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Understanding white collar crimes

| Jan 4, 2021 | Uncategorized |

Not all crimes involve violent actions. In fact, one common type of non-violent criminality is white collar crime.

There are different types of white collar crime, and they are costly and can devastate individuals, families and companies.

Facts about white collar crime

According to the Federal Bureau of Investigations, white collar crime refers to a wide range of scams executed by professionals in business and the government. In contrast to violent criminals, these use concealment, deceit and trust violation for financial gain.

Although they may not seem as serious as some other offenses, these crimes cost the United States billions of dollars in economic loss. They also result in the loss of life savings of an individual or can destroy a business.

Types of white collar crime

The FBI mainly focuses its investigations on the most common white collar crimes. The highest priority is corporate fraud, as associated offenses result in investor confidence loss and immeasurable economical damage. Some examples of this type of fraud include financial information falsification, hedge fund fraud and insider self-dealing.

According to Northcentral University, the other common types of white collar crime include:

  • Ponzi schemes: Investment scams that pay older investors with money from new investors
  • Embezzlement: The misappropriation of funds
  • Bankruptcy fraud: The hiding of nonessential assets to avoid paying creditors during bankruptcy
  • Extortion: The coercement of an individual or institution to give up money, property or services

Investigating these crimes requires the work of not only the FBI, but also the Internal Revenue Service, the Securities and Exchange Commission, the U.S. Postal Service and the U.S. Customs and Border Protection. Penalties for a white collar crime conviction include imprisonment, fines, restitution, forfeitures and house arrest.