Fraud allegations are among the most common white-collar crimes. Many fraud cases lead to federal prosecution. Fraudulent financial or business conduct may cross state lines or may make use of crucial federal infrastructure, such as banking systems or telecommunications. Fraud accusations often relate to the work a professional performs.
Those facing fraud charges are at risk of numerous penalties. Many people become so focused on the possibility of incarceration that they may overlook the long-term economic impact of a fraud conviction.
Fraud convictions can be incredibly expensive, even if the defendant never spends a day in prison. There are several ways in which a guilty plea or conviction could negatively affect the finances of the defendant, and the three below are among the most common.
1. Court costs and fines
Criminal defendants who plead guilty or get convicted typically have to cover court costs, which can add up to tens of thousands of dollars. They usually also need to pay fines.
The nature of the charges and the extent of the economic impact that fraudulent activity has had on others can determine the amount of court-imposed fines. Especially when coupled with a sentence of incarceration, fines can be very difficult for those accused of fraud to pay in full.
2. Orders of restitution
Economic crimes tend to have direct consequences for other people. The state can reimburse individuals and businesses harmed by fraudulent activity by holding the person engaged in fraud accountable.
It is common practice for judges to order convicted defendants to pay restitution. They may have to reimburse those affected by fraud for the full amount of the losses they sustained. Orders of restitution are in addition to the fines imposed by the courts.
3. Reduced earning potential
Having a criminal record can create a profound chilling effect on a professional’s career. They may have a very difficult time obtaining a new job. They may become ineligible for professional licensing.
Even if they manage to secure gainful employment after a conviction or maintain their employment despite their conviction, their upward mobility may decrease or disappear entirely because of their criminal conviction.
The only way to defray the various economic consequences of a white-collar criminal conviction is to fight pending charges. Professionals accused of fraud may need help reviewing evidence and developing a defense strategy.