Fraud, money laundering and embezzlement are among the most common white-collar criminal charges prosecuted in the U.S. People who work in the financial sector or who hold positions of trust at their companies can potentially engage in misconduct that leads to financial criminal charges.
While those accused of fraud or money laundering might expect to face state charges, federal prosecution is relatively common for financial offenses. Why does the jurisdiction often shift from the state courts to federal courts when people face allegations of financial crimes?
The use of government infrastructure
Many financial crimes involve one or more types of infrastructure. People use phone lines, the internet or the United States Postal Service (USPS) to disseminate information about a fraudulent scheme.
They transfer funds through the Federal Reserve when committing mortgage fraud. When there is proof that key infrastructure played a role in criminal activity, the matter may warrant federal prosecution.
Interstate financial transactions
Many financial crimes become federal matters because they involve people in more than one jurisdiction. A person working in Tennessee may embezzle from their employer while on business trips to other states. They might engage in personal spending and then try to write off those costs as business expenses.
Those engaged in mail or online fraud might solicit people all over the country in the hopes of tricking them. When financial misconduct involves people or businesses and more than one state, the matter may lead to federal prosecution.
Professionals facing white-collar criminal charges, especially at the federal level, likely need assertive representation to respond to those charges. Consulting with an attorney familiar with both Tennessee state laws and federal white-collar statutes can help people to avoid devastating federal convictions.