When someone is accused of a white-collar crime, the jurisdiction in which they’re tried – state or federal – impacts the best way to approach their defense strategy, the potential penalties they may face if convicted and the complexity of the case at issue overall.
If you or a loved one is facing white-collar criminal charges, you may not have considered the ways in which jurisdiction could impact your situation. Working with your legal team to understand the differences between state and federal white-collar criminal charges can help you to pursue a strong, informed approach to your defense.
State white-collar criminal charges
State-level white-collar charges typically involve violations of state laws and crimes that occur within a single state. Examples include insurance fraud, identity theft or embezzlement affecting a local business. State prosecutors may pursue these cases because they have jurisdiction over crimes committed within their state boundaries.
Penalties for state-level white-collar crimes vary by jurisdiction. For example, in California, a conviction for embezzlement could result in an order to pay restitution to victims. Broadly speaking, these cases often involve smaller-scale investigations and resources compared to federal cases.
Federal white-collar criminal charges
Federal white-collar charges are more complex and usually involve crimes that – in some way, even if only online – cross state lines, affect federal agencies and/or violate federal laws. Federal charges typically carry harsher penalties due to the involvement of extensive financial damages, sophisticated schemes and/or harm to national interests. Sentences can include substantial prison terms, hefty fines, and forfeiture of assets. Federal guidelines, such as those outlined in the U.S. Sentencing Guidelines, often dictate sentencing, limiting judicial discretion.
The primary differences between state and federal white-collar charges lie in the scope, severity and resources involved. With all of this said, it is important to remember that all white-collar conviction scenarios can be life-altering in ways that are best avoided. Therefore, those who are being investigated or actively prosecuted should strongly consider seeking legal guidance as proactively as possible.
