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Legal Gray Areas in Business

Successful business owners get a lot of attention from journalists, content creators, and their audiences. If the numbers of clicks and subscribers are any indication, there are a lot of people out there who aspire to be the next big entrepreneur and will pay attention, or even money, to people who promise to help them do it. There is also a substantial number of people who despise business magnates and consider them the worst of what capitalism has to offer. The members of this latter group celebrate when a court issues a ruling against a big corporation or a regulatory agency orders it to pay fines. Events like these happen frequently, and the businesses keep on rolling; losing money and then getting more money is all in a day’s work for them. 

Business owners getting criminal charges because of their business activities is a less common occurrence. There is a vast divide between breaking some rules or even following rules that annoy customers and committing a financial crime.

If you are facing complaints or legal actions related to your business activities, and you are worried about a current or future legal investigation, contact a Texas white-collar crime lawyer.

It Isn’t Always a Crime to Be a Shady Business Owner

When the state accuses you of a crime, you cannot receive criminal penalties unless you plead guilty or unless the prosecution convinces 12 jurors beyond a reasonable doubt that your actions meet all elements of the definition of the offense. These are some criminal charges that may apply to people who engage in unethical business practices:

● Theft – depriving the legal owner of the property of his or her property

● Fraud – knowingly making false or misleading statements to enrich oneself and cause someone else to suffer financial losses

● Embezzlement – stealing money from a business entity with which one is affiliated

● Tax evasion – making false statements on one’s personal or business tax returns to pay less than what one legally owes, thereby causing financial losses for the public treasury

● Money laundering – falsifying business records to conceal illegal activities, which might include drug trafficking, fraud, or almost any other crime from which one might profit financially

Most of the legal missteps for which businesses face consequences fall far short of meeting the definition of a criminal offense. Furthermore, many of the actions for which businesses face public criticism are technically legal. An example is where advertisements make a company’s services seem less expensive than they are, and customers can only find out the truth by reading the fine print. If this happens frequently enough, customers might sue, and a court might order the company to pay damages, change its policies, or both, but all of this happens in civil court. Where you may run into trouble is if you give a deposition during a civil investigation; you should plead the Fifth Amendment if a lawyer asks you a question where your truthful answer could count as evidence of a crime.

Contact the Law Office of Patrick J. McLain, PLLC About Criminal Defense Cases

Dallas criminal defense lawyer can help you if you are facing criminal charges arising from your business practices. Contact the Law Office of Patrick J. McLain, PLLC, in Dallas, Texas, to discuss your case.

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