Understanding Federal Crimes in the United States

The landscape of American criminal law is intricately divided between federal and state jurisdictions, each with its own set of rules, procedures, and offenses. This article delves into the nuances of federal crimes, exploring their distinction from state offenses, the roles of the judiciary and prosecutors at both levels, the conviction rates, and the various stages of the federal criminal process.

Federal vs. State Offenses: The Legal Divide

Federal crimes, governed by United States federal laws, often encompass offenses that cross state boundaries or impact national security. State offenses, on the other hand, are violations of specific state laws. A prominent example illustrating this divide is the case of financial frauds, such as the Bernie Madoff Ponzi scheme. Madoff’s scheme, impacting investors across several states, was adjudicated under federal law, leading to his conviction on federal charges.

The Framework of Federal and State Legal System

The federal legal system, with its courts, judges, and prosecutors (U.S. Attorneys), handles cases involving federal law and constitutional issues. Federal judges are presidential appointees, serving lifetime terms, whereas federal prosecutors represent the United States in these courts. In contrast, state legal systems comprise courts that deal with state law violations, with judges typically elected or appointed through state-specific processes. State prosecutors, often known as District Attorneys, prosecute these cases. The key distinction lies in the types of cases they handle and the sentencing guidelines they follow, with federal courts often dealing with more complex legal issues.

Steps in the Federal Criminal Process

The federal criminal process is a multi-stage journey, starting with the indictment and culminating in sentencing. Ronald W. Chapman’s legal blog offers a wealth of information on each stage of this process, providing insights and guidance for those facing federal charges.

Federal Indictment

This article details the grand jury process and what an indictment means in the federal system.

Federal Arrest and Bond

Here, you can learn about the arrest procedure and the subsequent bond/bail process in federal cases.

Selecting a Federal Attorney

Choosing the right legal representation is crucial, and this article guides you through the process.

Federal Trials

Understand the federal trial process, from jury selection to verdict.

Federal Sentencing Guidelines

This piece explains the sentencing phase in federal court, including guidelines and factors influencing sentencing decisions.

Federal Plea and Cooperation

Explore the nuances of negotiating plea deals and the potential for cooperation with federal authorities.

Want an insider’s guide to Federal Investigations?

 Federal Criminal Conviction Rates and Statistics: A Closer Look

Federal Criminal Case Results 2021

As you can see in the chart, the vast majority of federal criminal cases are resolved by a plea of guilty, 57,326. The number of federal trials is also minuscule in comparison to the 63,322 federal cases filed each year just 928. Of the 928 defendants who went to a jury trial, 778 of them were convicted and only 150 were acquitted. Eight cases ended in a mistrial, which is a surprisingly low number.

To the average federal defendant, these numbers may seem bleak and suggest that once charges are filed their fate is almost certain. The saving grace is that these statistics are heavily skewed due to immigration offenses in which nearly all defendants plead guilty in exchange for rapid deportation.

Federal Criminal Case Results 2021

List of Federal Crimes, Elements, and Statutory Maximum Punishments

Federal crimes range from drug trafficking and fraud to money laundering and racketeering. While these are common, the federal criminal code also includes less frequent but significant offenses like espionage, federal hate crimes, and immigration violations.

Drug Trafficking

Statute: 21 U.S.C. § 841

Elements: Possession, distribution, or manufacturing of illegal drugs; Intent to distribute.

Historical Case Example: United States v. Barnes, 604 F.2d 121 (2d Cir. 1979). Leroy 'Nicky' Barnes was convicted for operating a drug trafficking ring. The case was significant due to Barnes' notorious status in the drug world and the use of extensive wiretapping for evidence.

Maximum Penalty: Life imprisonment; varies based on drug type and quantity. (21 U.S.C. § 841(b))

 

Fraud (Mail Fraud)

Statute: 18 U.S.C. § 1341

Elements: Deceptive or false statement; Intent to defraud; Use of mail services.

Historical Case Example: United States v. Jeffrey Skilling (Enron). Skilling, Enron's former CEO, was convicted of multiple fraud and conspiracy charges related to the Enron scandal, which involved hiding financial losses of the energy company from investors.

Maximum Penalty: Up to 20 years imprisonment. (18 U.S.C. § 1341)

 

Money Laundering

Statute: 18 U.S.C. § 1956

Elements: Conducting a financial transaction with proceeds from illegal activity; Knowledge of the illegal origin of the proceeds.

Historical Case Example: United States v. Lazarenko, 564 F.3d 1026 (9th Cir. 2009). Pavel Lazarenko, a former Ukrainian Prime Minister, was convicted of money laundering involving millions of dollars.

Maximum Penalty: Up to 20 years imprisonment. (18 U.S.C. § 1956(a)(1))

 

Racketeering (RICO)

Statute: 18 U.S.C. § 1962

Elements: Participation in an enterprise through a pattern of racketeering activity.

Historical Case Example: United States v. Gotti, 753 F.2d 229 (2d Cir. 1985). John Gotti, head of the Gambino crime family, was convicted under RICO for various crimes, including murder and extortion.

Maximum Penalty: Up to 20 years per count; life imprisonment if racketeering activity involved murder. (18 U.S.C. § 1963)

 

Conspiracy (General Conspiracy)

Statute: 18 U.S.C. § 371

Elements: Agreement between two or more persons to commit an illegal act; An overt act in furtherance of the conspiracy.

Historical Case Example: United States v. Shabani, 513 U.S. 10 (1994). This case clarified the overt act requirement in drug conspiracy cases.

Maximum Penalty: Up to 5 years imprisonment. (18 U.S.C. § 371)

 

False Statements

Statute: 18 U.S.C. § 1001

Elements: Making a false statement, falsifying, or concealing information; Materiality of the statement; Intent to deceive a federal agency or official.

Historical Case Example: United States v. Martha Stewart, 274 F. Supp. 2d 368 (S.D.N.Y. 2003). Martha Stewart was convicted of making false statements to federal investigators regarding a stock sale.

Maximum Penalty: Up to 5 years imprisonment. (18 U.S.C. § 1001)

Tax Evasion

Statute: 26 U.S.C. § 7201

Elements: Willful attempt to evade or defeat tax.

Historical Case Example: United States v. Al Capone, 37 F.2d 147 (7th Cir. 1931). Notorious gangster Al Capone was convicted of tax evasion.

Maximum Penalty: Up to 5 years imprisonment. (26 U.S.C. § 7201)

 

Identity Theft

Statute: 18 U.S.C. § 1028

Elements: Unauthorized use of another person's personal identifying information to commit fraud or other crimes.

Historical Case Example: United States v. Hargrove, 420 F.3d 1304 (11th Cir. 2005). This case involved significant identity theft and credit card fraud.

Maximum Penalty: Up to 15 years imprisonment. (18 U.S.C. § 1028(a)(7))

Child Pornography Offenses

Statute: 18 U.S.C. § 2251

Elements: Production, distribution, receipt, or possession of child pornography.

Historical Case Example: United States v. Knox, 32 F.3d 733 (3rd Cir. 1994). This case involved significant legal debate on what constitutes child pornography.

Maximum Penalty: Up to 30 years imprisonment for production, up to 20 years for distribution. (18 U.S.C. § 2251)

 

Bank Robbery

Statute: 18 U.S.C. § 2113

Elements: Taking or attempting to take anything of value from a bank by force, violence, or intimidation.

Historical Case Example: United States v. Clark, 915 F.2d 639 (11th Cir. 1990). A notable bank robbery case involving the use of force.

Maximum Penalty: Up to 20 years imprisonment. (18 U.S.C. § 2113(a))

 

Immigration Offenses

Statute: 8 U.S.C. § 1325

Elements: Illegal entry, re-entry, or smuggling of non-citizens; Falsification of documents.

Historical Case Example: United States v. Arizona, 641 F.3d 339 (9th Cir. 2011). This case involved challenges to Arizona's strict immigration laws.

Maximum Penalty: Varies by specific offense, up to 10 years for illegal re-entry. (8 U.S.C. § 1325)

 

Computer Crimes (Cybercrime)

Statute: 18 U.S.C. § 1030

Elements: Unauthorized access to a computer; Intent to commit a federal crime or fraud.

Historical Case Example: United States v. Aaron Swartz, No. 1:11-cr-10260 (D. Mass. 2011). Swartz faced charges for unauthorized access to a computer network (JSTOR).

Maximum Penalty: Up to 10 years imprisonment. (18 U.S.C. § 1030(a)(4))

 

Securities Fraud

Statute: 15 U.S.C. §§ 78j(b) and 78ff

Elements: Deceptive practices in the stock or commodities markets; Insider trading.

Historical Case Example: United States v. Rajaratnam, 719 F.3d 139 (2nd Cir. 2013). Raj Rajaratnam, a hedge fund manager, was convicted of insider trading.

Maximum Penalty: Up to 25 years imprisonment. (15 U.S.C. § 78ff)

 

Environmental Crimes

Statute: 33 U.S.C. § 1319(c)

Elements: Violation of environmental laws, such as illegal dumping of pollutants.

Historical Case Example: United States v. BP Exploration and Production Inc., 828 F. Supp. 2d 797 (E.D. La. 2012). This case related to the Deepwater Horizon oil spill.

Maximum Penalty: Varies by specific offense, potentially up to 15 years imprisonment. (33 U.S.C. § 1319(c)(1))

 

Arson

Statute: 18 U.S.C. § 844(i)

Elements: Willful and malicious burning of property.

Historical Case Example: United States v. O’Hagan, 521 U.S. 642 (1997). This case involved arson and mail fraud.

Maximum Penalty: Up to 20 years imprisonment; life imprisonment if death results. (18 U.S.C. § 844(i))