What Are White Collar Crime Charges?
White collar crimes are financially motivated, non-violent offenses typically committed by individuals in professional or business settings. These charges encompass a wide range of conduct — from embezzlement and fraud to computer crimes and perjury — and can be prosecuted under both California state law and federal statutes. White collar investigations are often complex, involving forensic accounting, digital evidence analysis, and lengthy pre-charge investigations.
If you are under investigation or have been charged with a white collar crime in San Jose, San Francisco, Palo Alto, San Mateo, or anywhere throughout the Bay Area, the defense attorneys at RV Litigation Group PC can help. Early legal intervention is particularly critical in white collar cases, where the investigation phase often determines the outcome. We protect your rights from the moment you learn you are under scrutiny.
What the Law Says
Penal Code 503 — Embezzlement
"Embezzlement is the fraudulent appropriation of property by a person to whom it has been intrusted." — California Penal Code Section 503
Embezzlement occurs when someone who has been entrusted with property — typically an employee, business partner, or fiduciary — takes or misuses that property for their own benefit. The key distinction between embezzlement and ordinary theft is the relationship of trust. The prosecution must prove that the defendant was entrusted with the property, that they fraudulently used or converted it, and that they intended to deprive the owner of its use. Courts in Santa Clara County frequently handle embezzlement cases involving employees of Silicon Valley companies, where access to corporate funds creates opportunities for misappropriation.
Penal Code 532 — Theft by False Pretenses
"Every person who knowingly and designedly, by any false or fraudulent representation or pretense, defrauds any other person of money, labor, or property, whether real or personal... is punishable in the same manner and to the same extent as for larceny of the money or property so obtained." — California Penal Code Section 532(a)
Theft by false pretenses involves obtaining someone's property through a lie or deception with the intent to defraud them. Unlike robbery or traditional theft, the victim voluntarily hands over their property — but only because they were deceived. The prosecution must prove a false representation, knowledge that it was false, intent to defraud, and that the victim relied on the false representation when parting with their property. Prosecutors in San Francisco County actively pursue these cases, particularly in matters involving real estate fraud, investment schemes, and business-to-business fraud.
Real-World Examples
These scenarios illustrate how white collar charges commonly arise in the Bay Area:
An office manager at a tech company in San Jose has authority over the company's expense account. Over 18 months, she diverts $75,000 to her personal bank account by creating fictitious vendor invoices. When the company conducts an internal audit, the discrepancies are discovered. She is charged with felony embezzlement under PC 503 because the amount exceeds $950 and she was in a position of trust. The defense may challenge the prosecution's calculation of the amount taken or argue that some payments were authorized.
A financial advisor in Palo Alto solicits investments from clients, promising guaranteed returns. He uses new investors' money to pay returns to earlier investors rather than making legitimate investments. After multiple clients complain and the SEC opens an investigation, he is charged with theft by false pretenses under PC 532 and may face federal wire fraud charges. His defense attorney may argue that he made good faith business decisions and genuinely intended to generate returns.
A former software engineer in San Francisco accesses his old employer's computer systems after being terminated, downloading proprietary source code and client data. He is charged with unauthorized computer access under PC 502. His defense attorney argues that his access credentials had not been revoked and that he did not know his access was no longer authorized, challenging the element of knowledge required for conviction.
A homeowner in San Mateo files an insurance claim for water damage, substantially inflating the value of damaged personal property. The insurance company's investigators discover the exaggeration and refer the case to the district attorney. He is charged with insurance fraud under PC 550, a wobbler offense. The defense may argue that the homeowner genuinely believed the claimed values were accurate or that the discrepancy was an honest estimation error rather than intentional fraud.
Penalties
White collar crime penalties depend on the specific offense, the dollar amount involved, the number of victims, and whether the case is prosecuted at the state or federal level.
| Charge | Classification | Jail / Prison | Fine |
|---|---|---|---|
| Embezzlement (PC 503) | Wobbler | 2, 3, or 4 years state prison (felony) | Up to $10,000 + restitution |
| Theft by False Pretenses (PC 532) | Wobbler | Up to 3 years state prison (felony) | Up to $10,000 + restitution |
| Computer Fraud (PC 502) | Wobbler | Up to 3 years state prison (felony) | Up to $10,000 |
| Perjury (PC 118) | Felony | 2, 3, or 4 years state prison | Up to $10,000 |
| Insurance Fraud (PC 550) | Wobbler | 2, 3, or 5 years state prison (felony) | Up to $150,000 or double the fraud amount |
| Money Laundering (PC 186.10) | Felony | Up to 4 years state prison | Up to $250,000 or twice the laundered amount |
Additional consequences: White collar convictions carry consequences far beyond incarceration and fines. Courts typically order full restitution to the victims, which can amount to millions of dollars. A conviction can result in the loss of professional licenses, disqualification from serving as a corporate officer or director, immigration consequences, and permanent damage to your reputation. Federal white collar convictions often carry mandatory minimum sentences and can result in the forfeiture of assets. The collateral consequences for professionals in Silicon Valley's business community can be career-ending.
Legal Defenses
White collar cases are document-intensive and require a defense team that understands both the law and the financial complexities involved. Here are the defenses our attorneys most frequently use for clients in San Jose and throughout California:
1. Lack of Intent to Defraud
Every white collar offense requires proof of criminal intent — specifically, the intent to defraud or deceive. If your actions were the result of a good faith business decision, an honest mistake, or negligent bookkeeping rather than deliberate fraud, the prosecution cannot establish the required mental state. We present evidence of your honest intent, including your communications, your business practices, and your conduct before and after the alleged offense.
2. Good Faith Belief
If you genuinely believed that you were entitled to the property or funds, or that your business representations were accurate, this can negate the element of fraud. For example, an employee who believed they had authorization to use company funds for a particular purpose, or a business owner who honestly believed their financial projections were achievable, may have acted in good faith. We gather evidence supporting the reasonableness of your belief.
3. Insufficient Evidence of a Scheme
White collar prosecutions are built on circumstantial evidence — financial records, emails, testimony from witnesses, and forensic accounting analyses. We scrutinize every piece of evidence, challenge the prosecution's interpretation of financial transactions, identify alternative explanations for the conduct, and expose weaknesses in the government's case. Often, what the prosecution characterizes as a criminal scheme is actually legitimate business activity that was poorly documented or misunderstood.
4. Statute of Limitations
White collar investigations often take years before charges are filed. Under California law, most fraud offenses have a statute of limitations of one to four years, depending on the specific charge. If the prosecution files charges after the applicable limitations period has expired, the case must be dismissed. Clients in Palo Alto and surrounding communities who have been under investigation for extended periods may benefit from this defense. We carefully analyze the timeline of the alleged conduct and the date charges were filed.
5. Duress
If you were coerced or pressured into committing the offense by a supervisor, employer, or other individual who threatened you with serious consequences — such as termination, financial ruin, or physical harm — you may have a duress defense. This requires showing that the threat was immediate and credible, and that you had no reasonable alternative. We investigate the workplace dynamics and power relationships that may have contributed to your involvement.
6. Entrapment
If law enforcement or government agents induced you to commit a crime that you would not have otherwise committed, you may have an entrapment defense. This defense is relevant in sting operations and undercover investigations. The prosecution must show that you were predisposed to commit the offense; if the idea originated entirely with law enforcement and you were persuaded through pressure, flattery, or deception, entrapment may apply.
Frequently Asked Questions
State white collar charges are prosecuted under the California Penal Code and handled in state court. Federal charges are brought under federal statutes such as wire fraud (18 U.S.C. 1343), mail fraud (18 U.S.C. 1341), and federal tax evasion (26 U.S.C. 7201), and are handled in U.S. District Court. Federal cases typically involve larger dollar amounts, interstate activity, or fraud against federal programs. Federal penalties are generally more severe, with mandatory minimum sentences and federal sentencing guidelines that offer less judicial discretion.
White collar crimes require proof of criminal intent — typically intent to defraud or deceive. An honest mistake, an accounting error, or a good faith business decision that turns out to be wrong is not a crime. The prosecution must prove that you acted knowingly and with the specific intent to defraud. If your actions were the result of a misunderstanding, negligence, or poor judgment rather than intentional fraud, you have a strong defense.
Penalties depend on the specific charge and the amount of money involved. Embezzlement of more than $950 can be charged as a felony carrying two to four years in state prison. Theft by false pretenses (PC 532) is also a wobbler. First-time offenders with no criminal history may be eligible for probation, restitution, and community service in lieu of prison. However, cases involving large sums of money or numerous victims are less likely to result in probationary sentences.
Yes. White collar crime investigations often last months or even years before charges are filed. Law enforcement agencies, including the FBI, IRS, SEC, and state investigators, may conduct extensive investigations involving subpoenas, financial audits, interviews, and surveillance. If you learn that you are under investigation, it is critical to contact a defense attorney immediately. Early intervention can sometimes prevent charges from being filed or influence how they are filed.
Yes. A conviction for fraud, embezzlement, or other financial crimes can result in the suspension or revocation of professional licenses, including licenses for attorneys, accountants, real estate agents, financial advisors, doctors, and other regulated professions. Licensing boards typically conduct their own investigations and hearings, and a criminal conviction creates a strong presumption of professional misconduct. A defense attorney can help negotiate outcomes that minimize the impact on your professional standing.
