Financial Crimes Explained: State and Federal
At Schrameck Law, P.L.L.C., based in Canton, Michigan, I represent clients nationwide in matters involving Federal Employment Law, MSPB Appeals, Federal Law Enforcement Agency Disciplinary Defense, the U.S. Merit Systems Protection Board, Security Clearance, and Criminal Defense.
Our experience has shown how allegations of financial crimes can jeopardize careers, reputations, and even security eligibility. Financial crime investigations often begin long before an individual is aware they're a target. Federal agencies such as the FBI, IRS, or SEC may conduct extensive surveillance, financial audits, and interviews to build their case.
By the time charges are filed, the government has often gathered substantial evidence, making it essential to have a strong defense strategy in place from the start.
Because these charges carry life-changing consequences, it's critical to understand how state and federal laws apply, how investigations unfold, and what defense strategies may be available. If you're under investigation or facing charges, now is the time to seek skilled legal counsel. Contact my firm, Schrameck Law, P.L.L.C., today to protect your future.
What's Considered a Financial Crime?
Financial crimes are broadly defined as non-violent offenses committed for monetary gain. At the state level, this may include check fraud, credit card abuse, or embezzlement from a local employer. Federally, offenses expand to securities fraud, wire fraud, bank fraud, tax evasion, and money laundering.
The same act may fall under both state and federal jurisdiction. For example, a fraudulent transaction that crosses state lines or uses interstate communications such as email or phone calls often becomes a federal matter. Crimes involving federally insured banks or government funds almost always invite federal prosecution.
Determining whether a case will be pursued in state or federal court is crucial. The rules of evidence, sentencing guidelines, and plea options differ dramatically depending on jurisdiction, shaping the defense strategy from the outset.
How Are Financial Crimes Investigated?
Investigations may be initiated by local police, state agencies, or federal entities like the FBI, IRS Criminal Investigations, or the U.S. Secret Service. These agencies often collaborate, sharing intelligence to strengthen their case.
State investigations might focus on reviewing bank records, interviewing witnesses, and issuing search warrants. Federal investigations tend to be broader, using forensic accounting, subpoena power, and grand juries to follow money flows over long periods.
Financial crime investigations often last months or even years before charges are filed. Many individuals are unaware they're under scrutiny. Learning of an investigation should prompt immediate legal representation.
The penalties for financial crimes can be severe, ranging from hefty fines and restitution orders to lengthy prison sentences. Beyond the courtroom, convictions can destroy careers, damage personal relationships, and create lasting financial hardship. Early intervention by skilled counsel can make a critical difference in outcome.
In many cases, negotiating with prosecutors or pursuing alternative resolutions may help minimize exposure to the harshest penalties. At Schrameck Law, P.L.L.C., I focus on protecting my clients’ rights at every stage, from investigation to trial, while seeking the most favorable resolution possible.
Penalties and Collateral Consequences
Penalties vary depending on the amount of money, the number of victims, and whether the case is prosecuted in state or federal court. State-level offenses may result in fines, restitution, probation, or short jail terms. Federal convictions often carry much longer prison sentences and steeper fines.
Beyond criminal penalties, collateral consequences can be equally severe. A conviction may result in:
Loss of professional licenses: Many regulated industries revoke credentials after a conviction. This can effectively end a career in fields such as law, healthcare, or finance.
Ineligibility for jobs or contracts: Employers often disqualify applicants with financial crime histories. This barrier can persist long after a sentence is served, limiting future economic opportunities.
Security clearance issues: Clearance may be denied or revoked, ending certain careers. Without clearance, individuals may be barred from working in defense, intelligence, or government sectors.
Damage to reputation and credit: Personal and professional relationships may be permanently affected. A tarnished reputation can hinder networking, business prospects, and access to housing or loans.
For federal employees, these outcomes may also trigger disciplinary actions, MSPB Appeals, or agency-level consequences. Defense strategies must address both the criminal matter and the broader impact on a client’s livelihood.
State vs. Federal Prosecution
At the state level, financial crimes are charged by local prosecutors, and cases proceed in state court. Sentencing may allow flexibility, including diversion programs for first-time offenders.
Federal cases are handled by the U.S. Department of Justice and often involve indictments from a grand jury. Federal Sentencing Guidelines generally impose harsher penalties, and prosecutors typically pursue only strong cases with a high chance of conviction.
This makes early, aggressive defense especially important in federal matters.
Common Defense Strategies in Financial Crime Cases
Each case is unique, but several defenses often apply in financial crime cases:
Lack of intent: Demonstrating the absence of fraudulent intent can weaken the prosecution’s case.
Insufficient evidence: Attacking gaps or flaws in evidence may result in dismissal or reduced charges.
Mistaken identity: In digital cases, proving another party was responsible can serve as a complete defense.
Procedural violations: Evidence obtained through unlawful searches or seizures can be suppressed.
For federal employees, defense must also align with employment law strategies to minimize professional consequences.
The Overlap With White-Collar Crime
White-collar crimes are a subset of financial crimes, typically involving professionals, executives, or public officials abusing their positions for financial gain. While all white-collar crimes involve finances, not every financial crime falls into this category.
For instance, a corporate CFO embezzling funds is a classic white-collar case. By contrast, retail credit card fraud by an individual may not be labeled “white-collar,” but it's still a financial crime.
For federal employees, this distinction is significant. Even unproven allegations of white-collar crimes may threaten employment and Security Clearance, making proactive defense essential.
Steps to Take If Under Investigation
If you believe you're being investigated for financial crimes, take the following steps:
Don't speak to investigators without counsel: Anything said may be used against you.
Preserve evidence: Keep financial records, emails, and related documents.
Avoid casual discussions about the case: Even private conversations can be misinterpreted.
Engage legal representation early: Prompt action may prevent charges or lead to more favorable resolutions.
Federal employees should also consult counsel familiar with employment-related defense to protect their careers.
Secure a Strong Defense
Financial crime allegations demand immediate, strategic legal action. The stakes extend beyond fines and prison time to careers, reputations, and future opportunities.
At Schrameck Law, P.L.L.C., based in Canton, Michigan, I represent clients nationwide in criminal defense, Federal Employment Law, MSPB Appeals, Security Clearance, and Federal Law Enforcement Agency Defense. I understand what's at risk and develop tailored defense strategies to safeguard both legal and professional outcomes.
If you're under investigation or have been charged, don't delay. Contact me, Attorney Jeffrey Schrameck, today to schedule a confidential consultation and begin protecting your future.