July 18, 2023 Last Updated: October 16, 2025 by Anthony Riccio
White collar crimes are often seen as less dangerous because they don’t involve violence, but the damage they cause can be just as severe. In Massachusetts, charges such as insider trading, embezzlement, and fraud can lead to heavy fines, years in prison, and reputations that never recover.
Entire businesses have crumbled, and professional careers have ended because of these offenses. This article takes a closer look at how these crimes are defined, the penalties they carry, and the defenses available under both Massachusetts and federal law.
White collar crimes are financial offenses committed through deceit or misuse of trust. They are usually prosecuted under Massachusetts General Laws Chapter 266 (covering theft and fraud) and Chapter 110A (addressing securities violations), but many cases also involve federal law.
Examples include securities fraud, insider trading, misappropriation of company funds, and healthcare scams. While these crimes happen in offices rather than on the street, their financial and social consequences are far-reaching.
Insider trading happens when someone buys or sells stocks using material information that has not been made public. This type of conduct gives insiders an unfair advantage over ordinary investors, eroding trust in financial markets and compromising the level playing field that securities laws are designed to protect.
Federal prosecutors and agencies like the Securities and Exchange Commission (SEC) treat insider trading cases very seriously. Investigations often involve wiretaps, trading records, and testimony from cooperating witnesses.
Convictions can lead to steep fines, bans from future securities trading, and lengthy prison terms. Massachusetts law also recognizes insider trading as a serious offense, applying similar standards to those enforced federally.
Under federal law, securities fraud tied to insider trading can carry penalties of up to $5 million in fines and prison sentences of as long as 20 years.
Defense strategies in these cases often center on the nature of the information itself. An attorney may argue that the data was already public, that it was not significant enough to influence a reasonable investor’s decision, or that the accused had no legal duty to keep the information confidential.
Embezzlement occurs when someone entrusted with funds or property misuses them for personal benefit. Unlike theft by a stranger, embezzlement typically involves an employee, manager, or professional in a position of trust who has legitimate access to company resources but diverts them for unauthorized purposes.
Massachusetts treats embezzlement as a form of larceny under Chapter 266 §30 of the General Laws. The severity of the charge depends on the amount involved: smaller sums may be prosecuted as misdemeanors, while larger amounts can lead to felony charges and lengthy prison sentences.
In Massachusetts, embezzling more than $1,200 is considered a felony, carrying penalties of up to five years in state prison and fines that may reach $25,000.
Defenses often focus on intent. An attorney may argue that the accused believed they had permission to use the funds, that mistakes in record-keeping led to misunderstandings, or that there was no intent to permanently deprive the owner of their property.
Fraud involves deliberate misrepresentation or deceit intended to secure financial or personal gain. It can take many forms, including falsified financial records, identity theft, healthcare billing scams, or deceptive investment schemes. Because it is so varied, fraud can affect individuals, businesses, and entire industries.
In Massachusetts, fraud is prosecuted under different sections of Chapter 266 of the General Laws, depending on the type of conduct involved. On the federal level, common charges include mail fraud and wire fraud, which apply whenever communications systems are used to carry out a scheme. These laws give prosecutors broad authority to pursue fraud that crosses state or national lines.
Federal mail and wire fraud statutes each carry penalties of up to 20 years in prison, and in cases involving financial institutions or federal disaster relief, sentences can be even longer.
Investigations are often complex, involving forensic accountants, regulatory agencies, and law enforcement such as the FBI or SEC. A conviction may result in prison, significant fines, restitution to victims, and long-term restrictions on professional activity.
White collar crimes carry severe penalties, often harsher than people expect. Convictions may lead to prison, heavy fines, restitution to victims, and civil lawsuits. Beyond the courtroom, reputations are destroyed, professional licenses may be revoked, and employment prospects shrink.
|
Crime Type |
Legal Reference (MGL / Federal) | Penalty (Misdemeanor) | Penalty (Felony) |
Additional Consequences |
| Insider Trading | MGL Ch. 110A / Federal SEC laws | Fines up to $10,000 | Prison up to 20 yrs, fines up to $5M | Civil lawsuits, SEC bans |
| Embezzlement | MGL Ch. 266 §30 | Up to 2.5 yrs jail, $1,500 fine | Up to 5 yrs prison, $25,000 fine | Restitution, loss of employment |
| Fraud (various) | MGL Ch. 266 / Federal wire fraud | Up to 2.5 yrs jail | Up to 20 yrs federal prison, fines up to $5M | Civil penalties, restitution |
Prosecutors must prove guilt beyond a reasonable doubt, and defense strategies often focus on intent, knowledge, or procedural issues.
In insider trading cases, attorneys may argue trades were based on public information. In embezzlement cases, the defense may point to bookkeeping mistakes or lack of fraudulent intent. In fraud prosecutions, it may be possible to show the defendant reasonably believed the statements made were accurate.
An experienced Massachusetts criminal defense attorney can review evidence, identify weaknesses in the state’s case, and build a tailored defense strategy.
The consequences of white collar crimes reach far beyond the courtroom. For businesses, losses may run into millions, reputations may crumble, and regulatory agencies may impose restrictions that damage operations. Trust within the organization often collapses, affecting morale and productivity.
For individuals, the effects can be permanent. Convictions lead to job loss, difficulty finding new employment, and the revocation of professional licenses. The emotional toll and stigma can strain families and affect mental health long after the case ends.
White collar crimes like insider trading, embezzlement, and fraud may not involve violence, but their consequences are often just as severe. Convictions in Massachusetts can mean heavy fines, restitution, and prison sentences, along with damage to careers and reputations that may never fully recover. These cases are complex, and prosecutors often devote significant resources to building them.
If you are under investigation or already facing charges, the decisions you make early on will shape the outcome. Having an experienced defense attorney by your side can protect your rights and give you the best chance at a favorable result.
Attorney Anthony Riccio, founder of Riccio Law, provides personalized and strategic defense for clients accused of serious financial crimes. As a single-attorney firm, Riccio Law offers direct attention to every case and the determination to challenge the government’s evidence at every stage.
For more information about state laws, review the Massachusetts General Laws. To learn about federal enforcement, visit the U.S. Securities and Exchange Commission.
