State vs. Federal White Collar Criminal Defense

White collar crimes often unfold behind office doors rather than in dramatic encounters and arrests, but the consequences of white-collar crimes are often even more severe than those for standard criminal offenses. These non-violent offenses, typically committed for financial gain, frequently involve deceit, fraud, or a breach of trust. Whether prosecuted at the state or federal level, white collar crimes demand a highly strategic legal defense — one that recognizes the nuances between jurisdictions and the particular tactics used by each.

At Sellers Law Firm, we help clients work through these charges with clarity and commitment. Whether you’re facing state or federal allegations, call Sellers Law Firm at (817) 928-4222 for both state and federal white collar criminal defense.

What is considered a white collar crime?

The term “white collar crime” refers to a broad category of non-violent, financially motivated offenses, usually committed by individuals or entities in business or government. These crimes are characterized by deception, manipulation, or abuse of trust for personal or corporate gain. Common white collar crimes include:

Fraud (e.g., wire fraud, insurance fraud, securities fraud)
Embezzlement
Insider trading
Money laundering
Tax evasion
Identity theft
Forgery
Bribery and public corruption

White collar crimes are typically complex, involving substantial paper trails, electronic records, and lengthy investigations. In many cases, these crimes are prosecuted after months — or even years — of investigation by agencies like the FBI, SEC, or state-level financial enforcement divisions.

Notably, intent plays a crucial role in white collar prosecutions. Prosecutors must often prove that the accused had a deliberate intent to deceive or defraud. Unlike many violent or property crimes, white collar offenses are less about physical acts and more about mental state, planning, and decision-making over time.

Is white collar crime federal or state?

In short, it can be either or both. Understanding whether a white collar crime falls under state and/or federal jurisdiction hinges on several key factors, including the scope of the crime, the parties involved, and the nature of the violated laws.

	State-level crimes	Federal crimes
Jurisdiction and scope	State-level crimes generally involve conduct that occurs within a single state and violates that state’s criminal statutes.	Federal-level crimes typically involve interstate commerce, federal agencies, federal property, or violations of federal statutes (like the Securities Exchange Act or the Internal Revenue Code).
Investigative bodies	State cases are usually investigated and prosecuted by local district attorneys and state law enforcement agencies.	Federal cases are typically handled by federal agencies such as the FBI, IRS, SEC, and the Department of Justice.

For example, embezzling from a local employer may result in state charges, while manipulating stock prices or committing wire fraud across state lines likely triggers federal charges. Because federal agencies typically have more resources and broader investigative powers, federal white collar cases can be far more complex and aggressive in scope.

Penalties

State penalties can vary significantly based on local statutes and judicial discretion.
Federal crimes often carry harsher penalties, including longer prison sentences and larger fines, especially under sentencing guidelines like those of the U.S. Sentencing Commission.

Federal crime sentencing is incredibly complicated, and the variables that can impact the penalties are almost innumerable. Below is a chart that shows how some of these factors interact.

Base offense level	Crime type	Loss amount	Enhancements/aggravating factors	Estimated sentencing range
6 – 7	Minor fraud or tax offenses	<$6,500	Few/no victims, no prior record	0 – 6 months
10 – 12	Basic embezzlement, false claims	$6,500 – $40,000	Single victim, minimal planning	6 – 18 months
14 – 18	Moderate fraud/tax evasion	$40,000 – $150,000	Some planning, multiple victims	15 – 41 months
20 – 24	Significant fraud/conspiracy	$150,000 – $550,000	Sophisticated means, 10+ victims	33 – 71 months
25 – 28	Major fraud, laundering	$550,000 – $2.5 million	Leader/organizer, abuse of trust, obstruction	57 – 108 months
29 – 32	Large-scale corporate crime	$2.5 million – $7 million	Substantial harm, vulnerable victims	87 – 135 months
33+	Massive Ponzi schemes, corruption	$7 million+	Widespread harm, international scope, high-level execs	121 months to life

Note that the above table is only meant to provide an example of how the Federal Sentencing Guidelines function. Your sentence will be calculated based on a number of contributing factors, the most significant of which include:

Loss amount
Number of victims
Sophisticated means
Role in offense (leaders and organizers will have their offense level increased)
Acceptance of responsibility (can reduce offense levels)
Criminal history

Overlap

It’s also possible to be charged at both levels for the same conduct, due to the concept of “dual sovereignty”, meaning state and federal governments are separate sovereigns and can prosecute crimes independently.

What to know about state-level white collar criminal defense

Though state white collar crime charges may not always carry the same maximum penalties as federal ones, they still pose significant legal, financial, and reputational risks. An effective defense strategy at the state level hinges on a nuanced understanding of local laws, prosecutorial priorities, and procedural rules.

Common defenses in state-level cases

Lack of intent. Prosecutors must prove that the defendant knowingly committed a deceptive act. Demonstrating that the accused acted in good faith, misunderstood instructions, or lacked criminal intent can be a powerful defense.
Insufficient evidence. Many white collar cases are built on extensive documentation. Challenging the admissibility or reliability of emails, accounting records, or witness testimony can significantly weaken the prosecution’s case.
Entrapment. If a defendant can show that law enforcement induced the crime and that they would not have committed it otherwise, entrapment may be a valid defense — though difficult to prove.
Mistake of fact. If the alleged misconduct resulted from an honest mistake (e.g., misinterpreting financial data or compliance requirements) it may negate the element of intent.
Statute of limitations. In some cases, the defense can challenge whether charges were brought within the legally permitted timeframe under state law.

Strategic considerations

Defending state-level charges often requires negotiation with district attorneys who may be more amenable to plea deals, diversion programs, or restitution-based resolutions than federal prosecutors. Leveraging local relationships and understanding the temperament of local judges can shape the trajectory of a case.

What to know about federal white collar criminal defense

Federal white collar charges are often the result of long-term investigations, during which prosecutors have already built detailed cases. These charges require highly strategic and proactive defense planning from the earliest stages of investigation or indictment.

Key differences in federal cases

Discovery: Federal prosecutors often have access to more robust investigative tools, such as subpoenas, surveillance, and grand jury testimony.
Sentencing guidelines: The federal system uses structured sentencing guidelines that often result in lengthy prison terms, particularly in high-dollar financial crimes.

Common federal defenses

Challenging jurisdiction. A federal case may hinge on specific thresholds like the use of interstate communications or federal funds. A white collar criminal lawyer might argue that the conduct does not meet the criteria for federal jurisdiction.
Fourth and Fifth Amendment violations. If federal investigators conducted illegal searches, failed to read Miranda rights, or improperly obtained statements, the defense can move to suppress this evidence.
Lack of mens rea (criminal intent). Many federal statutes require proof that the defendant knowingly and willfully committed fraud or another offense. Demonstrating a lack of intent or relying on expert witnesses to explain financial complexity can support this defense.
Duress or coercion. If a defendant was forced to engage in illegal conduct under threat, this may be used to argue that the action was not voluntary.
Corporate responsibility shield. In cases involving large organizations, the defense may argue that the alleged conduct was perpetrated by rogue employees without the knowledge or approval of senior leadership.

Learn more about defending against fraud allegations

Federal trial strategy

Given the high conviction rate in federal court, early engagement with prosecutors and strong pretrial advocacy is crucial. Defense attorneys may challenge the indictment itself, question the sufficiency of grand jury evidence, or seek to resolve the case through plea negotiations that minimize sentencing exposure.

In rare cases, a trial may be the best path forward, particularly when the government’s case is circumstantial or relies heavily on inference rather than direct evidence.

The right defense strategy matters. Call Sellers Law Firm today.

Whether you’re being investigated for a state-level white collar offense or have been indicted in federal court, the stakes are high. These charges can impact your freedom, finances, professional standing, and personal reputation for years to come. But just as the prosecution builds its case over time, your defense should be equally thorough, deliberate, and tailored to the jurisdiction you’re in.

State white collar cases often allow more room for negotiation and alternative sentencing, while federal cases require laser-sharp defense strategies and deep knowledge of procedural law and sentencing dynamics. In both scenarios, working with a seasoned defense attorney who understands the legal, financial, and human dimensions of white collar crime is essential.

At Sellers Law Firm, we don’t take a one-size-fits-all approach to state or federal white collar criminal defense. We assess the unique facts of your case, the laws that apply, and the most effective strategies available at both the state and federal levels. Our mission is to protect your rights, your reputation, and your future.

If you’re facing white collar criminal charges, don’t wait. Contact Sellers Law Firm today for a confidential consultation.

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