Contributor: Adam Justinger
Introduction
When most people hear the term “white collar crime,” they picture The Wolf of Wall Street; a slick stockbroker in an expensive suit, pumping penny stocks from a New York trading floor. It’s an entertaining image, but in North Dakota, white collar crime rarely looks like Wall Street. It usually looks like Main Street. It’s the bookkeeper who “borrows” from the business account, the small business owner who fudges a document to get a loan, or the employee who uses the company credit card for personal purchases. There is no single “white collar” chapter in the North Dakota Century Code, but these offenses are found throughout the Code and can carry serious penalties.
Theft and Embezzlement
In North Dakota, there is no separate crime called “embezzlement.” Section 12.1-23-01 of the North Dakota Century Code consolidates embezzlement, false pretenses, fraudulent conversion, swindling, and similar conduct into a single offense of theft. Under Section 12.1-23-02, a person is guilty of theft if they knowingly take unauthorized control over another’s property, or obtain it by deception, with intent to deprive the owner. In other words, the employee who allegedly skims from the till or the person who talks someone out of their savings could be charged with the same crime.
Misapplication of Entrusted Property
Under Section 12.1-23-07, a person entrusted with property as a fiduciary, public servant, or financial institution employee commits misapplication of entrusted property if they use or transfer it in a way they know is unauthorized and risks loss to the owner. This can include trustees, guardians, personal representatives, and bank employees. Under this statute, the State does not have to prove the person intended to steal anything. Instead, it is enough that the person knew the use was unauthorized and knew it put the property at risk.
Forgery and Deceptive Writings
Under Section 12.1-24-01, a person commits forgery if, with intent to deceive or harm another, they knowingly and falsely make, complete, or alter any writing, or knowingly use a forged writing. A “writing” includes checks, contracts, deeds, affidavits, credit cards, and even signatures. Signing someone else’s name on a check or altering a loan document can lead to forgery charges.
Identity Theft
Section 12.1-23-11 makes it a crime to use another person’s personal identifying information, living or deceased, to obtain credit, money, goods, services, or anything of value without their consent. This includes a person’s name, Social Security number, bank or card numbers, and usernames and passwords. It is also a crime to use that information to open an account or obtain employment, even if no one loses any money.
Securities Fraud
This is where things look most like The Wolf of Wall Street. North Dakota’s Securities Act, found in Chapter 10-04 of the North Dakota Century Code, prohibits schemes to defraud in connection with the sale of a security, selling unregistered securities, and acting as an unregistered agent. In North Dakota, these schemes could involve oil wells and mineral interests rather than penny stocks.
Penalties
White collar offenses can carry a wide range of penalties, anywhere from a misdemeanor to a felony. In many cases, the penalty depends on the dollar amount involved. For example, a class A misdemeanor carries a maximum penalty of 360 days imprisonment, a $3,000 fine, or both. If you’re charged with a class A felony, the maximum penalty is 20 years imprisonment, a $20,000 fine, or both. Generally, restitution can also be ordered in these cases.
In Conclusion
You don’t have to be a Wall Street stockbroker to be charged with a white collar crime in North Dakota. These cases are often document heavy, involve complex financial records, and carry serious consequences. If you’ve been charged with a white collar crime in North Dakota please contact Adam Justinger or Jesse Lange of SW&L Attorneys at 701-297-2890. For future articles, check out our blog. This article is for informational purposes only and is subject to our disclaimer.
