Federal Theft and White Collar Crimes

Money Laundering

The federal criminal law of money laundering is largely set forth in 18 U.S.C 1956 and 1957. In general, people commit this offense if they disguise the financial proceeds from illegal activity as money from a legitimate source.

Money laundering is punishable by:

• up to 20 years in federal prison,
• fines, and
• restitution.

Federal mail fraud Statute 18 U.S.C. Section 1341 lists the elements in mail fraud:

• having devised or intending to devise a scheme to defraud (or to perform specified fraudulent acts), and
• use of the mail for the purpose of executing, or attempting to execute, the scheme (or specified fraudulent acts).” Schmuck v. United States, 489 U.S. 705, 721 n. 10 (1989).

Federal Identity Theft is defined in 18 U.S. Code § 1028

• Fraud and related activity in connection with identification documents, authentication features, and information as knowingly and without lawful authority 
• produces an identification document, authentication feature, or a false identification document;
• knowingly transfers an identification document, authentication feature, or a false identification document knowing that such document or feature was stolen or produced without lawful authority;
• knowingly possesses with intent to use unlawfully or transfer unlawfully five or more identification documents (other than those issued lawfully for the use of the possessor), authentication features, or false identification documents;
• knowingly possesses an identification document (other than one issued lawfully for the use of the possessor), authentication feature, or a false identification document, with the intent such document or feature be used to defraud the United States;
• knowingly produces, transfers, or possesses a document-making implement or authentication feature with the intent such document-making implement or authentication feature will be used in the production of a false identification document or another document-making implement or authentication feature which will be so used;
• knowingly possesses an identification document or authentication feature that is or appears to be an identification document or authentication feature of the United States or a sponsoring entity of an event designated as a special event of national significance which is stolen or produced without lawful authority knowing that such document or feature was stolen or produced without such authority;
• knowingly transfers, possesses, or uses, without lawful authority, a means of identification of another person with the intent to commit, or to aid or abet, or in connection with, any unlawful activity that constitutes a violation of Federal law, or that constitutes a felony under any applicable State or local law; or
• knowingly traffics in false or actual authentication features for use in false identification documents, document-making implements, or means of identification;

Fedral Credit Card Fraud

15 U.S. Code § 1644 – Fraudulent use of credit cards is defined as Whoever knowingly in a transaction affecting interstate or foreign commerce,

• uses or attempts or conspires to use any counterfeit, fictitious, altered, forged, lost, stolen, or fraudulently obtained credit card to obtain money, goods, services, or anything else of value which within any one-year period has a value aggregating $1,000 or more; or
• transports or attempts or conspires to transport in interstate or foreign commerce a counterfeit, fictitious, altered, forged, lost, stolen, or fraudulently obtained credit card knowing the same to be counterfeit, fictitious, altered, forged, lost, stolen, or fraudulently obtained; or
• uses any instrumentality of interstate or foreign commerce to sell or transport a counterfeit, fictitious, altered, forged, lost, stolen, or fraudulently obtained credit card knowing the same to be counterfeit, fictitious, altered, forged, lost, stolen, or fraudulently obtained; or
• receives, conceals, uses, or transports money, goods, services, or anything else of value (except tickets for interstate or foreign transportation) which (1) within any one-year period has a value aggregating $1,000 or more, (2) has moved in or is part of, or which constitutes interstate or foreign commerce, and (3) has been obtained with a counterfeit, fictitious, altered, forged, lost, stolen, or fraudulently obtained credit card; or
• receives, conceals, uses, sells, or transports in interstate or foreign commerce one or more tickets for interstate or foreign transportation, which (1) within any one-year period have a value aggregating $500 or more, and (2) have been purchased or obtained with one or more counterfeit, fictitious, altered, forged, lost, stolen, or fraudulently obtained credit cards; or
• furnishes money, property, services, or anything else of value, which within any one-year period has a value aggregating $1,000 or more, through the use of any counterfeit, fictitious, altered, forged, lost, stolen, or fraudulently obtained credit card knowing the same to be counterfeit, fictitious, altered, forged, lost, stolen, or fraudulently obtained—

A person convicted of this shall be fined not more than $10,000 or imprisoned not more than ten years, or both.

Federal Wire Fraud Crimes

The elements of wire fraud under Section 1343 directly parallel those of the mail fraud statute, but require the use of an interstate telephone call or electronic communication made in furtherance of the scheme. the four essential elements of the crime of wire fraud are:

• that the defendant voluntarily and intentionally devised or participated in a scheme to defraud another out of money;
• that the defendant did so with the intent to defraud;
• that it was reasonably foreseeable that interstate wire communications would be used; and
• that interstate wire communications were in fact used.

Federal Embezzlement Violations

In Moore v. United States, 160 U.S. 268, 269 (1895), the Supreme Court defined embezzlement as the fraudulent appropriation of property by a person to whom such property has been entrusted, or into whose hands it has lawfully come. It differs from larceny in that the original taking was lawful, or with the consent of the owner, while in larceny the felonious intent must have existed at the time of the taking.

To prove the crime of embezzlement under 18 U.S.C. §  666(a)(1)(A) the United States must establish the following specific elements in addition to the general elements:

1. there was a trust or fiduciary relationship between the defendant and the private organization or State or local government agency;
2. the property came into the possession or care of the defendant by virtue of his/her employment;
3. the defendant’s dealings with the property constituted a fraudulent conversion or appropriation of it to his/her own use; and
4. the defendant acted with the intent to deprive the owner of the use of this property.

The requirement that the defendant act with the intent to deprive the owner of his property makes embezzlement a specific intent crime. See United States v. May, 625 F.2d 186, 189-90 (8th Cir. 1980). It should be noted, however, that the intent required to violate the law is not an intent to deprive another of his/her property permanently. Therefore, even if an individual intends to return the property, his/her actions are still illegal. In short, restoration of the property illegally taken is no defense to embezzlement. 

Examples of Embezzlement

Embezzlement is a complex criminal charge that involves the unlawful appropriation of funds or property entrusted to one’s care, often occurring within corporate environments where individuals have access to significant financial resources. Many believe it’s conducted within secrecy, shadowed by an air of sophistication or concealed behind high-caliber corporate veils. Yet, this isn’t always the case.

For instance, consider an officer of an Alabama corporation, entrusted with the fiscal responsibility for his company. Seduced by personal financial strains, he begins subtly diverting company funds into a private account. Seemingly small, insignificant amounts at first, and he frames these actions as accounting errors when questioned. Over time, this subtly accumulated wealth might snowball into an astronomical sum, resulting in severe penalties under Alabama law if caught.

In another scenario, envision a non-profit California organization where a trusted treasurer misrepresents the costs of a fundraiser, pocketing the inflated amount. This deviation, if caught, may expose the treasurer not just to heavy penalties but also to a hefty blow to their reputation, both personally and professionally.

These are just a few hypothetical cases of embezzlement. In reality, these circumstances can vary greatly and don’t always fit within common stereotypes. The intricacies of such cases necessitate guidance from a team of experienced legal representatives. Our law firm provides robust representation for individuals who, like the fictional characters above, find themselves under the daunting microscope of embezzlement charges. Dealing with these accusations calls for a savvy, knowledgeable team that understands the complexities involved and is capable of fighting vigorously to protect your interests. We promise to walk you through every step of the legal process, providing the support you need when you need it most.

If you have been charged with a Federal White Collar Crime call our Birmingham Alabama White Collar Crime attorney at (205) 823-7233.