CPAs can be charged with several white collar crimes, such as fraud, embezzlement, and money laundering. These illegal acts often involve deceit or concealment. A conviction can severely damage your hard-earned professional reputation and mean serious fines and prison time.
If you are an accountant facing white collar crime allegations, you need an experienced criminal defense attorney. Rest assured that a skilled CPA defense lawyer can help you navigate this difficult time in your life and help you seek the best outcome in your case.
What Are CPA White Collar Crime Charges?
Some common CPA white collar criminal offenses include:
- Embezzlement – Embezzlement can occur when you have access to a client’s financial information. It often involves manipulating the client’s financial records to hide your actions, including altering financial statements, creating false invoices, and diverting money to your personal accounts. You may be charged with embezzlement if you intentionally misappropriate client funds for personal gain.
- Fraud – If you intentionally falsify financial records to gain some monetary advantage, you could be charged with accounting fraud. Under federal law, accountants must maintain and file accurate corporate financial records. You can face charges if you fail to follow the relevant rules and regulations concerning financial reporting. Some examples of accounting fraud include under– or overstating revenue, misstating assets and liability, overvaluing company assets, and money laundering.
- Misrepresentation in financial reporting – Misrepresentation occurs if you misstate or omit information in your client’s financial statements to deceive the client’s investors. Sometimes referred to as “financial statement fraud,” the goal is often to make the client’s company appear more profitable. Sometimes, such misrepresentation is used to hide evidence of other financial crimes, such as embezzlement.
- Tax evasion or avoidance schemes – If you engage in tax evasion or avoidance, you could face criminal charges. You could be found guilty of tax evasion if you intentionally avoid paying taxes owed to the government by underreporting income or hiding money in accounts overseas. Additional examples of tax evasion are claiming false deductions and not filing your client’s tax returns.
You may be accused of these criminal charges in the course of your professional duties because you have access to your clients’ accounts and financial records. As their CPA, you have a fiduciary responsibility to act in your client’s best interest. These alleged criminal acts are a serious violation of that fiduciary duty and the trust instilled in you by your clients. Because of the severity of the consequences if you are found guilty of any of these charges, having an experienced white collar crime defense attorney shortly after the charges are filed is crucial to your defense and preserving your legal rights.
Legal Consequences of CPA White Collar Crimes
The potential penalties and consequences of CPA white collar crimes are serious, highlighting the need for defense counsel with extensive experience in this practice area. If you are convicted of a white collar crime, you are subject to significant fines and prison time. Some of the potential penalties for the following crimes include:
- Embezzlement – Under New Jersey law, the penalty for second-degree embezzlement (if the sum embezzled is between $75,000 and $500,000) is up to a $150,000 fine and a 10-year prison sentence. You can also be charged with multiple counts of embezzlement, increasing the potential penalties.
- Fraud – While the possible consequences for tax fraud depend on the specific type of fraud, you will likely be charged with a felony. You are subject to substantial fines and multiple years in prison if convicted.
- Misrepresentation in financial reporting – In New Jersey, falsifying a financial statement is a third-degree crime, punishable by a fine of up to $15,000 and a prison sentence of up to five years.
- Tax evasion – You may have to pay the unpaid tax and accrued interest and be fined up to $100,000 for each event. A tax evasion conviction could also mean a prison sentence of up to five years.
In addition to these potential consequences, you could lose your CPA license. Even though white collar crimes are not violent criminal offenses, a conviction can also affect your reputation and personal and professional relationships.
Whether federal or state law applies in your case depends on how the alleged crime occurred. Federal law applies if you violate federal rules or regulations or the crime “crosses” state lines. A federal crime means a federal prosecutor will handle the case and typically has harsher penalties. State law applies if your actions occur within New Jersey. A state prosecutor will file and pursue charges against you.
Building a Strong White Collar Crime Defense
Developing a solid defense against the charges you are facing is best accomplished through the assistance of a skilled and knowledgeable white collar criminal defense attorney. Securing early legal representation is important so your attorney can serve as your advocate throughout the legal process.
Every white collar criminal defense case is different – characterized by different facts and circumstances. Your attorney will carefully analyze your case to build the best defense possible. Some possible steps they may take to prepare your case include the following:
- Reviewing financial records and transactions – Your attorney will request and obtain all pertinent financial records related to the alleged crime. They will carefully analyze the documents for any discrepancies to help bolster your defense. Sometimes, it is necessary to hire a forensic accountant to review and analyze financials if they are particularly complex.
- Identifying weaknesses or inconsistencies in the prosecution’s case – The prosecutor must present evidence to satisfy all the elements of the alleged offense you have been charged with. Your lawyer will seek and present evidence that challenges the supposed evidence the prosecutor has. Depending on the facts of your case, they may argue against the prosecutor’s theories and question the credibility of any witnesses for the prosecution.
- Demonstrating lack of intent or involvement – If the evidence in your case definitively shows that you were not involved in the alleged unlawful activity or had no intent to commit the crime, you may not be convicted of the charges against you.
CPA white collar crimes, including embezzlement and tax fraud, are complex matters requiring a robust defense. We will obtain the available evidence to fight your charges. Because the prosecution’s case often heavily relies on documentation and requires proof of intent, many prosecutors are generally open to avoiding an expensive, time-consuming investigation. We will communicate and negotiate with them early in your case as we pursue your best outcome.
Why Choose the Law Offices of Jonathan F. Marshall?
At the Law Offices of Jonathan F. Marshall, you will benefit from representation by former New Jersey prosecutors and public defenders. With a firm composed of defense attorneys who have worked on both sides, you will have the white collar criminal defense team you need. Jonathan F. Marshall, the firm’s founder and lead attorney, also worked as an accountant before his legal career. He can offer you insights from both fields when working to develop the appropriate defense strategies for your case.
Since 1993, Mr. Marshall has been offering his criminal defense clients a tailored approach to the unique facts and circumstances of their cases. Managing a firm of 15 attorneys with over 200 years of combined experience, he proudly provides the legal advocacy and compassion CPA clients targeted for white collar crimes deserve.
Our client, Mike, had kind words to say about working with Mr. Marshall and his firm:
“Right from the start know this when you hire Jonathan, you don’t just get Jonathan you get a team of lawyers with Jonathan as the leader and responsible for all final decisions regarding directions… If you are fortunate enough to go to Jonathan know that, unlike other lawyers, if they decide to take your case they will fight and fight with everything they have. You will be hiring someone with honesty, integrity and a level of professionalism not often found.”
While past successes do not guarantee future results, you can trust that our firm will work hard for you – regardless of the white collar crimes you are facing. We are well-equipped to handle all your criminal defense needs.
Contact Our New Jersey Criminal Defense Attorneys for Help
Ready for help with your case? Contacting and retaining the Law Offices of Jonathan F. Marshall is your first step to challenging the criminal charges against you. Call our office at the initial sign of an investigation or questions about your business practices.
We understand this may be a difficult time in your life. Let an experienced white collar crime defense lawyer from our firm protect your legal rights, reputation, and accounting career. Contact us today for a free consultation to get started with your case.
