When people are accused of white-collar crimes, they may be subject to complex financial investigations, and the government may use several types of enforcement tools designed to recover money or property obtained illegally. Asset forfeiture is one of the most powerful tools, but it is also highly controversial. The government may take steps to seize money or property that is allegedly connected to criminal activity. In many cases, these seizures occur before a person is convicted. By understanding the role that asset forfeiture may play in white-collar crime cases, those affected by this issue can determine their legal options.

White-Collar Crimes Investigated by the Federal Government

White collar crimes are typically non-violent offenses that involve deceit or breaches of trust and the theft or misappropriation of money or property. They can be prosecuted under a wide range of federal statutes. The most common types of white collar crimes investigated and prosecuted by federal authorities include:

• Fraud: This broad category encompasses wire fraud, mail fraud, bank fraud, securities fraud, mortgage fraud, and health care fraud.
• Embezzlement: This offense involves the misappropriation of funds or property by someone who has been entrusted to manage assets for another person. It often occurs in corporate or business settings, and a person may be accused of diverting funds or stealing property belonging to their employer.
• Money Laundering: The origins of illegally obtained money may be concealed by transferring it through complex financial transactions or legitimate businesses. This offense may involve money earned through illicit activities such as drug trafficking, fraud, or other forms of criminal activity.
• Insider Trading: This form of securities fraud involves buying or selling securities based on material, nonpublic information about a company.
• Tax Evasion: Intentionally underreporting or concealing income to avoid paying taxes may lead to investigations by the Internal Revenue Service (IRS) and prosecution for tax fraud.
• Public Corruption: Bribery, kickbacks, and other unlawful acts committed by public officials for personal gain can lead to investigations and criminal charges.
• Cybercrime: Financially motivated hacking, identity theft, or online fraud schemes that exploit digital systems for profit may lead to criminal prosecution.

Federal agencies, such as the Federal Bureau of Investigation (FBI), the Securities and Exchange Commission (SEC), and the Department of Justice (DOJ), often collaborate in these cases, utilizing financial records, digital evidence, and asset tracing to build their investigations.

The Role of Asset Forfeiture in White Collar Crime Cases

Asset forfeiture is meant to serve as both a deterrent and a means of restitution. The government may use forfeiture to prevent people from profiting from illegal conduct and to return assets to victims when possible. There are two primary forms of asset forfeiture:

• Criminal Forfeiture: After a defendant is convicted of a crime, the forfeiture of assets may be part of the sentencing process. In these cases, the property seized must be connected to the offense for which the person was convicted.
• Civil Forfeiture: This type of forfeiture may be handled independently of criminal prosecution. The government will take legal action against the property itself, alleging that it is linked to criminal activity. Assets may be confiscated even if a person is not charged or convicted of a crime.

In white-collar cases, civil forfeiture may be used to freeze assets early in an investigation to ensure that funds will not be moved or concealed before the case is resolved.

Reasons the Government May Seize Assets

The federal government may take steps to confiscate assets for several reasons related to white collar investigations:

• Proceeds of Illegal Activity: The government may seize assets believed to have been obtained through fraudulent or unlawful conduct.
• Property Used to Commit a Crime: Items such as computers, bank accounts, or vehicles used to carry out crimes may be seized.
• Assets Needed for Restitution: Money or property may be confiscated to compensate victims of fraud or other crimes that have resulted in financial losses.
• Preventing Concealment or Transfer: Assets may be seized to stop suspects from hiding or transferring funds while a case is pending.

Types of Assets That May Be Subject to Forfeiture

The scope of property that can be seized in a white collar case is broad, and it may include anything of value that is connected to alleged misconduct. Common examples of assets that may be seized by the government include:

• Financial Accounts: Bank accounts, investment portfolios, or cryptocurrency holdings that are allegedly tied to illegal transactions may be confiscated.
• Real Estate: Homes, office buildings, or commercial properties that were allegedly purchased with illicit funds or that were allegedly used to facilitate criminal conduct may be seized.
• Vehicles and Aircraft: Cars, boats, or planes used in schemes to transport materials or conduct business operations related to fraud may be confiscated.
• Valuables and Luxury Items: Jewelry, artwork, collectibles, and other high-value items purchased with proceeds from illegal activities may be subject to forfeiture.
• Cash and Negotiable Instruments: Physical currency, cashier’s checks, or money orders may be seized during investigations. In some cases, law enforcement officials may view large amounts of cash in a person’s possession as an indication that a person has engaged in criminal activity, even if there is no other evidence that a crime has occurred.

In some cases, the government may freeze accounts or place liens on property before formally seizing assets. This can effectively restrict access to personal or business assets and serve as a precursor to the seizure of property.

Legal Options Following Asset Seizure

For people or entities whose property has been seized in connection with a federal white collar case, several legal avenues may be available to challenge or mitigate the forfeiture:

• Filing a Claim in Forfeiture Proceedings: A person may contest the government’s seizure of their property by asserting ownership and arguing that the property was lawfully acquired and was not connected to criminal conduct.
• Requesting a Remission or Mitigation: The Department of Justice may return property or reduce the scope of forfeiture in cases where the owner can demonstrate that they are not culpable for financial losses related to white-collar crimes.
• Asserting an Innocent Owner Defense: A person who had no knowledge of or involvement in the alleged crime may argue that they should not lose their property.
• Negotiations With Prosecutors: In criminal forfeiture cases, a defendant may seek to limit forfeiture as part of plea negotiations.
• Challenging Pretrial Asset Forfeiture: A defendant may petition the court to release funds necessary to cover their living expenses or pay for legal representation.

The process for contesting forfeiture can be complex. Courts typically require the government to establish a connection between the seized property and the alleged criminal activity. The burden will then shift to the property owner to prove that the assets in question were acquired lawfully.

Legal Help With Asset Forfeiture

Asset forfeiture is a complex topic that may involve issues related to criminal justice and financial regulation. When a person’s assets have been seized or they are unable to access their assets because their accounts have been frozen, they will need to understand what steps they can take to address this issue. An experienced asset forfeiture defense attorney can provide guidance on the best ways to address the legal issues involved in these cases and represent a person in legal proceedings as they take steps to recover their assets.

Disclaimer: The content provided in this article is for informational purposes only and should not be considered legal advice. Asset forfeiture laws and the government’s ability to seize property in white-collar crime cases can vary based on individual circumstances and jurisdiction. Readers are encouraged to seek personalized guidance from qualified legal professionals to understand their rights and options in asset forfeiture cases.