Common Types of White Collar Crimes
White collar crime is a common term that is used to describe typically such crimes that involve acts of deceit and deception motivated by monetary gain. Different types of fraud, tax evasion, embezzlement of funds, and money laundering are some of the common white collar crimes. A number of unscrupulous schemes, offers, and scams also fall within the purview of white collar crimes. These may include examples such as insider trading, insurance fraud, and Ponzi schemes. Such crimes may involve federal as well as state laws, depending on the case. Experienced Fort Lauderdale criminal defense lawyers may help to assess potential criminal liability and offer the best possible legal advice.
Insider Trading and other Securities Fraud
A number of fraud may constitute white collar crime. Securities fraud is one of the serious white collar crimes that may involve a large amount of funds. Moreover, insider trading is among the types of securities fraud. In this type of fraud, a person who has privileged inside information about a publicly traded company performs share trading based on that information. Such fraud may be committed typically by people who are employed or associated with the company, and who misuse their position and violate an obligation or duty.
Another common form of securities fraud takes place when people associated with a company knowingly misrepresent the company’s financial status and future prospects to allure investors. Public reports and statements issued by publicly traded companies that may include intentionally false or misleading information may also constitute securities fraud. Persons committing such fraud should have a reasonable knowledge of the falsehood of their claims.
Fraudulent Schemes as White Collar Crime
White collar fraud is a common problem with many fraudsters looking to deceive vulnerable people and companies for financial gain. Insurance policy fraud, mortgage fraud, credit card fraud, and cheap financial loan schemes are some of the typical white collar fraudulent formulas. A simple fraudulent insurance scheme may involve an individual collecting a false insurance claim by fabricating evidence and falsifying documents.
On a larger scale, a fraudulent company may attempt to defraud investors or customers by luring them into a false membership plan. Credit card related scams, cheap loan schemes, and Ponzi schemes to dupe innocent customers and investors are among the more prevalent white collar crimes harnessed by a devious set of people. The nature, size, and scale of such fraud may vary widely. Some people believe government plans like social security is a legalized Ponzi scheme. Furthermore, perpetrators of such fraud may seek the legal opinion from Fort Lauderdale criminal defense lawyers to protect their rights under the law. Perhaps this was just an honest mistake.
Embezzlement of Funds
Embezzlement typically involves swindling another person of a sum of money to whom some type of duty is owed. Perhaps the most common type of embezzlement is instigated by unscrupulous employees of a company who misuse their perfectly suited position to misappropriate the funds of their company for their personal gain.
Other forms of embezzlement may include the improper use of a client’s money by a professional service provider such as an attorney, a management consultant, or an architect. An investment advisor entrusted with the client’s funds for investment while misusing it for other purposes may also constitute embezzlement.
Money Laundering and Tax Evasion
Money laundering is a serious and complex financial crime that involves the routing of illegally acquired funds through a number of superficial transactions designed to cheat the authorities and make the funds appear legitimate. This crime usually involves three stages. In the first stage, the illegal funds are deposited with a bank, brokerage, or another financial institution. In the second stage, the funds are distanced from their illegal origins by covering them through layers of complicated financial transactions that make it very difficult to trace the illegal source of funds. At the third stage, the laundered funds are integrated with other legally acquired funds to make it near-impossible to identify the illegal money.
Criminal tax evasion occurs when an individual or an entity attempts to falsify tax related information and documents to escape from tax obligations. Both tax evasion and money laundering are white collar crimes. Fort Lauderdale criminal defense lawyers may be able to help to evaluate the potential extent of criminal liability involved in such a case.