24/7 call for a free consultation 212-300-5196

AS SEEN ON

EXPERIENCEDTop Rated

YOU MAY HAVE SEEN TODD SPODEK ON THE NETFLIX SHOW
INVENTING ANNA

When you’re facing a federal issue, you need an attorney whose going to be available 24/7 to help you get the results and outcome you need. The value of working with the Spodek Law Group is that we treat each and every client like a member of our family.

Client Testimonials

5

THE BEST LAWYER ANYONE COULD ASK FOR.

The BEST LAWYER ANYONE COULD ASK FOR!!! Todd changed our lives! He’s not JUST a lawyer representing us for a case. Todd and his office have become Family. When we entered his office in August of 2022, we entered with such anxiety, uncertainty, and so much stress. Honestly we were very lost. My husband and I felt alone. How could a lawyer who didn’t know us, know our family, know our background represents us, When this could change our lives for the next 5-7years that my husband was facing in Federal jail. By the time our free consultation was over with Todd, we left his office at ease. All our questions were answered and we had a sense of relief.

schedule a consultation

Blog

The Safety Valve for White Collar and Financial Crimes: Qualifying Exceptions

March 21, 2024 Uncategorized

The Safety Valve for White Collar and Financial Crimes: Qualifying Exceptions

For those facing charges for white collar or financial crimes like fraud or embezzlement, the prospect of years or even decades in prison can be daunting. However, there are certain exceptions in the law, like the “safety valve,” that allow judges more discretion in sentencing for qualifying defendants. This article will break down when and how the safety valve can apply to white collar crimes.

What is the Safety Valve?

The safety valve is a provision in federal sentencing guidelines that allows judges to hand down sentences below the mandatory minimums prescribed by law, if certain conditions are met. It was originally only applicable to certain drug offenses when it was enacted in 1994, but the First Step Act signed into law in 2018 expanded it to apply to more drug crimes and some non-violent crimes as well.The main purpose of the safety valve is to give judges more discretion in sentencing those with minor roles in criminal activity, versus kingpins and organizers. It also incentivizes defendants to cooperate fully with prosecutors. For any defendant facing long mandatory minimum sentences under federal guidelines, qualifying for the safety valve can mean years less prison time.

Safety Valve Conditions

For a defendant to qualify for the safety valve exception in sentencing, they must meet all five of the following conditions:

  1. The defendant has little to no prior criminal history (no more than 4 criminal history points under federal guidelines).
  2. The defendant did not use violence or threats, or possess a dangerous weapon like a firearm during the crime.
  3. If convicted of a drug crime, the offense did not result in death or serious bodily injury.
  4. The defendant was not an organizer or leader in the criminal activity – their role was minor.
  5. The defendant has truthfully provided all evidence and information about the crime to prosecutors. This usually involves sitting down for a “safety valve proffer,” answering all questions from prosecutors fully and honestly.

If any one of these conditions is not met, the defendant will not qualify for safety valve exceptions at sentencing.

How the Safety Valve Applies to White Collar Crimes

When the First Step Act expanded eligibility for the safety valve in 2018, it opened up the possibility for its application to more white collar and financial crimes. However, legal experts note that it will still only apply to a minority of such cases.The main barriers are the conditions about not playing an organizing or leadership role, and having to fully disclose details of the crime. For complex fraud schemes and embezzlement conspiracies that can go on for years, it may be impossible for one defendant to provide the level of information required, especially if they were a key player.However, the expansion of the safety valve does offer hope for some first-time, low-level white collar offenders who made foolish mistakes but were not criminal masterminds, like:

  • Junior employees ordered by bosses to falsify financial statements
  • Accountants or bankers who got caught up in fraudulent schemes they did not organize
  • Money mules unaware of the full operations of drug or fraud conspiracies
  • Bit part players in non-violent schemes who can fully disclose their own roles

For these types of offenders facing serious charges for the first time, with no prior records, qualifying for the safety valve can mean avoiding extremely long sentences of 10+ years in favor of just months or a few years behind bars.An experienced federal criminal defense lawyer will know how to approach the safety valve proffer session, ensuring prosecutors see the defendant played a truly minor role in the conspiracy and has provided full disclosure within their knowledge. This can then convince prosecutors to agree the defendant meets safety valve conditions.

Will the Safety Valve Apply Retroactively?

A common question is whether the 2018 expansion of the safety valve will apply retroactively to those already serving long sentences for white collar crimes under old guidelines. Unfortunately, per the text of the First Step Act itself, these changes are explicitly not retroactive. The safety valve expansion only applies to convictions entered from the date the Act went into effect onward.However, the Act did also include a provision allowing prisoners to petition courts for re-evaluation of sentences based on changes to guidelines during their incarceration. So there is a mechanism for those already serving long white collar sentences to request re-sentencing under new safety valve rules. An attorney can file these petitions on a prisoner’s behalf. But it will be up to the judge’s discretion whether to apply new standards retroactively.

Christine Twomey
Christine Twomey
2024-03-21
Just had my Divorce case settled 2 months ago after having a horrible experience with another firm. I couldn’t be happier with Claire Banks and Elizabeth Garvey with their outstanding professionalism in doing so with Spodek Law Group. Any time I needed questions answered they were always prompt in doing so with all my uncertainties after 30 yrs of marriage.I feel from the bottom of my heart you will NOT be disappointed with either one. Thanks a million.
Brendan huisman
Brendan huisman
2024-03-18
Alex Zhik contacted me almost immediately when I reached out to Spodek for a consultation and was able to effectively communicate the path forward/consequences of my legal issue. I immediately agreed to hire Alex for his services and did not regret my choice. He was able to cover my case in court (with 1 day notice) and not only was he able to push my case down, he carefully negotiated a dismissal of the charge altogether. I highly recommend Spodek, and more specifically, Alex Zhik for all of your legal issues. Thanks guys!
Guerline Menard
Guerline Menard
2024-03-18
Thanks again Spodek law firm, particularly Esq Claire Banks who stood right there with us up to the finish line. Attached photos taken right outside of the court building and the smile on our faces represented victory, a breath of fresh air and satisfaction. We are very happy that this is over and we can move on with our lives. Thanks Spodek law 🙏🏼🙏🏼🙏🏼🙏🏼🙌🏼❤️
Keisha Parris
Keisha Parris
2024-03-15
Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.
Taïko Beauty
Taïko Beauty
2024-03-15
I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence. Thank you team!
Anthony Williams
Anthony Williams
2024-03-12
Hey, how you guys doing? Good afternoon my name is Anthony Williams I just want to give a great shout out to the team of. Spodek law group. It is such a honor to use them and to use their assistance through this whole case from start to finish. They did everything that they said they was gonna do and if it ever comes down to it, if I ever have to use them again, hands-down they will be the first law office at the top of my list, thank you guys so much. It was a pleasure having you guys by my side so if you guys ever need them, do not hesitate to pick up the phone and give them a call.
Loveth Okpedo
Loveth Okpedo
2024-03-12
Very professional, very transparent, over all a great experience
Bee L
Bee L
2024-02-28
Amazing experience with Spodek! Very professional lawyers who take your case seriously. They treated me with respect, were always available, and answered any and all questions. They were able to help me very successfully and removed a huge stress. Highly recommend.
divesh patel
divesh patel
2024-02-24
I can't recommend Alex Zhik and Spodek Law Firm highly enough for their exceptional legal representation and personal mentorship. From the moment I engaged their services in October 2022, Alex took the time to understand my case thoroughly and provided guidance every step of the way. Alex's dedication to my case went above and beyond my expectations. His expertise, attention to detail, and commitment to achieving the best possible outcome were evident throughout the entire process. He took the time to mentor me, ensuring I understood the legal complexities involved to make informed decisions. Alex is the kind of guy you would want to have a beer with and has made a meaningful impact on me. I also want to acknowledge Todd Spodek, the leader of the firm, who played a crucial role in my case. His leadership and support bolstered the efforts of Alex, and his involvement highlighted the firm's commitment to excellence. Thanks to Alex Zhik and Todd Spodek, I achieved the outcome I desired, and I am incredibly grateful for their professionalism, expertise, and genuine care. If you're in need of legal representation, look no further than this outstanding team.

Lawyers You Can Trust

Todd Spodek

Founding Partner

view profile

RALPH P. FRANCHO, JR

Associate

view profile

JEREMY FEIGENBAUM

Associate Attorney

view profile

ELIZABETH GARVEY

Associate

view profile

CLAIRE BANKS

Associate

view profile

RAJESH BARUA

Of-Counsel

view profile

CHAD LEWIN

Of-Counsel

view profile

Criminal Defense Lawyers Trusted By the Media

schedule a consultation
Schedule Your Consultation Now