Former U.S. Attorneys Predict Spike in Federal White-Collar Prosecutions

A review of recent information and current and historical data supports the prediction of the increase of federal white-collar investigations and prosecutions.

As the $2 trillion stimulus package enters the economy, the U.S. Department of Justice and United States Attorneys’ Offices are prioritizing the investigation and prosecution of COVID-19 related fraud schemes.

Syracuse University’s Transactional Records Access Clearinghouse (TRAC) reports that while overall federal prosecutions are up 25 percent from five years ago, white-collar prosecutions are down almost 30 percent.

Looking back more than a decade ago, federal spending in the aftermath of Katrina was approximately $120 billion. Federal prosecutions resulting from Katrina-related fraud exceeded 1,300. To put these numbers in perspective, Katrina federal spending was only 6 percent of the current stimulus package.

Given the current prioritization of COVID-19 prosecutions, the historical downward trend of white-collar prosecutions and the number of the prosecutions post Hurricane Katrina, there will be an increase in the number of federal white collar prosecutions.

Please contact former U.S. Attorneys Harry Rosenberg, A. Brian Albritton or Walt Green if you have any questions regarding this white-collar/government investigations update.