What Are the Most Common White Collar Crimes?
“White collar crime” is a broad term that covers a lot of different activities. These crimes often involve breaking trust or violating the rights of another individual while operating in a business capacity.
White Collar Crimes: Why They Can Negatively Impact Careers
While collar crimes are offenses that can have lasting consequences on your reputation and future career opportunities. While they may not involve physical violence, they can be just as damaging to a victim’s well-being and sense of security.
If you’re unsure what qualifies as a white-collar crime, the following information will provide good examples. We’ll also offer insights into how these offenses are prosecuted, the penalties for conviction, and how to protect yourself from potential risks in the future.
There are a number of crimes that are commonly associated with the white-collar demographic. White collar crimes tend to involve a person in a position of authority or trust, such as an executive or someone handling money for their company, who uses their position to commit fraud or similar type of activity.
Therefore, these crimes may be committed by executives, business owners, accountants, attorneys, and others in similar positions of fidelity – people whose criminal actions may place an operation at risk. In some instances, white-collar criminals may falsify documents or records – with the intent of deceiving regulatory officials or investors.
Fraud and the White Collar Criminal
Fraud is the intentional act of deceiving someone for personal gain. This includes any scheme or act meant to swindle investors, creditors, or others in order to receive money that is not earned or to avoid paying money that is owed.
Types of fraud include investment fraud, insurance fraud, employee fraud, credit card fraud, and mortgage fraud, just to name a few. Executive fraud occurs when an executive or business owner uses company funds for personal gain. This type of fraud may be committed in a number of ways, including embezzlement, insider trading, or check fraud.
Wire Fraud and Computer Hacking
Wire fraud is a type of fraud that specifically involves misrepresenting information in order to obtain money, goods, or services through electronic communications. In other words, people use computers to trick people out of their money or steal cash.
Wire fraud may occur when a person lies about who they are (impersonation), what they are offering (fraud), or where their business is located (misrepresentation). A classic example of wire fraud is hacking.
Wire fraud may use electronic communications in various scenarios – whether it is social media, faxing, emailing, or phoning. It’s done to make a profit. This type of fraud can land you in prison for as long as 20 years. In addition, you may pay excessive fines.
Computer crimes are often white-collar crimes because they frequently involve hackers who break into networks and steal money or personal information. The crimes are common among white-collar criminals because they can commit them remotely, making it difficult for investigators to track them down.
Identity Theft
Identity theft occurs when an individual steals another person’s personal information for personal financial gain. Identity theft affects millions of people each year, and the amount of money stolen is increasing regularly.
This type of theft may take place online, through paper documentation, or by acquiring stolen property. A variety of crimes fall under the identity theft umbrella, including social security fraud, credit card fraud, and medical identity theft.
Identity theft is a white-collar crime because it often involves people in positions of authority misusing information that was supposed to be kept private and personal.
Securities Fraud
Securities fraud occurs when someone lies about the nature of security or false claims that the security is legitimate when it is not.
Securities fraud may cover a broad category that includes activities, such as insider trading or Ponzi schemes. A Ponzi scheme is one of the most common types of securities fraud practiced.
In this scheme, a person or group takes money from new investors to pay off previous investors. The person running the scheme often has no intention of repaying the previous investors, which leaves the people at the bottom of this pyramid without money.
Tax Evasion
Tax evasion occurs when someone intentionally does not pay the taxes they owe. It can include underreporting income, not reporting all taxable income, claiming false deductions, or not filing a tax return at all.
The Internal Revenue Service (IRS) estimates that every year, billions of dollars in taxes go uncollected due to evasion.
A Quick Review of White Collar Crimes and Their Impact
White-collar crimes often involve people in positions of trust or authority who know how to exploit the system and make false claims. These crimes are not limited to people in business suits though. Anyone who works with computers or is in charge of bookkeeping may be charged with a white-collar crime.
Penalties for White Collar Crimes
According to the Legal Information Institute (LII) of the Cornell Law School, the penalties assessed for white-collar offenses may include home detention, community confinement, high fines, forfeitures, supervised release, restitution, or federal imprisonment.
Moreover, the sentencing guidelines of the federal government recommend that offenders serve longer prison terms when at least one victim suffered significant harm financially.
Contact a White Collar Crimes Lawyer About Your Case Today
If you’re under suspicion for a white-collar crime or you have been charged with this type of offense, you need to review your legal options immediately. The only way to do this is to contact a white-collar crimes attorney. Call Jance M. Weberman today at (213) 386-9100 to set an appointment for a consultation.