader implications and work to minimize the damage wherever possible.

Some of the most serious collateral consequences include:

• Loss of Professional Licenses: If you hold a professional license in medicine, law, accounting, finance, or a similar field, a criminal conviction may lead to suspension or permanent revocation.
• Immigration Consequences: Non-citizens may face deportation, visa denial, or inadmissibility if convicted of a fraud-related offense. Many white collar crimes are considered crimes of moral turpitude under immigration law.
• Civil Asset Forfeiture: Prosecutors can seize assets they believe were connected to or derived from criminal conduct, sometimes even before a conviction. You may need to litigate to recover what was taken.
• Reputational Harm: Allegations of dishonesty or fraud can severely damage your professional and personal reputation, even if the charges are ultimately dropped.
• Restitution and Financial Penalties: Courts frequently impose restitution payments to alleged victims, as well as fines. These financial burdens can persist for years and impact your future credit, employment, and financial planning.

The best way to avoid or mitigate these consequences is to retain experienced legal counsel at the earliest possible stage of the case.

Now Is the Time to Protect Your Future

A white collar criminal investigation does not make the potential consequences any less real. A felony conviction can end your career, destroy your financial stability, and take away your freedom. The government is methodical, patient, and has nearly unlimited resources to build its case against you.

The most critical time to act is now. Waiting for an indictment gives the prosecution a significant advantage and may limit your defense options. Protecting your rights begins with understanding the process and having a strong advocate in your corner from the very beginning.

You don’t have to face this alone. Reach out to Whalen Law Office for a confidential consultation where we can talk through your unique situation. A skilled Texas criminal defense attorney is ready to help you take the next step forward. Call us today at (214) 368-2560.

FAQs for Texas Criminal Defense Lawyers

Can I be arrested without being indicted?

Yes. In Texas state cases, a person can be arrested based on probable cause before a grand jury indictment is issued. In federal cases, arrests typically follow an indictment, but not always. Early legal representation can help you avoid unnecessary detention.

Will I lose my job if I’m charged?

Potentially. Many employers have strict policies regarding criminal charges. Even if you are not convicted, you may face administrative leave or termination. This is especially true in industries that involve money, trust, or compliance.

What does it mean to be under federal investigation?

It means that one or more federal agencies are reviewing evidence to determine whether to file charges. This may involve surveillance, subpoenas, interviews, or financial audits. You may be identified as a subject, target, or witness. Your attorney can help you understand your status and take protective measures.

Do I have to talk to investigators if they contact me?

No. You have the right to remain silent and to have a lawyer present during any questioning. Speaking with investigators without legal counsel is risky and could unintentionally harm your case. Politely decline to answer questions and contact your attorney immediately.

Can white collar charges be reduced or dismissed?

Yes. In many cases, a skilled Texas criminal defense lawyer can negotiate with prosecutors before formal charges are filed. Even after charges are brought, errors in evidence, weak witness credibility, or constitutional violations may support a motion to dismiss or a favorable plea agreement.

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