In our previous blog post, we discussed the case of the two non-profit organizations that were being accused of using federal grant funds inappropriately. If you recall, those two organizations could face criminal charges based on the allegations. That story brings up the subject of white collar crimes.
What is a white collar crime?
A white collar crime is one that used deception for financial gain. Examples of white collar crimes are embezzlement, fraud, money laundering and tax evasion. In some cases, scams like Ponzi schemes can lead to white collar crime charges.
What are some common fraudulent schemes that are considered white collar crimes?
Insurance fraud and mortgage fraud are two types of fraudulent schemes that are considered white collar crimes. In the case of insurance fraud, a person might provide false information to make a claim and collect insurance money. The false information might provide the basis for a criminal charge.
What is embezzlement?
Embezzlement occurs when you take money from someone to whom you owe a duty. An employee who moves money from a business to his or her personal account is committing embezzlement.
What is an example of securities fraud?
One example of fraud is securities fraud, which can take many forms. Insider trading, for example, is a type of securities fraud. This occurs if someone who is privy to confidential information about a publicly traded company uses that information as the basis of activity with his or her stocks.
White collar crimes can be very serious. The penalties for convictions on these crimes can affect every aspect of a person's life. Building a defense against these types of charges is necessary if you find yourself named as a defendant in the case.
Source: FindLaw, "White Collar Crimes," accessed Aug. 26, 2015