## White-collar crime defense in North Carolina **White-collar crime** is a broad term for non-violent financial crimes — typically committed by professionals or in business contexts. Most major white-collar cases are prosecuted in federal court because federal statutes have national reach and federal prosecutors have dedicated white-collar units. ### Federal prosecution of North Carolina white-collar cases U.S. Attorneys for the Eastern, Middle, and Western Districts of North Carolina. ## Common federal white-collar offenses - **Wire fraud** (18 U.S.C. § 1343) — using wire, radio, TV, or internet for fraud. The federal swiss-army knife. - **Mail fraud** (18 U.S.C. § 1341) — using the postal service for fraud - **Securities fraud** (15 U.S.C. § 78j) — insider trading, accounting fraud, market manipulation - **Bank fraud** (18 U.S.C. § 1344) — defrauding financial institutions - **Money laundering** (18 U.S.C. § 1956, § 1957) — financial transactions to disguise criminal proceeds - **Tax evasion** (26 U.S.C. § 7201) — willful failure to pay taxes - **Bribery / corruption** — Foreign Corrupt Practices Act (FCPA), domestic public corruption - **Healthcare fraud** (18 U.S.C. § 1347) — Medicare / Medicaid billing fraud - **Embezzlement** - **Identity theft** (18 U.S.C. § 1028) - **Computer Fraud and Abuse Act (CFAA)** offenses - **RICO** — organized criminal enterprise statutes - **Conspiracy** (18 U.S.C. § 371) — added to almost every white-collar case ## State white-collar offenses States also prosecute white-collar crimes — often parallel to federal cases: - **State tax evasion** - **State securities violations** - **Insurance fraud** — often state-prosecuted - **Embezzlement / theft** - **Forgery and check fraud** - **Identity theft** - **Public corruption** — particularly for state and local officials ## Why federal prosecution hurts more **Sentencing.** Federal sentencing guidelines drive sentences up sharply for financial cases: - Loss amount is the primary driver — every additional dollar adds time - Sophisticated means, multiple victims, position of trust, etc. add levels - Loss amount of $1.5M+ produces multi-year sentences even for first-time offenders - $5M+ produces sentences pushing 5-7 years - $25M+ can trigger 10+ year sentences **Mandatory restitution** (Mandatory Victims Restitution Act) — courts must order full restitution to victims regardless of ability to pay. **Asset forfeiture** — government can seize property derived from or used in the offense. **Collateral consequences** — career-ending in many fields (law, medicine, finance, real estate, government). ## Investigation phases Most federal white-collar cases proceed through: 1. **Initial inquiry / regulatory referral** — SEC, FDIC, IRS, FINRA, FBI 2. **Subpoenas** — for documents, bank records, communications 3. **Witness interviews** — informal voluntary, then grand jury subpoenas 4. **Search warrants** — for offices, homes, electronic devices 5. **Target letter** — formal notice you're under investigation 6. **Indictment / information** — formal charges 7. **Plea negotiations or trial** Investigations routinely run 1-3 years before any charges are filed. ## What to do if you receive a subpoena, target letter, or knock on the door - **STOP TALKING.** Don't speak to investigators without counsel — even "just to clear things up" - **Don't destroy any documents or messages** — obstruction charges are added regularly when destruction is detected - **Don't talk to colleagues about the investigation** — communications may not be privileged and can later be subpoenaed - **Hire white-collar counsel immediately** — preferably former federal prosecutors who know the local U.S. Attorney's office - **Preserve documents and emails** — potential exculpatory evidence - **Don't sign waivers** of attorney-client privilege - **Consider proffer / cooperation strategy** with counsel ## Cooperation and the 5K1.1 letter Federal cooperation can dramatically reduce sentences: - **Substantial assistance** to prosecution can result in a § 5K1.1 motion at sentencing - This motion can support a sentence below the guideline range and below mandatory minimums - Cooperation requires complete truthfulness — proven lies destroy the value - Cooperation puts you in the awkward position of testifying against former colleagues / family ## Civil and regulatory parallel proceedings White-collar cases often have parallel: - **SEC / FINRA enforcement actions** — civil penalties, industry bars - **IRS civil tax proceedings** — even when criminal case dismisses - **Civil lawsuits by victims** — class actions, individual investor suits - **Asset forfeiture proceedings** - **Professional discipline** — bar, medical board, etc. ## What you should do White-collar cases require highly specialized counsel — typically former federal prosecutors. Hire counsel BEFORE responding to subpoenas, BEFORE attending interviews, BEFORE producing documents. North Carolina federal practitioners and white-collar attorneys offer paid initial consultations and can quickly assess investigation status. Don't try to navigate this alone. --- *This guide is general information about federal and North Carolina law as of early 2026 and is not legal advice. White-collar prosecution is highly fact- and evidence-specific. Talk to a licensed white-collar defense attorney about your specific case.*