AN ALL-TIME LOW IN WHITE-COLLAR CRIME PROSECUTIONS UNDER PRESIDENT TRUMP

During Trump’s presidency, we have witnessed all-time lows in the prosecution of white-collar crimes. Intending to be viewed as a business-friendly president, the prosecution of white-collar crimes such as securities fraud and anti-trust violations decreased dramatically under President Trump. When compared to the enforcement of white-collar crimes under President Obama, prosecutions for white-collar crimes during Trump’s presidency dropped by about 30% on average. In 2011, the Obama administration oversaw the prosecution of over 10,000 white-collar cases. In 2020, that number dropped to just over 5,000 cases under President Trump. In the first 20 months of the Trump administration, corporate fines dropped an astonishing 76% when compared to the Obama administration. Corporate penalties also saw a significant decline, dropping from $14.15 billion in penalties during the last 20 months of Obama’s presidency to just $3.4 billion in corporate penalties handed out during Trump’s first 20 months. During Trump’s presidency, he pushed the Department of Justice to target immigrants, political opponents, and activists more so than he did with respect to those suspected of committing white-collar crime. This approach is expected to change under President Biden as he implements his policies going forward. The only real question that remains is how far President Biden will go in his fight against white-collar crime.

WHITE-COLLAR CRIME INDICTMENTS EXPECTED TO RISE UNDER PRESIDENT BIDEN

As President Trump’s policies have turned a blind eye to many types of white-collar crime, President Biden’s administration is expected to make up for it with enforcement and regulation. An expected focus of federal prosecutors will be on crimes such as tax evasion, bribery, and Paycheck Protection Program (PPP) fraud. The PPP gave out more than $525 billion to people across the country through the use of thousands of banks. Cases alleging health care fraud, stock scams, and insider trading expect to also rise under President Biden. The money and resources that were allocated to be used to target immigrants, for instance, will be reallocated towards the investigation and prosecution of white-collar crimes. While some specific white-collar crimes are expected to be more heavily scrutinized than others; it is expected that investigation and enforcement of white-collar crimes will increase significantly across the board, regardless of type. Businesses should be on high alert to make sure that any ethics and compliance programs are being properly and effectively implemented across their companies. Any failures in the implementation of ethics and compliance programs within a business can have disastrous consequences to anyone involved. If your business is operating under an outdated ethics or compliance program or operating under a current one that is not being followed, then you are at risk for prosecution if any issues are uncovered. 

HOW DOES THIS AFFECT ME?

With an expected rise in enforcement and prosecution of any type of crime, the appropriate level of extra care must be exercised to ensure that you are not falsely accused. Since white-collar crime indictments are expected to increase in the coming months, businesses should be more careful about their business practices to make sure that they are not doing anything that appears illegal or raises the attention of any federal authorities. It may be beneficial to conduct a company-wide audit to see what issues are brought forward, and how they can be corrected. If you have questions about your current business practices or are being investigated for a white-collar crime, then it is important that you speak to an experienced white-collar crime attorney as soon as possible; call us at Bajoka Law so we can help.