How Charges of Corporate Fraud Can Alter Your Future

 Posted on February 14, 2025 in Criminal Defense

In December 2024, a 55-year-old Texas title company employee admitted to orchestrating a $350,000 real estate wire fraud scheme. The woman admitted to participating in a scheme that used deceptive email, fraudulent warranty deeds, and falsified lien payoff statements to mislead property buyers, title companies, and lenders over a four-year period.

Using her position of trust, the woman facilitated closings backed by falsified documents. The crime was charged and prosecuted federally. Sentencing will take place in March. The potential sentence is up to 20 years in federal prison and a maximum fine of $250,000. Real estate wire fraud is one example of corporate fraud.

The Enron scandal from 2001 is an example of corporate fraud. Corporate fraud can be difficult to detect, and too often, the wrong person is accused of the crime because of the ease with which one employee can use another’s computer. If you have been charged with corporate fraud, you should take the charges very seriously by speaking to a knowledgeable Pleasanton, TX white-collar criminal attorney.

What is Corporate Fraud?

Corporate fraud refers to illegal activities by a company or an individual that are done dishonestly or unethically. This type of business fraud is marked by its complexity and the economic impact on the business, its employees, and outside parties.

There are many different forms of corporate fraud, including:

•  Asset misappropriation
•  Payroll fraud
• Financial statement fraud
• Tax fraud
• Asset theft
• Wire fraud
•  Identity theft
• Forgery
• Insider trading
• Insurance fraud
•  Money laundering
• Securities fraud
• Investment fraud

While corporate fraud can be conducted in many different ways, it usually occurs when someone takes advantage of confidential information or leverages sensitive assets for financial gain or when the company itself uses fraudulent practices hidden behind legitimate business practices to make the company more attractive to potential buyers or influence company stocks.

What Are the Penalties for Corporate Fraud?

The penalties for corporate fraud can vary significantly, depending on the specific criminal offense and the amount of money involved. Under $100 is a Class C misdemeanor with up to a $500 fine, $100-$750 is a Class B misdemeanor with up to 180 days in jail, $750 to $2,500 is a Class A misdemeanor with up to one year in jail, and $2,500 - $30,000 is a state jail felony that can result in up to two years in state jail.

Between $30,000 and $150,000 is a third-degree felony that can result in between two and 10 years in prison, $150,000 to $300,000 is a second-degree felony that can result in two to 20 years in prison, and over $300,000 is a first-degree felony that can result in between five years and life in prison.   

What Are Some Common Defenses to Corporate Fraud?

Every charge of corporate fraud is unique in some way, as is every defendant. Proving corporate fraud usually requires the prosecutor to show the defendant had specific intent. Proving a defendant’s knowledge and state of mind can be difficult for the prosecutor to accomplish since business financial transactions are often extremely complex. Other potential defenses may include errors made by police, failure by law enforcement to properly Mirandize the defendant, or failure to allow him or her to contact a lawyer.

Corporate fraud can potentially occur in every industry and every type of business relationship. The overarching theme is that an individual or business entity intentionally deceives another party to gain a financial advantage. Virtually anyone involved in business transactions can both be at risk for corporate fraud or be the perpetrator of corporate fraud.

Contact an Atascosa County, TX Corporate Fraud Attorney

If you are charged with corporate fraud, you may be charged by the state of Texas, or in cases that cross state lines, you could be charged by the federal government. You should speak to a Pleasanton, TX corporate fraud lawyer from BRCK Criminal Defense Attorneys to ensure your rights and your future are protected from beginning to end. Every partner in the firm is either a former judge or criminal prosecutor, which benefits each client. Call 830-769-1010 to schedule your free consultation.