White-Collar Crime: Definition, Types, and Consequences

If you were asked to name crimes, you might immediately think of violent ones, such as fighting or murder. You could even include nonviolent ones, such as stealing. Things like hurting a family member or driving drunk may also come to mind. Depending on the circumstances, these offenses may result in incarceration in Texas. But there’s another type of crime in Texas that gets less attention, despite being just as serious: white-collar crime. Although white-collar crimes do not involve physical violence, they can be just as severe. In fact, they sometimes face harsher penalties than other offenses.

Texas is well known for its strong economy and numerous industries. However individuals still engage in fraudulent activities involving money. In this article, we will look at white-collar crime in Texas. We’ll discuss how frequent it is, the various types, what happens if you are caught, and what Texas is doing to put an end to it.

Definition of a White-Collar Crime

White-collar crime is a term used to describe a category of non-violent, financially motivated offenses typically committed by individuals, businesses, or government officials. While Texas law doesn’t explicitly provide a single definition for white-collar crime, it encompasses various types of fraudulent and deceptive activities that violate the state’s criminal laws.

Texas Law Definition

Chapter 32 of the Texas Penal Code covers white-collar crimes. It defines:

1. Financial institutions such as banks, trusts, insurance companies, and alike (§ 32.01(1)).
2. Property as land, personal items, or valuable documents, including money (§ 32.01(2)).
3. Services such as labor, utilities, lodging, and more (§ 32.01(3)).

The value of property or services is defined as their market value at the time of the offense or the cost of replacement if the market value can’t be determined (§ 32.02(a)). For documents, it’s the amount due at maturity or the potential economic loss (§ 32.02(b)).

Why Is It Called a ‘White-Collar Crime’?

In the 1930s, a sociologist named Edwin Sutherland came up with the term “white-collar crime.” He used it to discuss crimes that are about money and are non-violent. These crimes are committed by people who have important jobs and are commonly associated with such individuals, in contrast to blue-collar workers who typically wear work uniforms or overalls. It’s important to know that not only people with low socioeconomic status commit these crimes, but also people with respected roles.

Nowadays, we use “white-collar crime” to talk about money-related crimes like fraud and stealing in places like businesses, government, or professional jobs.

Common Types of a White-Collar Crime

Embezzlement

Embezzlement is when someone takes the money they were trusted with for themselves. This can happen at work when an employee steals from their boss or in personal situations when someone steals from family or friends.

Fraud

Fraud involves when someone tricks others into getting something for themselves.

• Corporate Fraud: Corporate crimes are when a person or a company does dishonest things in business. They do this to get an advantage for themselves, and it’s not fair or ethical.
• Insurance Fraud: Insurance fraud is when someone lies to get money from an insurance company. This can happen when buying, using, selling, or dealing with insurance.
• Securities Fraud, or Investment Fraud: is when a financial advisor deceives clients for personal gain. Sharing secret stock info with clients before the company’s leaders can lead to insider trading charges.

Identity theft

Identity theft is when someone gets and uses another person’s personal information, like their Social Security number or financial details, to do fraudulent things.

Money Laundering

Money laundering conceals illicit funds by making them appear legitimate. This includes moving money between accounts and buying/selling things to cover their origin.

Ponzi Scheme

A Ponzi scheme is when someone takes money from new investors to pay off the old ones, promising high returns. It’s a risky investment trick that can cause people to lose a significant amount of money.

Tax Evasion

Tax evasion occurs when individuals fail to pay their taxes as required. Some do it on purpose by lying about their income, but others do it by mistake. It’s a big problem, and it’s estimated that a lot of the country’s budget deficit comes from unpaid taxes.

White-Collar Crime Punishments in Texas

Misdemeanor white-collar crimes come in three levels:

• Class C Misdemeanor: This applies when the value of the pilfered items is under $50. The punishment is a monetary penalty that could reach $500, and it doesn’t include imprisonment.
• Class B Misdemeanor: If the value involved is between $50 and $500. The punishment can be a fine of up to $2,000, a jail stay of up to 180 days, or both.
• Class A Misdemeanor: When the value involved is between $500 and $1,500. The penalty may include a fine of up to $4,000, a jail sentence of up to 1 year, or both.

Felony white-collar crimes

• State Jail Felony (Amounting of $1,500 to $20,000): Punishments can range from 180 days to 2 years in jail, along with a fine of up to $10,000.
• Third-Degree Felony (Amounting of $20,000 to $100,000): Penalties include 2 to 10 years in prison and a fine of up to $10,000.
• Second-Degree Felony (Amounting of $100,000 to $200,000): Consequences may involve 2 to 20 years in prison and a fine of up to $10,000.
• First-Degree Felony (Amounting to more than $200,000): Punishments can range from 5 to 99 years in prison, along with a fine of up to $10,000.

It’s important to note that if white-collar criminals have a prior criminal history, harm many people, target elderly individuals, or steal an exceptionally large amount of money, the penalties for both state and federal charges could be more severe than the typical statutory penalties.

Arrested? Don’t Plea, Call Me!

White-collar crimes can be complicated since they fall under both state and federal jurisdiction. Whether you are facing state or federal charges, it is critical to remember that the prosecutor must prove your guilt beyond a reasonable doubt, which is a very high bar. To protect your rights, you must work with an experienced criminal defense lawyer who can use a variety of methods to contest the prosecution’s case and ensure they cannot achieve this high burden of proof.