White Collar Crime Prosecutions for March 2007
The latest available data from the Justice Department show that during March 2007 the government reported 633 new white collar crime prosecutions. According to the case-by-case information analyzed by the Transactional Records Access Clearinghouse (TRAC), this number is up 29.4% over the previous month.
White Collar Crime
This report summarizes the government's recent efforts when it comes to combating white collar crime—the number of such cases, the investigative agencies involved, the laws cited, the busiest federal districts and the busiest federal judges.
See more...The comparisons of the number of defendants charged with white collar crime-related offenses are based on case-by-case information obtained by TRAC under the Freedom of Information Act from the Executive Office for United States Attorneys. (See Table 1)
When monthly 2007 prosecutions of this type are compared with those of the same period in the previous year, the number of filings was down (-7.5 percent). Prosecutions over the past year are still much lower than they were five years ago. Overall, the data show that prosecutions of this type are down 18.7 percent from levels reported in 2002.
The decrease from the levels five years ago in white collar crime prosecutions for these matters is shown more clearly in Figure 1. The vertical bars in Figure 1 represent the number of white collar crime prosecutions of this type recorded on a month-to-month basis. The superimposed line on the bars plots the six-month moving average so that natural fluctuations are smoothed out. The one and five-year rates of change in Table 1 and in the sections that follow are all based upon this six-month moving average.
Within the broad category of white collar crime, cases were classified by prosecutors into more specific types.
Case types within white collar crime are
• Fraud-Federal Procurement
• Fraud-Federal Program
• Fraud-Tax
• Fraud-Arson for Profit
• Fraud-Other Insurance
• Fraud-Financial Institution
• Fraud-Bankruptcy
• Fraud-Advance Fee Schemes
• Fraud-Other Business
• Fraud-Consumer
• Fraud-Securities
• Fraud-Commodities
• Fraud-Other Investment
• Antitrust-Other
• Fraud-Computer
• Fraud-Health Care
• Fraud-Against Ins. Provider
• Fraud-Insider Ins. Provider
• Fraud-MEWA/MET
• Antitrust-Airlines
• Antitrust-Banking
• Antitrust-Defense Procurement
• Antitrust-Extraterritorial
• Antitrust-Other Finance Mkts.
• Fraud-Telemarketing
• Fraud-Corporate
• Fraud-Other
The largest number of prosecutions of these matters in March 2007 was for "Fraud-Financial Institution", accounting for 21.2 percent of prosecutions. Prosecutions were also filed for "Fraud-Federal Program" (17.5%), "Fraud-Tax" (16.6%) , "Fraud-Other" (11.5%), "Fraud-Other Business" (8.2%), "Fraud-Securities" (6%), "Fraud-Health Care" (5.7%), "Fraud-Consumer" (2.2%), "Fraud-Computer" (2.1%). See Figure 2.
The lead investigative agency for white collar crime prosecutions in March 2007 was FBI accounting for 30 percent of prosecutions referred. Other agencies with substantial numbers of white collar crime referrals were: IRS (19% ), SecServ (15%), Postal (9%), HHS (5%). See Figure 3.
White Collar Crime Prosecutions in U.S. Magistrate Courts
Top Ranked Lead Charges
In March 2007, 13 percent of white collar crime cases for these matters took place in U.S. Magistrate Courts which handle less serious misdemeanor cases, including what are called "petty offenses." In the magistrate courts in March the most frequently cited lead charge was Title 18 U.S.C Section 1344 involving the "Bank fraud". This was the lead charge for 22 percent of all magistrate filings in March.
Other frequently prosecuted lead charges include: "18 USC 1029 - Fraud and related activity - access devices" (11%), "18 USC 1349 - Mail Fraud - Attempt and Conspiracy" (9.8%), "18 USC 1341 - Mail Fraud - Frauds and swindles" (6.1%), " 18 USC 1347 - Health Care Fraud" (6.1%).
White Collar Crime Prosecutions in U.S. District Courts
Top Ranked Lead Charges
Table 2 shows the top lead charges recorded in the prosecutions of white collar crime matters filed in U.S. District Court during March 2007.
Lead Charge Count Rank 1yr ago 5yrs ago 18 USC 1344 - Bank fraud 65 1 1 1 More 18 USC 1341 - Mail Fraud - Frauds and swindles 60 2 2 2 More 18 USC 371 - Conspiracy to commit offense or to defraud US 44 3 4 3 More 18 USC 1343 - Fraud by wire, radio, or television 35 4 3 5 More 26 USC 7206 - Fraud and False statements 29 5 13 12 More 18 USC 287 - False, fictitious or fraudulent claims 24 6 7 13 More 18 USC 641 - Public money, property or records 22 7 9 7 More 18 USC 1001 - Fraud/false statements or entries generally 21 8 10 9 More 15 :0078j 17 9 - - More 18 USC 513 - Securities of the States and private entities 17 9 15 15 More
Table 2: Top charges filed
"Bank fraud" (18 U.S.C Section 1344) was the most frequent recorded lead charge. This statute was also ranked 1st a year ago as well as five years ago.
Ranked 2nd in frequency was the lead charge "Mail Fraud - Frauds and swindles" under Title 18 U.S.C Section 1341. This statute was also ranked 2nd a year ago as well as five years ago.
Ranked 3rd was "Conspiracy to commit offense or to defraud US" under Title 18 U.S.C Section 371. This statute was ranked 4th a year ago, while it was the 3rd most frequently invoked 5 years ago.
Among these top ten lead charges, the one showing the greatest increase in prosecutions—up 31.4 percent—compared to one year ago was Title 18 U.S.C Section 513 that involves " Securities of the States and private entities ". Compared to five years ago, the largest increase—52.7 percent—was registered for prosecutions under " False, fictitious or fraudulent claims " (Title 18 U.S.C Section 287 ).
Again among the top ten lead charges, the one showing the sharpest decline in prosecutions compared to one year ago—down 21.5 percent—was False, fictitious or fraudulent claims (Title 18 U.S.C Section 287 ). Compared to five years ago, the most significant decline in prosecutions— 44.9 percent—was for filings where the lead charge was " Mail Fraud - Frauds and swindles " (Title 18 U.S.C Section 1341 ).
Top Ranked Judicial Districts
In March 2007 the Justice Department said the government brought 225.2 white collar crime prosecutions for every ten million people in the United States.
Understandably, there is great variation in the per capita number of white collar crime prosecutions that are filed in each of the nation's ninety-four federal judicial districts.
The districts registering the largest number of prosecutions per capita for these matters last month are shown in Table 3. Districts must have at least 5 white collar crime prosecutions to receive a ranking.
Judicial District Percapita Count Rank 1yr ago 5yrs ago La, M 1,317 8 1 21 70 More Ill, S 943 10 2 59 83 More Virg, W 936 16 3 86 62 More W Virg, N 684 5 4 65 - More Nevada 668 13 5 28 29 More Miss, S 661 10 6 19 53 More S Car 600 21 7 4 8 More R. I. 555 5 8 78 80 More Tenn, W 549 7 9 19 11 More Ohio, N 548 27 10 5 7 More
Table 3: Top 10 districts (per ten million people)
Middle District of Louisiana (Baton Rouge)—with 1317 prosecutions as compared with 225.2 prosecutions per ten million population in the United States—was the most active during March 2007. The district's position last year was 21st. Five years ago, the district's position was 70.
Southern District of Illinois (East St. Louis) ranked 2nd. This marked a rise from Illinois South's 59thplace ranking just one year ago. Five years ago, the district's position was 83.
Western District of Virginia (Roanoke) is now ranking 3rd. It moved up in its rankings from a year ago when it ranked 86th. Five years ago, the district's position was 62.
Recent entrants to the top 10 list were Southern District of Mississippi (Jackson), now ranked 6th , and Western District of Tennessee (Memphis) at 9th In the same order, these districts ranked 19th and 19th one year ago and 53rd and 11th five years ago.
The federal judicial district which showed the greatest growth in the rate of white collar crime prosecutions compared to one year ago— 483.3 percent—was Western District of Virginia (Roanoke). Compared to five years ago, the district with the largest growth— 276.9 percent—was Southern District of Mississippi (Jackson).
In the last year, the judicial District Court recording the largest drop in the rate of white collar crime prosecutions— 37.5 percent—was Northern District of West Virginia (Wheeling). But over the past five years, Western District of Tennessee (Memphis) showed the largest drop— 47 percent.
Top Ranked District Judges
At any one time, there are about 680 federal District Court judges working in the United States. The judges recorded with the largest number of new white collar crime crime cases of this type during March 2007 are shown in Table 4.
Judge Count Rank Montgomery, Ann D. Minnesota 14 1 More Reagan, Michael Joseph Ill, S 9 2 More Takasugi, Robert Mitsuhiro Cal, C 6 3 More Fogel, Jeremy D. Cal, N 5 4 More Campbell, David G. Arizona 4 5 More Parker, John Victor La, M 4 5 More Boyle, Terrence William N Car, E 4 5 More Hicks, Larry R. Nevada 4 5 More Karlton, Lawrence K. Cal, E 3 9 More Chatigny, Robert N. Conn 3 9 More Kessler, Gladys D. C. 3 9 More Moreno, Federico A. Fla, S 3 9 More Seitz, Patricia A. Fla, S 3 9 More Lawson, Hugh Ga, M 3 9 More Lodge, Edward J. Idaho 3 9 More Gettleman, Robert William Ill, N 3 9 More Fallon, Eldon E. La, E 3 9 More Hicks, S. Maurice Jr. La, W 3 9 More Bell, Robert Holmes Mich, W 3 9 More Ericksen, Joan N. Minnesota 3 9 More Stohr, Donald J. Mo, E 3 9 More Hayden, Katharine Sweeney N. J. 3 9 More Jones, Robert Clive Nevada 3 9 More Mahan, James C. Nevada 3 9 More
Table 4: Top 10 judges
A total of 5 out of the "top ten" judges were in districts which were in the top ten with the largest number of white collar crime filings per capita, while the remaining 19 judges were from other districts. (Because of ties, there were a total of 24 judges in the "top ten" rankings.)
Judge Ann D. Montgomery in the District of Minnesota ranked 1st with 14 defendants in white collar crime cases.
Judge Michael Joseph Reagan in the Southern District of Illinois (East St. Louis) ranked 2nd with 9 defendants in white collar crime cases.
Judge Robert Mitsuhiro Takasugi in the Central District of California (Los Angeles) ranked 3rd with 6 new white collar crime cases.
