Federal Financial Crime Prosecutions — What You Need to Know
Federal financial crime cases are driven by numbers. The loss amount under the U.S. Sentencing Guidelines often dictates the sentence more than any other factor. The government's loss calculation is frequently inflated — and challenging that calculation is one of the highest-impact strategies in any financial crime defense.
John Kirby has handled complex financial investigations from both sides of the courtroom. He understands forensic accounting, the Federal Sentencing Guidelines' economic crime tables, and how to build a defense that challenges both the evidence and the government's math.
Financial Crimes We Defend
- Money laundering (18 U.S.C. §§ 1956-1957) — Promotional money laundering, concealment money laundering, structuring, and international money laundering. These cases often involve complex financial transactions spanning multiple jurisdictions.
- Tax evasion and false returns (26 U.S.C. §§ 7201, 7206) — Criminal tax cases require the government to prove willfulness — a higher standard than civil tax cases. The line between aggressive tax planning and criminal evasion is where these cases are fought.
- Bank fraud and financial institution fraud (18 U.S.C. § 1344) — False statements to banks, loan fraud, mortgage fraud. These cases often involve voluminous documentary evidence; effective defense requires mastery of the paper trail.
- Wire fraud (18 U.S.C. § 1343) — The most versatile tool in the federal prosecutor's arsenal. Any use of interstate wires (email, phone, wire transfer) in furtherance of a scheme to defraud can support a wire fraud charge.
- Structuring and currency transaction reporting (31 U.S.C. §§ 5313, 5324) — Breaking cash transactions below $10,000 to avoid bank reporting requirements. These cases often arise from legitimate business practices misunderstood by prosecutors.
The Loss Amount Battle
In federal financial crime cases, the loss amount is the single most important factor at sentencing. The difference between a $100,000 loss and a $1,500,000 loss can mean years of additional custody. The government's loss calculation should be scrutinized on multiple fronts:
- Actual loss vs. intended loss — The Guidelines allow sentencing based on intended loss, not just actual loss. The government's intended-loss theory can be challenged.
- Credits against loss — Money returned, services rendered, and collateral pledged may reduce the loss amount.
- Causation — Not every dollar the government claims as loss was caused by the alleged offense.
- Relevant conduct — The government may attempt to include uncharged or even acquitted conduct in its loss calculation.
Asset Forfeiture Defense
Federal financial crime prosecutions almost always include asset forfeiture. The government can seize bank accounts, real property, vehicles, and other assets allegedly connected to criminal conduct. Forfeiture is a civil proceeding separate from the criminal case, with its own rules, deadlines, and burdens of proof. Defending against forfeiture requires separate legal analysis and strategic decisions about whether and when to file a claim.