White Collar Crime Convictions for May 2013
The latest available data from the Justice Department show that during May 2013 the government reported 640 new white collar crime convictions. According to the case-by-case information analyzed by the Transactional Records Access Clearinghouse (TRAC), this number is down 5.7% 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 convicted for 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 2013 convictions of this type are compared with those of the same period in the previous year, the number of convictions was down (-8.4 percent). Convictions over the past year are still much higher than they were five years ago. Overall, the data show that convictions of this type are up 6.9 percent from levels reported in 2008.
The leveling out in these cases is partly related to increases in the matters filed in U.S. Magistrate Courts. If magistrate cases are excluded and only Federal District Court cases are counted, the overall increase in white collar crime convictions is 4.2 percent instead of 6.9 percent. The evidence suggests that part of the difference may be the result of improvements in the recording of the magistrate cases by the Justice Department.
The leveling out from the levels five years ago in white collar crime convictions for these matters is shown more clearly in Figure 1. The vertical bars in Figure 1 represent the number of white collar crime convictions of this type recorded on a month-to-month basis. Where a prosecution was initially filed in U.S. Magistrate Court and then transferred to the U.S. District Court, the magistrate filing date was used since this provides an earlier indicator of actual trends. 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. To view trends year-by-year rather than month-by-month, see TRAC's annual report series for a broader picture.
Within the broad category of white collar crime, cases were classified by prosecutors into more specific types.
Case types within white collar crime are
• Federal Procurement Fraud • Federal Program Fraud • Tax Fraud • Arson for Profit • Other Insurance Fraud • Financial Institution Fraud • Bankruptcy Fraud • Advance Fee Schemes • Other Fraud Against Businesses • Consumer Fraud • Securities Fraud • Commodities Fraud • Other Investment Fraud • Antitrust Violations - Other • Computer Fraud • Health Care Fraud • Fraud Against Insurance Providers • Intellectual Property Violations • Insider Fraud Against Insurance Providers • MEWA (Multiple Employer Welfare Arrangements) Fraud/MET • Antitrust Violations - Airlines • Antitrust Violations - Banking • Antitrust Violations - Defense Procurement • Antitrust Violations - Extraterritorial Application Of • Antitrust Violations - Finance Markets, Other than Banking • Telemarketing Fraud • Corporate Fraud • Identity Theft • Aggravated Identity Theft • Other White Collar Crime/Fraud The largest number of convictions of these matters in May 2013 was for "Fraud-Financial Institution", accounting for 15 percent of convictions. Convictions were also filed for "Fraud-Tax" (14.7%), "Fraud-Other" (11.6%), " Fraud-Identity Theft-Other" (10.2%), "Fraud-Federal Program" (10%), "Fraud-Mortgage" (10%), "Fraud-Health Care" (6.6%), "Fraud-Other Business" (3.9%), "Fraud-Computer" (3.3%), "Fraud-Identity Theft-Aggravated" (3.3%), "Fraud-Securities" (2.3%), " Fraud-Corporate" (2.2%). See Figure 2.
The lead investigative agency for white collar crime convictions in May 2013 was FBI accounting for 32 percent of convictions. Other agencies with substantial numbers of white collar crime convictions were: IRS (18% ), SecServ (14%), DHS (8%), Postal (8%). See Figure 3.
White Collar Crime Convictions in U.S. Magistrate Courts
Top Ranked Lead Charges
In May 2013, 34 defendants in white collar crime cases for these matters were filed in U.S. Magistrate Courts. These courts handle less serious misdemeanor cases, including what are called "petty offenses." In addition, complaints are sometimes filed in the magistrate courts before an indictment or information is entered. In these cases, the matter starts in the magistrate courts and later moves to the district court where subsequent proceedings take place.
In the magistrate courts in May the most frequently cited lead charge was Title 18 U.S.C Section 1028 involving the "Aggravated Identity Theft". This was the lead charge for 67.6 percent of all magistrate convictions in May.
Other frequently prosecuted lead charges include: "18 USC 1546 - Fraud and misuse of visas, permits, and other documents" (20.6%).
White Collar Crime Convictions in U.S. District Courts
In May 2013, 606 defendants in new cases for these matters were charged in the U.S. District Courts. In addition during May there were an additional 0 defendants whose cases moved from the magistrate courts to the U.S. district courts after an indictment or information was filed. The sections which follow cover both sets of cases and therefore cover all matters filed in district court during May.
Top Ranked Lead Charges
Table 2 shows the top lead charges recorded in the convictions of white collar crime matters filed in U.S. District Court during May 2013.
Lead Charge Count Rank 1yr ago 5yrs ago 18 USC 1344 - Bank Fraud 73 1 1 1 More 18 USC 1341 - Mail Fraud - Frauds and swindles 59 2 3 2 More 18 USC 371 - Conspiracy to commit offense or to defraud US 53 3 4 3 More 18 USC 1343 - Fraud by wire, radio, or television 53 3 2 4 More 18 USC 641 - Public money, property or records 38 5 8 7 More 18 USC 1349 - Mail Fraud - Attempt and Conspiracy 33 6 5 16 More 18 USC 1347 - Health Care Fraud 30 7 9 8 More 26 USC 7206 - Fraud and False statements 28 8 10 9 More 18 USC 1029 - Fraud and related activity - access devices 23 9 7 6 More 26 USC 7201 - Attempt to evade or defeat tax 23 9 11 11 More Table 2: Top charges for convictions
"Bank Fraud" (Title 18 U.S.C Section 1344) was the most frequent recorded lead charge. "Bank Fraud" (Title 18 U.S.C Section 1344) was ranked 1 a year ago, while it was ranked 1 five years ago.
Ranked 2nd in frequency was the lead charge "Mail Fraud - Frauds and swindles" under Title 18 U.S.C Section 1341. "Mail Fraud - Frauds and swindles" under Title 18 U.S.C Section 1341 was ranked 3 a year ago, while it was ranked 2 five years ago.
Ranked 3rd were "Conspiracy to commit offense or to defraud US" under Title 18 U.S.C Section 371 and "Fraud by wire, radio, or television" under Title 18 U.S.C Section 1343. "Conspiracy to commit offense or to defraud US" under Title 18 U.S.C Section 371 was ranked 4 a year ago, while it was ranked 3 five years ago."Fraud by wire, radio, or television" under Title 18 U.S.C Section 1343 was ranked 2 a year ago, while it was ran ked 4 five years ago.
Among these top ten lead charges, the one showing the greatest increase in convictions—up 62.9 percent—compared to one year ago was Title 18 U.S.C Section 1347 that involves " Health Care Fraud ". Compared to five years ago, the largest increase—184.6 percent—was registered for convictions under " Mail Fraud - Attempt and Conspiracy " (Title 18 U.S.C Section 1349 ).
Again among the top ten lead charges, the one showing the sharpest decline in convictions compared to one year ago—down 23.6 percent—was Mail Fraud - Attempt and Conspiracy (Title 18 U.S.C Section 1349 ). Compared to five years ago, the most significant decline in convictions— 22.2 percent—was for convictions where the lead charge was " Bank Fraud " (Title 18 U.S.C Section 1344 ).
Top Ranked Judicial Districts
In May 2013 the Justice Department said the government obtained 236.9 white collar crime convictions for every ten million people in the United States.
Understandably, there is great variation in the per capita number of white collar crime convictions in each of the nation's ninety-four federal judicial districts.
The districts registering the largest number of convictions per capita for these matters last month are shown in Table 3. Districts must have at least 5 white collar crime convictions to receive a ranking.
Judicial District Percapita Count Rank 1yr ago 5yrs ago Ala, S 1,890 13 1 26 38 More La, M 915 6 2 78 42 More Fla, S 882 49 3 1 1 More Fla, N 628 9 4 57 62 More Penn, E 546 26 5 12 11 More Ala, M 542 5 6 66 87 More N. Y., S 491 21 7 12 3 More Miss, S 456 7 8 32 11 More La, E 450 6 9 51 42 More Texas, E 442 13 10 18 27 More Table 3: Top 10 districts (per ten million people)
The Southern District of Alabama (Mobile)—with 1890 convictions as compared with 236.9 convictions per ten million population in the United States—was the most active during May 2013.
The Middle District of Louisiana (Baton Rouge) ranked 2nd.
Southern District of Florida (Miami) is now ranking 3rd. The Southern District of Florida (Miami) was ranked 1 a year ago, while it was ranked 1 for most frequent use five years ago.
Recent entrants to the top 10 list were Eastern District of Pennsylvania (Philadelphia), now ranked 5th , and Southern District of New York (Manhattan) at 7th In the same order, these districts ranked 12th and 12th one year ago and 11th and 3rd five years ago.
The federal judicial district which showed the greatest growth in the rate of white collar crime convictions compared to one year ago— 218.8 percent—was Middle District of Alabama (Montgomery). This was the same district that had the largest increase— 1175 percent—when compared with five years ago.
In the last year, the judicial District Court recording the largest drop in the rate of white collar crime convictions— 39.1 percent—was Southern District of Mississippi (Jackson). This was the same district that had the largest increase— 63.2 percent—when compared with five years ago.
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 resulting in convictions of this type during May 2013 are shown in Table 4.
Judge Count Rank Adams, John R. Ohio, N 11 1 More Moore, Kevin Michael Fla, S 9 2 More Martinez, Jose E. Fla, S 9 2 More Kennelly, Matthew F. Ill, N 8 4 More Schell, Richard A. Texas, E 8 4 More Granade, Callie V. Ala, S 6 6 More Steele, William H. Ala, S 6 6 More Gaughan, Patricia Anne Ohio, N 6 6 More Watson, Michael H. Ohio, S 6 6 More Sands, W[illie] Louis Ga, M 5 10 More Lee, Gerald Bruce Virg, E 5 10 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 convictions per capita, while the remaining 6 judges were from other districts. (Because of ties, there were a total of 11 judges in the "top ten" rankings.)
Judge John R. Adams in the Northern District of Ohio (Cleveland) ranked 1st with 11 convicted in white collar crime convictions.
Judges Kevin Michael Moore in the Southern District of Florida (Miami) and Jose E. Martinez in the Southern District of Florida (Miami) ranked 2nd with 9 convicted in white collar crime convictions.
Report Generated: July 22, 2013
