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Revisiting White-Collar Crimes


White collar crimes are often committed with the motivation of having financial gain.

The investigations of criminal activities are done by many government agencies. Joint efforts are conducted by the Federal Bureau of Investigation together with the United States Postal Inspection Service, the Securities and Exchange Commission, the Internal Revenue Service, and the Commodity Futures Trading Commission as well as the Treasury Department’s Financial Crimes Enforcement Network.

In this article, let us look at some white collar crimes that you need to know about.

What are the kinds of white collar crimes?

There are different kinds of white collar crimes that are committed by professionals in their activities. The following are the different kinds of white collar crimes:

Corporate Fraud

It has been noted that corporate fraud is one of the most common kinds of a white collar crime. Of course , corporate fraud includes different kinds of frauds under its wing. According to the fbi majority of the cases of corporate fraud are prosecuted under the following crimes:

Insider Trading

Insider trading is one of the most common crimes under this general wing. When the individual who has private material information about a stock decides to use such information for the buying or the selling of a publicly traded company stock, he is considered guilty of insider trading.

The controlling factor here is the fact that the information must be non-public and it must be materials such that if you know the information you would be leaning towards either buying more stocks or selling the stocks that you already own. Any material non-public information that substantially affects and impacts the investors decision to buy or to sell a security is considered as a substantial violation of the law against insider trading.

A perfect example of this crime would be the one committed by Martha Stewart where she sold her stocks in another company, with the knowledge of what might happen next to the company.

Falsification of financial information

Another white collar crime is the falsification of financial information. Here it is already known that a majority of corporate fraud cases involved in accounting schemes are done through falsification of the true financial condition of the company. 

The term “fake it until you make it” is prevalent in some companies but when done to “deceive investors, auditors, and analysts about the true financial condition of a corporation or business entity”, it is considered as a crime.

Embezzlement

A favorite white collar crime in many movies is related to the crime of embezzlement. Embezzlement happens when a person who is entrusted by an employer or another person to handle money or the finances of the company uses such trust to misappropriate funds.

If you have noticed there are a lot of movies and series that have used the concept of embezzlement to show a white collar crime. For example when a politician spends a campaign font for personal expenses or when an employee finds a way to use company money for their own bank account that is considered as investment and is punishable under the law.

Ponzi Schemes

Another very popular kind of white collar crime is in the form of ponzi schemes. A ponzi scheme is a type of an investment scam that promises to its investors high returns for very little to very low risk.

People who engage in ponzi schemes do not put their focus on increasing the investments by investing in a product or developing a product but on attracting new investors in order for them to pay the older ones. Since the older investors think that they are making money, it becomes easier for the old investors to also recruit new investors in the scheme.

Extortion

Another white collar crime is the crime of extortion. Cheer when a person causes another person or an institution into giving up their money, their property, or services for no money or nothing in return, it is considered as extortion.

Haque Legal is Here For You

If you have committed a white collar crime or needs help prosecuting one, it is important to know that you also have a team that can help you out with your specific needs. Our law firm is dedicated to making sure that those who are innocent will be protected by the law and the full extent of justice will be used.

Disclaimer

The article that you have read is based on general applications of the law. It is not legal advice and it is not to be construed as any legal consultation with the firm. No client-attorney relationship is created when you read the articles we have provided.

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If you’ve been charged with a White Collar crime you need a criminal defense lawyer on your side, call us immediately. If you have any problem with the law or are seeking justice and truth, our numbers are standing by to take your call.