Embezzlement, Tax Evasion and Other White Collar Crimes in Florida
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Embezzlement, Tax Evasion and Other White Collar Crimes in Florida
White collar crime is a big problem in Florida. With the state’s large population, tourism industry, and many businesses, there are ample opportunities for people to commit non-violent crimes for financial gain. Some of the most common white collar crimes in Florida include embezzlement, tax evasion, insurance fraud, identity theft, money laundering, and Ponzi schemes.
Embezzlement
Embezzlement involves stealing money or assets from an employer. It often involves someone in a position of financial trust, like an accountant, banker, or financial advisor. Common schemes include creating fake vendors and billing the company for services that were never provided, or simply transferring funds from the company account to a personal account.
Florida has seen many high-profile embezzlement cases over the years. In one infamous example, the former city manager of Bell, Florida was convicted of embezzling over $5 million from the small town of just 1,300 residents. He had opened secret bank accounts and transferred city funds into them for over a decade before getting caught.
Penalties for embezzlement in Florida depend on the amount stolen. Embezzling between $300 – $20,000 is a third-degree felony with up to five years in prison. Embezzling over $100,000 becomes a first-degree felony with up to 30 years in prison. Restitution is also required.
Tax Evasion
Tax evasion involves illegally avoiding paying owed taxes. Common schemes include not reporting income, inflating deductions, hiding money in offshore accounts, using fake Social Security numbers, and more.
Florida loses billions in unpaid taxes each year due to evasion. The state pursues both civil and criminal charges for tax evasion depending on the circumstances. Felony tax evasion over $50,000 in Florida can result in 30 years in prison and $10,000 in fines.
One recent tax evasion case involved a Tampa businessman who was convicted of claiming fake tax losses to avoid over $2 million in federal taxes. He was sentenced to over 3 years in prison and forced to pay back the unpaid taxes plus interest and penalties.
Insurance Fraud
Insurance fraud costs Floridians big – over $1 billion per year according to estimates. Staged auto accidents, faked injuries, inflated damage claims, and healthcare fraud are some common schemes. Florida’s large elderly population also makes them vulnerable to certain insurance scams.
Florida has strong laws punishing insurance fraud. Even small cases under $500 incur felony charges. Larger fraud over $50,000 is a first-degree felony with severe penalties – 30 years in prison and up to $10,000 in fines. Restitution is also required.
One recent bust involved nearly 20 people arrested for staging car crashes with unsuspecting drivers in order to file injury claims and collect insurance payouts. The complex scheme resulted in over $200,000 in fraudulent claims before authorities uncovered it.
Identity Theft
With its large population and popularity as a vacation destination, Florida sees thousands of identity theft cases each year. Criminals steal personal information like Social Security numbers, bank account details, and credit card numbers to open fraudulent accounts or make unauthorized purchases.
Florida was one of the first states to pass strong identity theft laws. Possession of identity theft tools like stolen account numbers or fake IDs is a third-degree felony. Fraudulently using someone’s personal information for over $5,000 is a second-degree felony.
In one recent Florida case, a tax preparer was convicted of using client’s personal information to file over $400,000 in fraudulent tax returns and pocketing the refunds. She was sentenced to 14 years in prison and ordered to pay back the money.
Money Laundering
Money laundering hides the source of illegally obtained money by funneling it through legitimate businesses to make it appear legal. Common techniques include smurfing, over/under invoicing, shell companies, and offshore accounts.
As an international travel and banking hub, Florida is vulnerable to money laundering schemes. The state passed the Florida Money Laundering Act in 1986 to combat it. Money laundering over $100,000 is a first-degree felony in Florida punishable by up to 30 years in prison.
Miami has been dubbed the “capital of money laundering” for all the illicit funds flowing through its banks and businesses. Everything from drug trafficking to Medicare fraud generates dirty money that criminals seek to launder in Florida. Authorities uncover complex networks annually, like one Miami scheme that laundered $1.2 billion for cartels.
Ponzi Schemes
Ponzi schemes use money from new investors to pay earlier investors high returns, making it seem like a legitimate investment. But eventually the scheme collapses when it runs out of money. Florida’s large elderly population has made it a prime target for Ponzi schemes offering guaranteed high returns.
Florida passed laws specifically targeting Ponzi schemes with harsh penalties. Running a Ponzi scheme over $50,000 is a first-degree felony with up to 30 years prison, and they must pay back double the stolen amount.
Infamous Florida Ponzi schemer Scott Rothstein was convicted of running a $1.2 billion scheme. He convinced investors they were buying legal settlements that turned out to be fake. He used new money to pay old investors and maintain the facade while he lived lavishly. Rothstein is currently serving 50 years in prison.
Defense Against White Collar Charges
Facing white collar crime charges in Florida can be overwhelming. While non-violent, prosecutors still pursue heavy prison sentences and penalties. Those accused of embezzlement, tax evasion, fraud, or other financial crimes need an experienced defense attorney.
An attorney can evaluate the evidence and build a strong defense to get charges reduced or dismissed. For example, they may argue you lacked criminal intent, were entrapped, or have an explanation for the suspicious funds. In tax cases they can negotiate more favorable tax repayment terms.I
t’s also critical to have an attorney involved before speaking to investigators. Anything you say can be used against you, so it’s important to avoid self-incrimination. An attorney can handle communication and put your case in the best light.
Conclusion
White collar crime is rampant in Florida, costing individuals and businesses billions annually. Strong laws and penalties exist to deter these non-violent but costly financial crimes. Anyone facing charges like embezzlement, tax evasion, fraud, money laundering, or running a Ponzi scheme needs an experienced criminal defense attorney to protect their rights and build the strongest defense. With an attorney’s help many people avoid lengthy prison sentences and are able to move on with their lives.