Skip to content 
White-collar crime in Texas involves a range of non-violent financial offenses, including fraud, embezzlement, insider trading, and money laundering. These crimes are typically committed by business professionals, government employees, or individuals in positions of trust who use deception to gain financial advantage. Rather than physical force, white-collar offenders manipulate financial systems, falsify records, or exploit digital transactions to steal money or assets. Despite lacking violence, these crimes carry serious consequences in Texas, including steep fines, restitution, and lengthy prison sentences. Understanding what constitutes white-collar crime is essential for both individuals and businesses—not only to prevent legal missteps, but also to recognize and report financial misconduct before it leads to significant harm.
What Is a White-Collar Crime in Texas?
White-collar crimes involve financial fraud, deception, or other nonviolent offenses committed for financial gain. These crimes often happen in business or government settings, where individuals misuse their positions for personal benefit. Texas law treats white-collar offenses seriously, and those convicted can face severe penalties, including hefty fines and prison time.
Common Types of White-Collar Crimes
Texas law classifies various financial offenses as white-collar crimes. Some of the most common include:
Fraud
Fraud covers a wide range of deceptive practices meant to gain money, services, or property. Common types include:
- Insurance fraud – Providing false information to receive payouts
- Credit card fraud – Using stolen or fake credit cards for purchases
- Securities fraud – Manipulating stock markets or misleading investors
- Mortgage fraud – Lying on loan applications to obtain home financing
Embezzlement
Embezzlement happens when someone misuses funds entrusted to them. A common example involves employees stealing money from a business. The severity of the charge depends on the amount stolen.
Money Laundering
Money laundering hides the origins of illegally obtained money. Criminals use businesses, shell companies, or financial transactions to make funds appear legitimate. Law enforcement agencies closely monitor financial activity to detect suspicious transactions.
Bribery
Bribery occurs when someone offers, gives, or accepts something of value in exchange for influence or a favor. In Texas, bribery charges apply to both public officials and private individuals involved in corrupt dealings.
Identity Theft
Identity theft involves using someone else’s personal information to commit fraud. This crime includes stealing Social Security numbers, bank details, or credit card information to open accounts or make purchases. Texas law punishes identity theft harshly, especially when it involves large financial losses or multiple victims.
How Texas Classifies White-Collar Crimes
Texas law determines penalties based on the amount of money involved and the level of deception. Charges range from misdemeanors to felonies, with harsher sentences for larger financial losses.
- Misdemeanor – Crimes involving smaller amounts of money can result in fines and short jail sentences.
- State Jail Felony – Theft or fraud involving amounts between $2,500 and $30,000 carries up to two years in a state jail.
- Third-Degree Felony – Crimes involving $30,000 to $150,000 can lead to two to ten years in prison.
- Second-Degree Felony – Financial losses between $150,000 and $300,000 result in two to 20 years behind bars.
- First-Degree Felony – White-collar crimes involving over $300,000 carry a prison sentence of five to 99 years.
Legal Defenses Against White-Collar Crime Charges
Defendants facing white-collar crime charges can challenge accusations in several ways. Common defenses include:
Lack of Intent
Prosecutors must prove that the accused knowingly committed fraud or deception. If someone made an honest mistake or had no intent to deceive, the charges may not hold up in court.
Insufficient Evidence
The prosecution must present strong evidence to secure a conviction. If the defense can show gaps or weaknesses in the evidence, the case may not proceed.
Coercion or Duress
Some individuals commit financial crimes under pressure from others. If someone can prove they acted due to threats or coercion, the court may consider a lesser charge or dismissal.
Entrapment
Law enforcement must follow strict guidelines when investigating financial crimes. If authorities pressure someone into committing a crime they wouldn’t have done otherwise, the defense can argue entrapment.
Penalties and Long-Term Consequences
A white-collar crime conviction affects more than just finances. It can impact careers, reputations, and future opportunities. Common consequences include:
- Prison time – Sentences range from months to decades, depending on the offense.
- Fines – Convictions often come with steep financial penalties.
- Restitution – Courts may require offenders to repay victims for financial losses.
- Professional consequences – Many individuals lose jobs or professional licenses after a conviction.
- Permanent criminal record – White-collar crime convictions can make it difficult to find work or secure loans.
How Law Enforcement Investigates White-Collar Crimes
Authorities use various methods to track and prosecute financial crimes. They rely on:
- Financial records – Investigators review bank statements, tax filings, and accounting records.
- Electronic evidence – Emails, texts, and digital transactions often serve as key evidence.
- Witness testimony – Employees, business partners, and victims provide statements in court.
- Undercover operations – Law enforcement may conduct sting operations to catch fraudulent activity.
Steps to Take When Facing White-Collar Crime Charges
Anyone accused of a financial crime should act quickly to protect their rights. Key steps include:
- Consulting an attorney – A legal expert can guide the accused through the legal process.
- Gathering documentation – Collecting financial records, emails, and other evidence can help build a defense.
- Avoiding discussions – Speaking to law enforcement without legal counsel can harm a case.
- Understanding legal options – Knowing possible defenses and outcomes helps in making informed decisions.
Final Thoughts
In Texas, white-collar crimes come with severe legal and financial consequences that can follow a person for life. Those convicted may face substantial fines, lengthy prison terms, and irreparable harm to their personal and professional reputations. Whether the charge involves fraud, embezzlement, or another financial offense, swift legal action is essential. Consulting an experienced attorney at the earliest stage can make a critical difference in building a strong defense, safeguarding rights, and minimizing long-term damage.
Other Related Articles
- A Strange Financial Fraudster
- What is the Statute of Limitations?
- Thomas Clasby Daring Embezzlement Of A Public Service
- Criminal Homicide: And All it Entails
- The Criminal Process Guide
- The Different Types of Criminal Trials
- What to Look for in a Criminal Defense Lawyer in Texas
- Criminal Offense or Case Dismissal??
- How Much Does it Cost to Hire a Criminal Defense Attorney?
- Winning custody of your child with a criminal conviction
- Punishment Range for Crimes in Texas?
- Arson In Texas
- Texas Drug Offenses
- The Ins and Outs of Plea Bargaining in Texas Criminal Cases
FAQ: White-Collar Crime in Texas
White-collar crime refers to non-violent, financially motivated offenses committed by individuals, businesses, or government officials. These crimes typically involve deceit, fraud, or breach of trust and can include offenses such as embezzlement, insider trading, money laundering, tax evasion, and various types of fraud.
One example of a white-collar crime is securities fraud, also known as insider trading. This occurs when someone with non-public, material information about a company’s stock trades on that information, violating their fiduciary duty or other relationship of trust. Insider trading undermines investor confidence in the fairness and integrity of the securities market.
One of the most common white-collar crimes is fraud, which is a broad category that encompasses various deceptive practices. Fraud can include credit card fraud, identity theft, healthcare fraud, mortgage fraud, and tax fraud, among others. These crimes typically involve the use of deception or misrepresentation to obtain money or property from others.
Penalties for white-collar crimes in Texas can vary depending on the severity and specific nature of the offense. Consequences can range from fines and restitution to probation, community service, and imprisonment. In some cases, white-collar crime convictions may also result in forfeiture of assets, professional license suspension, or disbarment. The exact penalties depend on the circumstances of each case and the applicable state or federal laws.
