Economic & “White Collar” Crimes (Forgery, Access Device Fraud, Identity Theft, Bad Checks, Insurance Fraud, Contractor Fraud, and more)
Economic or “White Collar” Crimes often involve conduct that sits squarely on the border between legal and illegal conduct. Accordingly, intent is often the key to converting a white collar crime to something non-criminal. This can be a civil lawsuit, an agreement to pay back the victim out of court, or even an outright dismissal. But, it can be very difficult to convince prosecutors that someone who cost someone else money did it with no criminal intent, especially where charges have already been filed. This is where the skills of a top-notch criminal defense attorney are priceless.
Although they lack physical violence, white collar crimes like forgery, writing bad checks, contractor fraud, and identity theft can carry serious punishments. If you face white collar crime charges, meet with an experienced attorney. We can analyze the facts and circumstances of your case and provide you with the best advice.
Examples of White Collar Crimes
The following are examples of white collar or economic crimes in Pennsylvania (click to skip to section):
- Forgery
- Simulating objects of antiquity
- Tampering with records or identification
- Bad checks
- Access device fraud
- Deceptive or fraudulent business practices
- Theft by failure to make required disposition of funds received
- Commercial bribery and breach of duty to act disinterestedly
- Defrauding secured creditors
- Fraud in insolvency (Bankruptcy fraud)
- Receiving deposits in a filing financial institution
- Misapplication of entrusted property and property of government or financial institutions
- Securing execution of documents by deception
- Insurance fraud
- Identity theft
If you face the possibility of an arrest for a white collar or economic crime in Pennsylvania you should speak with one of our experienced former prosecutors at once as there are many complicated decisions that must be made immediately. We have sometimes been able to convince a judge to dismiss the case at a preliminary hearing for insufficient evidence. In other instances, we can help reach an agreement with the complainant in order to dismiss charges. Waiting to make this decision could compromise the availability of these outcomes.
Forgery
Forgery is one of the more common white collar crimes we see charged. A person is guilty of forgery if, with intent to defraud or injure anyone, or with knowledge that he is assisting a fraud or injury to be perpetrated by another, the person:
- alters any writing of another without his authority
- completes, executes, authenticates, or transfers any writing so that it purports to be the act of another who did not authorize that act, or to have been executed at a time or place or in a numbered sequence other than was in fact the case, or to be a copy of an original when no such original existed
- utters any writing which he knows to be forged in a manner specified above
Forgery involving the government, like counterfeit money, is a felony of the second degree. The government must still prove the person knew the money was counterfeit. It’s not a crime to try to pay with money you had no reason to believe was fake. To protect yourself against unwittingly receiving or using counterfeit money, refer to the United States Secret Service’s “Know Your Money” publication.
Most forgery cases are a felony of the third degree. This is because most forgeries involve the use of personal/business checks or cards to steal money.
*Forgery of a signature on a personal check is a felony of the third degree, not a felony of the second degree. This is a common charging mistake made by police.
All other kinds of forgery are a misdemeanor of the first degree.
Simulating objects of antiquity
A person commits a misdemeanor of the first degree if, with intent to defraud anyone or with knowledge that he is assisting a fraud, he makes, alters, or utters any object so that it appears to have value because of antiquity, rarity, source, or authorship which it does not possess.
Tampering with records or identification
A person commits a misdemeanor of the first degree if, knowing that he has no privilege to do so, he falsifies, destroys, removes or conceals any writing, record, distinguishing mark, brand or other identification with intent to deceive or injure anyone or to conceal any wrongdoing.
Bad checks
Bad checks is another common white collar crime. A person commits the offense if he issues or passes a check (or similar order) for the payment of money, knowing that it will not be honored by the drawee. A violation occurs whether the location of the issuance or passing of the check is in Pennsylvania or not. It is therefore not a defense that some or all of the acts constituting the offense occurred outside Pennsylvania.
There is a presumption of criminal intent if:
- payment was refused because the issuer had no such account at the time the check was issued, or
- payment was refused by the drawee for lack of funds. A person overcomes this presumption by paying within 10 days of getting written notice of the bounced check.
- a check has a stamp of “insufficient funds” or “account closed” or “no such account” or “counterfeit.”
Notice occurs by sending registered or certified mail, to the address printed on the check. If there’s no address on the check, then it must go to the issuer’s last known address.
The following chart lists the grading for writing bad checks:
Check Amount | Penalty |
Less than $200 | Summary Offense |
$200-$499.99 | Misdemeanor 3 |
$500-$999.99 | Misdemeanor 2 |
$1,000-$74,999.99 | Misdemeanor 1 |
$75,000 or more | Felony 3 |
When it’s a third or subsequent offense within five years, the offense is a misdemeanor of the first degree. It’s still a felony-3 if the amount of the check is $75,000 or more.
Access device fraud
A person can commit this white collar offense in one of three ways.
The first way is using an access device to obtain (or try to obtain) property without authorization. An access device can be a credit card, debit card, account number, or PIN. This crime thus usually takes the form of someone using someone’s account without their permission. It can also be for using a counterfeit, fake, or cancelled device.
The seriousness depends on the value involved:
Value | Grading |
Less than $50.00 | Misdemeanor 2 |
$50.00-$499.99 | Misdemeanor 1 |
$500.00 or more | Felony 3 |
If the activity is ongoing, the values of each transaction can be added together to get a total amount for grading purposes. So, if a person conducts a $100 transaction five times (for $500), it can be one felony-3.
Second, the making, selling, and giving of a device for violating this law is a felony-3.
Third, merely possessing a device knowing that it’s counterfeit, altered, or belongs to another person who has not authorized its possession is a misdemeanor-3.
In the second and third points above, each device involved in the offense will constitute a separate offense.
Deceptive or fraudulent business practices
There are many ways in which one can commit this white collar offense. The most common are outlined below. A person commits a deceptive or fraudulent business practice if, in the course of business, he:
- uses or possesses for use a false weight or measure, or any other device for falsely determining or recording any quality or quantity
- sells or offers for sale, or delivers less than the represented quantity of a commodity or service
- takes or attempts to take more than the represented quantity of any commodity or service when as a buyer he furnishes the weight or measure
- makes a false or misleading statement in any advertisement addressed to the public or to a substantial segment of the public for the purpose of promoting the purchase or sale or property or services
- makes or induces others to rely on a false or misleading written statement for the purpose of obtaining property or credit
- obtains or attempts to obtain property of another by false or misleading representations made through communications conducted in whole or in part telephone involving express or implied claims that the person contacted has won a prize
The following chart demonstrates the penalties for deceptive or fraudulent business practices:
Amount Involved | Grading |
Amount cannot be ascertained | Misdemeanor 2 |
Less than $200 | Misdemeanor 2 |
$200-$2,000 | Misdemeanor 1 |
Over $2,000 | Felony 3 |
The prosecution can combine the values in determining the grade of the offense.
The grading increases by one level if the victim is over 60 years old.
Theft by failure to make required disposition of funds received
Another term for this offense is embezzlement. This white collar crime involves keeping money that isn’t yours. As a result, we see this offense most often in the employer-employee relationship. A person who obtains property upon agreement or legal obligation, to make specified payments or other disposition (whether from the property or its proceeds or from his own property to be reserved in equivalent amount) is guilty of the offense if he intentionally handles the property obtained as his own and fails to make the required payment or disposition. It is irrelevant that it may be impossible to identify particular property as belonging to the victim at the time the actor failed to make the required payment or disposition.
An officer or employee of the government or of a financial institution is presumed to know any legal obligation relevant to his criminal liability and to have dealt with the property as his own if he fails to pay or account upon lawful demand, or if an audit reveals a shortage or falsification of accounts.
Please consult the chart attached to the Theft page for the applicable penalties.
Commercial bribery and breach of duty to act disinterestedly
An employee, agent or fiduciary commits a misdemeanor of the second degree when he solicits, accepts, or agrees to accept any benefit from another person upon agreement or understanding that such benefit will influence his conduct in relation to the affairs of his employer or principal without the consent of his employer or principal.
Defrauding secured creditors
A person commits a misdemeanor of the second degree if he:
- destroys, removes, conceals, encumbers, transfers or otherwise deals with,
- property subject to a security interest or after levy has been made on the property,
- with intent to hinder enforcement of the interest.
Fraud in insolvency (Bankruptcy fraud)
A person commits a misdemeanor of the second degree if, knowing that proceedings have been or are about to be instituted for the appointment of a receiver or person entitled to administer property for the benefit of creditors, or that a composition or liquidation for the benefit of creditors has been or is about to made, he:
- destroys, removes, conceals, encumbers, transfers, or otherwise deals with any property with intent to defeat or obstruct the claim of any creditor, or otherwise to obstruct to operation of any law relating to administration of property for the benefit of creditors
- knowingly falsifies any writing or record relating to the property
- knowingly misrepresents or refused to disclose to a receiver or person entitled to administer property for the benefit of creditors, the existence, amount or location of the property, or any information which the actor could be legally required to furnish in relation to such administration
Receiving deposits in a filing financial institution
An officer, manager or person directing or participating in the direction of financial institution commits a misdemeanor of the second degree if he receives or permits the receipt of a deposit, premium payment or other investment in the institution knowing that:
- due to financial difficulties the institution is about to suspend operation or go into receivership or reorganization and
- the person making the deposit or other payment is unaware of the precarious situation of the institution
If the amount involved exceeds $50, the offense is a misdemeanor of the second degree. Otherwise, the offense is a misdemeanor of the third degree.
Misapplication of entrusted property and property of government or financial institutions
A person commits this white collar offense if he applies or disposes of property that has been entrusted to him as a fiduciary, or property of the government or of a financial institution, in a manner which he knows is unlawful and involves substantial risk of loss or detriment to the owner of the property or to a person for whose benefit the property was entrusted. The offense is a misdemeanor of the second degree if the amount involved exceeds $50. Otherwise, the offense is a misdemeanor of the third degree.
Securing execution of documents by deception
A person commits a misdemeanor of the second degree if, by deception, he causes another to execute any instrument affecting, purporting to affect, or likely to affect the pecuniary interest of any person.
Insurance fraud
A person can commit this white collar offense in several ways. A few examples are below. A person commits an offense if the person does the following:
- knowingly and with the intent to defraud…
- a State or local government agency, files or presents to the government agency a document that contains false, incomplete or misleading information concerning any fact material to the agency’s determination in approving or disapproving a motor vehicle insurance rate filing, insurance transaction or other action which is required or filed in response to an agency’s request; OR
- any insurer, presents any statement forming a part of, or in support of, a claim that contains any false, incomplete or misleading information concerning any fact or thing material to the claim; OR
- any insurer, assists, solicits or conspires with another to prepare or make any statement that is intended to be presented to any insurer in connection with, or in support of, a claim that contains any false, incomplete or misleading information concerning any fact or thing material to the claim, including information which document or supports an amount claimed in excess of the actual loss sustained by the claimant; OR
- knowingly benefits, directly or indirectly, from the proceeds derived from a violation of this offense due to the assistance, conspiracy or urging of any person; OR
- borrows or uses another person’s financial responsibility or other insurance identification card or permits his financial responsibility or other insurance identification card to be used by another, knowingly and with intent to present a fraudulent claim to an insurer.
These offenses are all a felony of the third degree. As with any sentence after conviction, the judge may order restitution to compensate the victim. This is typical in a white collar case.
Identity theft
Identity theft is a form of fraud or cheating of another person’s identity in which someone pretends to be someone else by assuming that person’s identity, typically in order to access resources or obtain credit and other benefits in that person’s name. It is a more common form of white collar crime.
A person commits the offense if he possesses or uses, through any means, identifying information of another person without the consent of that other person to further any unlawful purpose.
Each time a person possesses or uses identifying information in violation is a separate offense. The prosecution can combine the values for grading purposes.
An offense gets its grading depending on the value or other factual circumstances:
Value | Classification |
$1-$1,999.99 | Misdemeanor 1 |
$2,000 or more | Felony 3 |
If offense is a third or subsequent (value is irrelevant) | Felony 2 |
If offense is in furtherance of a criminal conspiracy (value is irrelevant) | Felony 3 |
The grading increases by one level if the victim is over 60 years old. It also increases by one grade if the victim was care-dependent.