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The hidden cost of going soft on white-collar crime 

5 4
31.08.2025

In the last few weeks alone, I have come across two striking instances of white-collar crime.

The first case involves a girls’ summer camp owner who may have cheated parents, vendors and counselors by repeatedly declaring bankruptcy. The second involves a lawyer who may have used his position to dupe a young client into signing ownership of his tech company over to the lawyer himself.

Both cases deserve serious investigation by their respective U.S. Attorney’s Offices. But due to limited resources, it is unlikely they will face real consequences.

It is easy to assume that financial penalties collected by the Department of Justice’s criminal enforcement simply pad the budgets of the agencies imposing them. In reality, fines are directed to the little-known Crime Victims Fund. Consequently, narrowing white-collar enforcement results in more than just uncollected fines. It means defrauded retirees receive no restitution. Domestic violence survivors are turned away at shuttered shelters. Victims of trafficking are left without support.

The Crime Victims Fund supports an average of 4.2 million victims each year, providing critical funding to programs that work with victims of child abuse, domestic violence, identity theft and many other serious offenses. Through annual grants, the Department of Justice distributes funds to the states, which in turn use........

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