White-collar crimes do not involve direct physical contact with an individual or property and are, instead, committed by professionals within the context of their occupation. Specialist white-collar crime lawyers are necessary to manage these cases as they are often extremely complex; especially because the consequences can often be severe. There are a wide range of crimes that would be classed as white-collar. Read on for some common examples.
Five Examples Of White-Collar Crimes
1. Insider Trading
Insider trading involves a trader buying or selling stock with the benefit of possessing information that is not publicly available. For example, a CEO may tell their friend that their company is soon to be acquired, and that friend may sell their shares before the acquisition information is made public.
At first glance, this may seem like a nice gesture, but it is illegal. This is because it violates trust and the legal responsibility of the CEO. The victims here are ordinary investors, who will lose money.
2. Ponzi Schemes
Ponzi schemes are named after Charles Ponzi, who famously created the first example with a postage stamp speculation scheme in the 1920s. This type of fraud involves paying returns to earlier investors solely using funds contributed by new investors. There is no product or legitimate business.
Because there is no actual business making money, Ponzi schemes rely on a constant influx of new investors. When these new recruits inevitably dry up, the last people to join the scheme will lose all their money.
3. Money Laundering
For criminals, money laundering is an essential step in ensuring they can use the profits they make from their crimes. It is the process of turning “dirty” money that has been made through criminal acts into “clean” money that can be used legitimately. It involves three stages:
- Placement
- Layering
- Integration
For example, a cash-based business such as a restaurant is often used. The cash receipts can be altered to show a higher amount than was actually taken, and the dirty cash is then mixed with the legitimate takings. All of the money is taken to the bank, and it appears as though it has all been gained through normal business operations.
4. Embezzlement
In embezzlement, an employee uses their position to misappropriate funds or assets that they have been entrusted with taking care of. They might move company funds into their personal bank accounts, falsify expense reports so they receive more money than they should, falsify overtime records, or move money from customer accounts to their own and hide the evidence.
The key characteristic of embezzlement is the abuse of trust placed on the individual because of their occupational position. Check out this site to see how a white-collar crime lawyer might help someone accused of embezzlement or other white-collar crimes.
5. Intellectual Property Theft
Intellectual property (IP) refers to creations that come from someone’s mind. This could be music, art, literature, designs, symbols, inventions, software, products, brand names, proprietary information, and trade secrets. These creations are protected through patent, trademark, and copyright law. Intellectual property theft is when these creations are used, exploited, or stolen without permission. This crime can damage individuals, and businesses, both large and small.
White-collar crime is more common than many people may think. It can range from seemingly benign actions, like fudging your expense account, to large-scale fraud operations. Regardless of the type of white-collar crime someone is accused of, they should always ensure that they have experienced and professional representation. A guilty verdict can mean the loss of a career, plus jail time or a fine, so finding the right lawyer is vital.
