A Beginner’s Guide To White Collar Crimes By Legal Experts

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Introduction

As our business and financial systems become more complex and competitive in nature, there is a sharp rise in the number of White-Collar Crimes. These crimes, also known as ‘Corporate Crimes’ of ‘Financial Crimes’ are done with the intention of gaining unfavorably in economic terms, avoiding paying fines or penalties, and breaching the trust and confidence.

In the past few years, there have been multiple white-collar crimes, which have been reported in different business spheres, ranging from the stock market to intellectual property rights.

In this article, we speak to leading legal experts and ask them about sharing some basics about White Collar Crimes. We will also help individuals and groups with regard to finding the best legal attorney to represent them in such cases.

History of White-Collar Crimes

In 1939, renowned and highly acclaimed Sociologist, Edwin Sutherland, first coined the term ‘White-Collar Crimes’.

He did so with the simple intention that these types and kinds of crimes were committed by the educated masses. Men who were wealthy, influential, and educated could use their higher intellect, positions, etc. to sway popular opinion, with the intent to gain financially.

Over the years, the crime has expanded from its financial gains spheres and encompassed other areas like not losing a property, avoiding losing money, getting an upper hand on a business transaction, and competition.

According to the Federal Bureau of Investigation (FBI), white-collar crimes have three main features-

  • Deceit or Treachery
  • Concealment or Cover-ups
  • Trust Violations

The agency states that in the past few years it has investigated white-collar crimes in the areas of- government official corruption, laundering of money, commodities and securities fraud, medical fraud, election scams, etc.

Corporate Fraud

If you look at the percentages of crimes regarding white-collar ones, most of them center around corporate fraud. In fact, according to the FBI’s own admission, a majority of white-collar crimes they investigate pertain to corporate fraud.

The reason white-collar crimes under corporate fraud are becoming bigger every day is because of newer financial models, technology, and investment avenues.

Under corporate fraud, a person of influence (a CEO, Director, CFO, COO, CTO, etc.) can disseminate false information, which might lead to speculation in the investment sector.

Forging the financials of the company is another way a corporate fraud can be undertaken. Inflating the value or revenues, assets, etc. can show investors that the company is doing well when in reality, it is about to go bust.

The new investments can be a safety valve for higher management to escape to a non-extradition country.

Money Laundering

Second to Corporate Fraud comes Money Laundering in the most investigated white-collar crimes. Money laundering is a highly intelligent way to siphon off funds to prevent government action and taxation.

According to investigative agencies, money laundering has become a serious area of investigation given how it holds the potential for sponsoring acts of terror against a nation and its citizens. The FBI states that money laundering involves three main parts-

  1. Placement or Assignment- This is the first point of entry of the financial asset (cash, gold, etc.) into the financial system.
  2. Layering or Movement- This is where the actual brains work to hide the money trail by moving the finds in different directions.
  3. Integration or Delivery- The final step involves the return of the money into the hands of the crime after it has been layered, leaving no trail for the authorities.

Money laundering is complex, sophisticated, and requires a lot of experience to escape the investigative authorities. The FBI works with local enforcement agencies and tries to grapple with issues of money laundering.

Ponzi Schemes and MLM

In the last few years, several multi-billion-dollar Ponzi schemes have cheated innocents of their hard-earned money in different parts of the world. This is especially true in developing countries and the underdeveloped world.

Private companies offer unreal returns from daily investments. While they deliver for the first few months, they then stop with the returns and their management runs off with all the cash to some country where extradition is not possible.

Ponzi Schemes make lower-income groups their target as they are the ones, which are most vulnerable to the promises of unreal growth and returns.

The Final Word

It is important to note that some white-collar crimes can be falsely be pointed in the direction of lower-level employees by the higher management, which is responsible for making them in the first place. This is why it is important to have recourse to the best legal attorneys who represent clients in white-collar cases. If you wish to know more about white-collar crimes or find an attorney to represent you in such a case, please visit website.

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