White Collar Crime Prosecution on the Rise

October 12, 2012

As the U.S. economy shows signs of improvement, an increasing number of white collar crimes are being prosecuted across the country. According to a report by the Business Journal, the U.S. Securities and Exchange Commission filed 735 enforcement actions in the fiscal year that ended Sept. 30, 2011. This included 146 actions related to investment advisers and investment companies. Broker-dealers were involved in 112 inquiries. Both represented significant increases from 2010, and factored into the $2.8 billion in penalties levied by the SEC.

Hedge fund operators and financial executives are not the only ones being held accountable for criminal acts. Health care fraud prosecutions have also skyrocketed over the last five years. A USA Today report indicated that due to coordinated efforts between the Department of Justice and the Health and Human Services Administration, more than 1000 prosecutions occurred in 2011. The trend appears to be continuing, with 91 individuals recently charged in a scheme that amounted to $421 million in false billing. Additionally, the FBI has increased its investigation into tax fraud and mortgage fraud schemes.

Legal analysts see several reasons behind this trend. Increased regulation, initially intended to prevent future meltdowns and limit government waste, have resulted in more audits and inspections. These investigations have revealed a greater number of rule violations and fraudulent activity. Also, the last economic crisis created an atmosphere where people went to great lengths to maintain appearances and find new business opportunities. What was once a temporary adjustment to market conditions became a new (albeit, improper) way of doing business.

Even with more criminal charges being filed, white collar crimes are becoming increasingly difficult to prosecute. Embezzlement, money laundering and other financial schemes have become so elaborate that some prosecutors worry they won't be able to explain them to a jury clearly enough to secure a conviction.

Moreover, many potential jurors find it difficult to see those accused of white collar crimes as criminals. People who rob people on the street or break into homes are generally seen as common criminals, while those accused of insider trading or operating Ponzi schemes in secret are more often viewed as solid, upstanding citizens. Indeed, Bernie Madoff and other kingpins are vilified for bilking their victims out of millions, but most people do not believe that successful business people are committing criminal acts.

Nevertheless, white collar crimes carry serious, life-changing consequences. If you have been charged with a crime, or believe you are under investigation, an experienced criminal defense attorney can advise you.

Article provided by Law Offices of Terrence P. Lefevour
Visit us at www.lefevourlaw.com