White collar crimes are nonviolent offenses committed for profit. Examples are fraud, embezzlement, insider trading, tax evasion, bribery and various forms of corporate misconduct. Unlike street crimes, white collar offenses involve complex financial transactions and schemes to deceive. Pennsylvania and federal authorities investigate and prosecute these crimes. State cases focus on violations of state law, while federal cases involve schemes that cross state lines or that violate federal statutes.

A white collar criminal case generally goes through these stages:

1. Covert investigation — This is done at the state level by the Pennsylvania Attorney General’s Office, Pennsylvania State Police or a local district attorney. Federal investigations are done by the Federal Bureau of Investigation (FBI), Internal Revenue Service (IRS), Securities and Exchange Commission (SEC) and Department of Justice. These agencies might spend months collecting evidence without the target’s knowledge. They subpoena documents, interview witnesses, conduct wiretaps or surveillance and enlist cooperation of insiders or whistleblowers. Frequently, a suspect discovers they’re under investigation only upon receiving a target letter, a grand jury subpoena or an unexpected visit from government agents.

2. Subpoenas and target letters — A target letter is an official notice from federal prosecutors advising that you are the focus of a criminal investigation. While it is not a formal charge, it is a serious warning and should never be taken lightly. Alternatively, you may receive a grand jury subpoena requesting your own testimony or access to financial records, corporate documents, emails and other communications. Immediately consult an experienced white collar criminal defense attorney for assistance in formulating a response.

3. Grand jury proceedings — Grand juries operate in secret. Prosecutors present evidence to a panel of citizens who decide whether enough evidence exists for charges. As a target, you typically do not testify unless subpoenaed. Your defense attorney cannot be present in the grand jury room but can advise you of your rights. The grand jury may return an indictment, which is a formal criminal charge, or declare "no true bill" if it finds insufficient evidence.

4. Indictment and arrest — If indicted, you may be arrested or permitted to self-surrender. You will appear before a magistrate judge for an initial hearing. The court will consider bond and other conditions for release, which may include surrendering your passport and travel restrictions. Once indicted, your case becomes public, even before any trial or conviction.

5. Pre-trial proceedings— Your attorney will obtain and review the government’s evidence, file motions to suppress unlawfully obtained evidence or to dismiss charges, negotiate with prosecutor, and prepare for trial. White collar cases frequently revolve around complicated financial records, digital correspondence and the credibility of witnesses.

6. Trial or plea agreement — Most white collar cases are resolved through plea agreements. These often are conditioned on making restitution to victims. If you go to trial and are convicted, your sentence will be determined by applicable guidelines. Federal guidelines factor in the amount of financial loss, the number of victims, your role in the offense and your accepting responsibility. Pennsylvania guidelines consider the gravity of the offense and your prior criminal record if any.

Being the target of a white collar criminal investigation in Pennsylvania is serious but not hopeless. Taking proactive steps from the very beginning is the best way to protect your rights, your reputation and your future. Early intervention by knowledgeable legal counsel and strategic case management can significantly improve your prospects for an acquittal or a significant reduction in sentence. 

Phil DiLucente & Associates, LLC in Pittsburgh advocates on behalf of Pennsylvania clients accused of white collar offenses in state and federal courts. For a free initial consultation regarding your situation and options, please call 1.800.GET.PHIL or contact us online.