Texas White-Collar Crime Lawyer

State vs. Federal: Where Your Case Will Be Prosecuted

The same underlying conduct can often be charged at either the state or federal level, and the choice of forum profoundly affects the penalties, the procedural rules, and the defense strategy.

State prosecution. Texas Penal Code Chapter 31 (theft), Chapter 32 (fraud), and related statutes govern state-level white-collar crimes. State prosecutions are handled by county district attorneys and heard in Texas state courts. Penalties are determined by the amount of financial loss involved and follow Texas’s felony ladder from state jail felony to first-degree felony. State-level white-collar cases frequently involve embezzlement, check fraud, insurance fraud, and financial crimes that do not involve federal programs or interstate commerce.

Federal prosecution. Federal jurisdiction attaches when the conduct involves interstate electronic communications (wire fraud, 18 U.S.C. §1343), use of the postal system (mail fraud, 18 U.S.C. §1341), federally insured financial institutions (bank fraud, 18 U.S.C. §1344), federal programs (healthcare fraud, 18 U.S.C. §1347; loan fraud, 18 U.S.C. §1014), or securities markets (18 U.S.C. §1348). Federal cases are investigated by specialized agencies, prosecuted by U.S. Attorneys’ offices, and sentenced under the U.S. Sentencing Guidelines — which produce longer sentences than state law for comparable financial harm.

Dual prosecution. The same conduct can be charged in both state and federal court without violating the Double Jeopardy Clause, because state and federal governments are separate sovereigns. In practice, major financial crime cases are usually resolved in one system — but the possibility of parallel prosecution is a factor in defense strategy from the outset.

Texas State White-Collar Charges

Theft and Theft by Check — Texas Penal Code §31.03

Texas defines theft broadly as unlawfully appropriating property with intent to deprive the owner of it. The felony level is determined by the value of the property: state jail felony (2, 500–30,000), third-degree felony (30, 000–150,000), second-degree felony (150, 000–300,000), and first-degree felony ($300,000 or more). Organized retail theft, theft of services, and theft by an employee or fiduciary fall under this framework.

Fraud — Texas Penal Code Chapter 32

Chapter 32 covers a range of fraud offenses including: forgery (§32.21); credit card or debit card abuse (§32.31); making a false statement to obtain property or credit (§32.32); insurance fraud (§32.35); mortgage fraud (§32.32); and money laundering (§34.02). Each has its own elements and penalty structure. Many of these offenses can also be charged federally where the conduct involves interstate commerce.

Embezzlement

Embezzlement is not a separately defined offense in Texas — it is charged as theft under §31.03. What distinguishes embezzlement from ordinary theft is the fiduciary or trust relationship: an employee who diverts company funds, a financial advisor who misappropriates client assets, or a nonprofit officer who redirects donations. The amount embezzled determines the felony level, and the abuse of trust relationship is relevant to both the charge and sentencing.

Money Laundering — Texas Penal Code §34.02

Texas has its own money laundering statute separate from the federal statute. It prohibits acquiring or maintaining an interest in proceeds known to be derived from criminal activity, or conducting a financial transaction with such proceeds. The offense level is based on the value of the proceeds involved.

Federal White-Collar Charges

Detailed analysis of each federal white-collar charge is available on the dedicated sub-pages. A summary of the key statutes and maximum penalties:

• Wire fraud — 18 U.S.C. §1343: Up to 20 years (30 years if a financial institution is affected). The most broadly charged federal fraud statute.
• Mail fraud — 18 U.S.C. §1341: Up to 20 years (30 years if a financial institution is affected).
• Bank fraud — 18 U.S.C. §1344: Up to 30 years and a fine up to $1,000,000.
• Securities fraud — 18 U.S.C. §1348: Up to 25 years.
• Healthcare fraud — 18 U.S.C. §1347: Up to 10 years; 20 years if serious bodily injury results.
• Federal loan fraud — 18 U.S.C. §1014: Up to 30 years.
• Money laundering — 18 U.S.C. §1956/§1957: Up to 20 years (§1956); up to 10 years (§1957).
• Tax fraud — 26 U.S.C. §7201: Up to 5 years.
• Identity theft / aggravated identity theft — 18 U.S.C. §1028/§1028A: 2-year mandatory consecutive sentence added to any underlying federal felony.
• RICO — 18 U.S.C. §1962: Up to 20 years per count. Requires a pattern of racketeering activity through an enterprise.

How White-Collar Cases Are Defended

The intent element. Every white-collar offense — state or federal — requires proof of knowing, willful, or intentional conduct. Business failures are not fraud. Accounting errors are not embezzlement. Reliance on professional advice, good-faith misunderstandings of regulatory requirements, and genuine disputes about contractual obligations are not crimes. The government must prove that the defendant subjectively knew their conduct was unlawful and intended to cause financial harm. This is the element most frequently challenged in white-collar defense, and it is the element where the documentary record most often provides the defense its strongest arguments.

Loss calculation challenges. In both state and federal court, the penalty for a white-collar offense is driven primarily by the amount of financial loss attributed to the defendant. Federal Guidelines sentencing under U.S.S.G. §2B1.1 adds levels based on loss tiers that produce dramatically longer sentences as loss increases. Independently challenging the loss calculation — identifying legitimate transactions included in the government’s figure, disputing the methodology, and presenting alternative calculations — is one of the highest-value defense activities in any financial crime case.

Digital evidence. White-collar prosecutions are built on electronic records: emails, financial transaction data, account records, device contents, and metadata. Doug Huff’s Garrett Discovery forensics training covers authentication, chain of custody, completeness of productions, and attribution requirements for digital evidence under both state and federal rules of evidence. Selective production of email records, incomplete financial data, and attribution questions about electronic communications are all grounds for challenge.

Expert witnesses. The government typically presents a forensic accountant or financial expert to summarize complex financial records and explain the alleged scheme. The defense retains its own experts to independently analyze the same records, challenge the government’s methodology and assumptions, and present alternative explanations for the financial patterns the government characterizes as criminal.

Fourth Amendment challenges. White-collar investigations involve search warrants for financial records, email accounts, and business documents. The scope and execution of those warrants — whether they were sufficiently particular, whether the execution exceeded the stated scope, and whether the affidavit established probable cause — are all subject to challenge. Evidence obtained through an unlawful search may be suppressed, eliminating a significant portion of the government’s case.

Why Deandra Grant Law for White-Collar Defense

30+ years of criminal defense in North and Central Texas. 500+ trials to verdict.

• James Lee Bright — federal white-collar defense. 25+ years of federal trial experience across all four Texas federal districts. Wire fraud, bank fraud, healthcare fraud, tax fraud, securities fraud, money laundering, identity theft, RICO.
• Digital forensics training — Douglas Huff. Email records, financial transaction data, device contents, and metadata examined at the technical level.
• Forensic accounting partnerships. Independent analysis of financial records, loss calculation challenges, and alternative explanations for financial patterns.
• ACS-CHAL Forensic Lawyer-Scientist — both Deandra Grant and Douglas Huff. Scientific methodology applied to the forensic evidence underlying financial crime cases.
• Texas Super Lawyer since 2011. AV® Preeminent rated by Martindale-Hubbell®.
• Offices in Dallas, Fort Worth, Allen, Denton, Waco, and Rockwall. North and Central Texas courts served directly.

If you are facing white-collar crime charges in Texas, call (214) 225-7117 for a free, confidential consultation. Or schedule online at texasdwisite.com.