Michigan White Collar Crime and Fraud Defense Lawyers

At Neumann Law Group, our Michigan criminal defense lawyers represent professionals, business owners, and employees facing fraud and financial allegations across Detroit, Grand Rapids, Traverse City, and the surrounding communities. These cases often begin long before an arrest, with an audit, a forensic accountant, or a quiet request for documents. Our wider Michigan criminal defense practice handles the full range of charges, and white collar matters call for an approach built around records, intent, and timing.

What Counts as a White Collar Crime in Michigan?

There is no single statute titled white collar crime. The phrase covers a family of offenses that share a financial motive and a reliance on deception. Common Michigan charges include embezzlement, false pretenses, larceny by conversion under MCL 750.362, forgery, credit card and financial transaction device fraud, insurance fraud, and identity theft. Related conduct can support charges of money laundering or, where a pattern exists, racketeering.

White collar charges in Michigan turn on intent. Most of these statutes require proof that the accused acted knowingly and with intent to defraud or cheat, not merely that money went missing or a deal went bad. Under MCL 750.218, for example, the prosecution must show a false representation about a past or existing fact, or a present intention not to perform, made to obtain money or property. That intent requirement is frequently where these cases are won or lost.

How Michigan Grades Fraud and Theft by Dollar Amount

Michigan ties the severity of most financial crimes to the value involved, and it allows separate amounts taken in a single scheme within a 12-month period to be aggregated into one larger figure. That aggregation rule can turn a series of small transactions into a high-level felony, which is why the charged amount is often contested.

Embezzlement under MCL 750.174 runs in tiers. Less than $200 is a misdemeanor, $200 to less than $1,000 is a higher misdemeanor, and at $1,000 the offense becomes a felony. The felony tiers reach 5 years for $1,000 to less than $20,000, 10 years for $20,000 to less than $50,000, 15 years for $50,000 to less than $100,000, and 20 years for $100,000 or more. False pretenses under MCL 750.218 follows a parallel value structure, with the most serious tier likewise carrying up to 20 years.

Nationally, the scale of fraud is significant and rising. The Federal Trade Commission reported that consumers lost more than $12.5 billion to fraud in 2024, a 25 percent increase over the prior year, according to its Consumer Sentinel Network data. That climate shapes how aggressively investigators and prosecutors pursue financial cases.

What Other Financial Crimes Does Michigan Charge?

Embezzlement and false pretenses are the headline offenses, but Michigan prosecutes a wider set of financial crimes that often appear alongside them in a charging document. Forgery under MCL 750.248 and uttering and publishing a forged instrument under MCL 750.249 are each 14-year felonies, and notably neither one turns on the dollar amount involved. A single forged check or altered document can support a serious felony regardless of its face value, which sets these charges apart from the value-tiered offenses.

Other statutes target the tools of modern fraud. Financial transaction device fraud under MCL 750.157n covers the misuse of credit and debit cards and account information. Identity theft is charged under the Identity Theft Protection Act at MCL 445.65, which reaches the use of another person’s identifying information to obtain credit, goods, or services. Because conduct in a single case frequently touches several of these statutes at once, an indictment or information can carry multiple felony counts arising from what a client experienced as one course of events.

When Does a Fraud Case Become a Federal Matter?

The line between a state and a federal fraud case is often a matter of method and reach. When a scheme uses the U.S. mail or a private carrier, it can support mail fraud under 18 U.S.C. 1341. When it uses email, phone, or other interstate wires, it can support wire fraud under 18 U.S.C. 1343. Fraud aimed at a bank supports bank fraud under 18 U.S.C. 1344, fraud against health programs supports health care fraud under 18 U.S.C. 1347, and underreporting income can support tax evasion under 26 U.S.C. 7201.

Federal fraud penalties are severe. Mail fraud and wire fraud each carry up to 20 years in prison per count, rising to 30 years and a $1 million fine when the offense affects a financial institution or relates to a federally declared disaster. Because each mailing or transmission can be charged as a separate count, a single scheme can generate many counts. Federal sentences are then calculated under the loss-driven guideline at U.S.S.G. 2B1.1, where the size of the loss is one of the biggest drivers of the recommended range.

What Penalties Do White Collar Convictions Carry?

The headline penalty in any fraud case is prison, but it is rarely the only consequence. Michigan and federal courts routinely order restitution to victims and forfeiture of assets traced to the offense. For licensed professionals, including those in medicine, law, accounting, finance, and real estate, a fraud conviction can trigger separate licensing action. For noncitizens, a fraud conviction can carry immigration consequences, including removal.

The collateral effects often last longer than any sentence. A felony fraud conviction can close doors to employment, bonding, credit, and positions of financial trust for years. That is why the goal in many of these cases is not only to address the criminal exposure but to limit the secondary damage to a client’s career and finances.

How Neumann Law Group Approaches White Collar Defense

At Neumann Law Group, our work in financial cases is records-driven. These prosecutions are built on documents, accounting entries, emails, and bank statements, and the defense has to know that paper trail as well as the government does. We look for innocent explanations supported by the records, gaps in proof of intent, problems with how loss is calculated, and overreach in how separate transactions are aggregated.

Many of these cases turn on what happens during the investigation, before any charge is filed. We work to engage with prosecutors early, respond carefully to subpoenas, and, where appropriate, present evidence that can narrow or avoid charges. Our attorneys are admitted in Michigan, Massachusetts, California, and New York, the firm has been recognized in The National Trial Lawyers Top 100, and we handle both state and federal financial cases from offices in Detroit, Grand Rapids, and Traverse City. You can read more about our criminal defense attorneys. Consultations are free and available 24/7.

What Collateral Consequences Follow a Fraud Conviction?

The sentence imposed in court is often only part of what a fraud conviction costs. Many financial offenses carry mandatory restitution, which becomes an enforceable judgment that can follow a person for years through wage garnishment and liens. A felony record can also end or suspend a professional license. Accountants, financial advisors, nurses, real estate agents, attorneys, and others in regulated fields frequently face licensing board action that runs parallel to the criminal case and can outlast it. A federal fraud sentence typically adds a term of supervised release after any prison time, along with forfeiture of proceeds traceable to the offense, so the financial reach of a conviction extends well past the courtroom.

For a non-citizen, the stakes are higher still. Federal immigration law can treat a fraud offense as a crime involving moral turpitude, and a fraud or deceit offense involving a loss above the statutory threshold can be classified as an aggravated felony. Either category can trigger removal, regardless of how long a person has lived in the United States. Because a guilty plea that looks routine in criminal court can be decisive in immigration court, the two consequences have to be weighed together before any resolution.

Employment and reputation effects round out the picture. Background checks surface a fraud conviction readily, and roles that involve handling money, accessing financial systems, or holding a position of trust often become unavailable. We factor these downstream consequences into the defense from the start, because the right outcome is the one that protects a client’s livelihood, not only the one that resolves the charge on paper.

How White Collar Investigations and Prosecutions Unfold

Financial cases tend to surface slowly. An internal audit, a terminated employee, a regulator, or a forensic accountant flags a discrepancy, and an investigation follows. At the state level, that may mean the local prosecutor and police financial crimes unit. At the federal level, it may mean the FBI, IRS Criminal Investigation, or the United States Attorney working through a grand jury and subpoenas for records.

Because so much happens before charges appear, timing is central. Most Michigan fraud felonies must be charged within six years under MCL 767.24, and the comparable federal window is generally five years under 18 U.S.C. 3282, or 10 years where a financial institution is involved. The period between learning of an investigation and the filing of charges is often the most important stretch of the entire case, and the choices made during it can determine whether charges are filed at all.

Frequently Asked Questions About White Collar Charges in Michigan

Is Embezzlement a Felony in Michigan?

It depends on the value involved. Under MCL 750.174, embezzlement of less than $1,000 is generally a misdemeanor, while embezzlement of $1,000 or more is a felony. The felony tiers rise with the amount, reaching up to 20 years in prison when the value is $100,000 or more, and separate amounts within a scheme can be aggregated over a 12-month period.

What Is the Difference Between Embezzlement and False Pretenses?

Embezzlement under MCL 750.174 involves money or property that was lawfully entrusted to a person, such as an employee or fiduciary, who then converts it for personal use. False pretenses under MCL 750.218 involves obtaining money or property through a knowing misrepresentation. Both are graded by the value involved and can carry felony penalties up to 20 years at the highest tier.

When Do State Fraud Charges Become Federal?

Fraud commonly becomes a federal matter when it uses the mail or interstate wires, targets a financial institution, or involves federal programs or tax obligations. Federal charges proceed under statutes such as mail fraud at 18 U.S.C. 1341 and wire fraud at 18 U.S.C. 1343, each of which can carry up to 20 years in prison per count.

What Is the Statute of Limitations for Fraud in Michigan?

Most Michigan felonies, including fraud offenses, carry a six-year statute of limitations under MCL 767.24. Federal fraud charges generally carry a five-year limitations period under 18 U.S.C. 3282, extended to 10 years when the fraud affects a financial institution under 18 U.S.C. 3293.

Can Paying Restitution Get Fraud Charges Dropped?

Paying back a loss does not automatically dismiss a criminal charge, because fraud is prosecuted by the state or federal government rather than the victim. Restitution can, however, factor into plea negotiations and sentencing, and early repayment is sometimes part of a broader strategy to reduce charges or exposure.

Can a White Collar Conviction Affect a Professional License?

Yes. A fraud or embezzlement conviction can prompt action by a state licensing board, and professionals such as accountants, financial advisors, nurses, and attorneys may face suspension or revocation separate from the criminal penalty. Because the licensing consequence can outlast the sentence, it should be weighed carefully before accepting any plea.

Is Intent Required to Convict Someone of Fraud in Michigan?

Most Michigan fraud and embezzlement offenses require proof of an intent to defraud or to wrongfully convert property. A genuine mistake, a good faith belief in a right to the funds, or the absence of fraudulent intent can defeat the charge. Intent is frequently the central dispute in a white collar case.

How Does the Government Prove a Fraud Case?

Fraud cases are built largely on documents and the movement of money. Prosecutors rely on bank records, emails, accounting entries, and the testimony of cooperating witnesses to trace funds and show a knowing scheme. Because intent is an element, much of the dispute centers on what a person knew and meant to do, not only on what the records appear to show.

Related Criminal Defense Practice Areas

• Federal criminal charges often grow out of financial schemes that cross state lines or use the banking system.
• Theft offenses overlap with fraud and embezzlement and are graded under Michigan law by the value of the property involved.
• Cyber crime charges frequently accompany fraud allegations when computers, accounts, or online payments are part of the scheme.

Talk to a Michigan White Collar Defense Lawyer

The earliest stage of a financial investigation is usually the most important, and it is the stage when people most often act without counsel. If you are facing a fraud or embezzlement allegation, or you have learned that your records are under review anywhere in Michigan, getting advice before you respond can change the outcome. At Neumann Law Group, our Michigan white collar defense lawyers offer a free and confidential case review, are available 24/7, and work from offices in Detroit, Grand Rapids, and Traverse City. Call (800) 525-6386 or contact our office to talk through your situation.