What Are Common White-Collar Crimes in Tennessee?

You may be able to commit a white-collar crime simply behind an office desk, with little to no interaction with others. Even though these acts are non-violent and non-confrontational, others may get seriously hurt in the process. This is because these crimes often involve the use of deceit, misrepresentation, and a breach of trust for wrongful financial gain. With all that being said, please continue reading to learn the most common types of white-collar crimes handled by the Tennessee criminal court and how one of the experienced Montgomery County criminal defense lawyers at Fendley and Birch can help you understand whether you are up against a potential case.

What are the Most Common Types of White-Collar Crimes Seen in Tennessee?

Not to be mistaken, white-collar crime is an umbrella term for varying non-violent crimes that are financially motivated. In the state of Tennessee, the most commonly observed offenses read as follows:

Fraud: This may involve a dishonest means of obtaining money, property, or services from another party (i.e., bank, insurance, healthcare, or securities fraud). Two of the most frequently charged forms have their own pages: credit card fraud and tax fraud.
Embezzlement: This may involve misappropriating assets that you were entrusted with for personal use and gain (i.e., illegal transfers, cooked records, etc).
Money laundering: This may involve taking illegally obtained funds and funneling them through legitimate businesses and financial transactions.
Insider trading: This may involve trading securities based on non-public information to give yourself an unfair advantage over regular investors.
Cybercrime: This may involve obtaining sensitive information that threatens individuals, businesses, and government entities (i.e., identity theft, data breaches, etc). In the event you believe you are facing a mistaken accusation of identity theft, that has its own consequences.

Two of these offenses should be noted, however. Tennessee no longer prosecutes embezzlement or obtaining property by false pretenses as offenses under those names. In accordance with TN Code § 39-14-101, these offenses have been consolidated into a single theft offense as of 1989, and the charges you face ultimately depend on the value of the property involved. The conduct is still criminal; the only thing that has changed is the label of how the offense is charged.

What Counts as Money Laundering in Tennessee?

Under TN Code § 39-14-903(a)(1), money laundering is its own statute, separate from theft or fraud. As such, it is a criminal offense to knowingly use, conspire to use, or attempt to use proceeds derived directly or indirectly from a specified unlawful activity to conduct a financial transaction or to make another disposition, with intent to conceal or disguise the nature, location, source, ownership, or control of the criminally derived proceeds.

Two important elements to note in the definition of this offense:

Proceeds: The proceeds must result from a specific unlawful activity, which is defined under § 39-14-902 as an act committed for financial gain that is punishable by a felony in Tennessee or by more than a year’s confinement
Transaction: The transaction must be undertaken with intent to conceal, which is typically the matter that is contested.

Section 39-14-903(b) also reaches a second route: knowingly using such proceeds with intent to promote the carrying on of a specified unlawful activity, regardless of whether or not anything is concealed.

Common Laundering Methods

Structuring: Breaking a large sum of money into small deposits over time, or transferring it between accounts, ultimately to avoid the reporting that a single, large deposit would trigger
Bulk cash smuggling: Physically moving currency across borders with the intention of obscuring its origins
Money muling: Passing the criminal proceeds of another person through your own accounts on behalf of the other party
Commingling: Blending illegitimate funds into receipts of a cash-intensive business to obscure what assets are legitimate and which are not
Trade-based laundering: Converting illegitimate funds into legitimate goods or investments

Money Laundering Penalties

Any violation of § 39-14-903(a) or (b) will be charged as a Class B felony offense, carrying between eight and 20 years. However, the fine is not the general $25,000 figure often quoted; in accordance with § 39-14-903(f), a violation may be punished by a fine of up to $250,000, or twice the value of the property involved, whichever is greater.

The statute also covers businesses. Under § 39-14-903(d), it is an offense to knowingly conduct a financial transaction involving criminally derived property where a reasonable person would know the property was derived from a specified unlawful activity, and that is a Class E felony punishable only by a fine of up to $5,000 and the forfeiture of the assets involved. As such, under § 39-14-903(e), a business that knowingly uses accounts or assets to handle criminal proceeds on five or more separate occasions commits a separate offense.

Where the underlying activity is a drug offense, expect federal exposure alongside the state charge.

How Do I Know if I’m Being Accused of a White-Collar Crime?

You may not believe that you have behaved or acted in a way that constitutes a white-collar crime. However, especially if you work in a financial industry or otherwise regularly deal with money matters, you must always be on high alert for an accusation to be thrown your way.

For example, banks or other financial institutions may inquire more frequently or adamantly about your transactions. You may notice similarly with your colleagues regarding your work-related tasks, or otherwise, you may detect that they are strangely avoiding interactions with you altogether. All of these may be indications that federal investigators are asking financial institutions for your financial documents or interviewing and questioning your colleagues about you.

Last but not least, the biggest sign is if you ultimately receive a target letter informing you that you are a suspect in a white-collar crime case. In all of these scenarios, it is in your best interest not to answer any questions or respond to any legal notices until you obtain a legal representative.

Contact an Experienced Criminal Defense Attorney Today

In conclusion, if you find yourself in need of legal aid, look no further than one of the skilled Montgomery County criminal defense lawyers. Whether you simply have a legal question or require legal representation in an upcoming court case, our team at Fendley & Birch is willing to help out. Pick up the phone and contact our experienced legal team today.