< Go Back What is White Collar Crime? Posted: Aug 23, 2022White collar crime, although non-violent or non-directly violent, is by no means a victimless crime. It is primarily a financial crime that can affect anyone, from a person right up to large corporations and government institutions. It boils down to deceiving someone for monetary gain, and it can affect anyone.
It can be any financial transaction whereby money is transferred to a third party by deceit. The most common ones will be fraud and embezzlement. Any form of financial transaction can be targeted in white collar crime, which is why individuals and company treasurers should always be alert to the possibility of their finances being compromised.
What Does White Collar Crime Mean? There is no simple definition of white collar crime as it covers a range of illegal activities that will result in a monetary loss to the victims. A definition of white collar crime by a sociologist in 1939 was, “A crime committed by a person of respectability in the course of their occupation”. This notion still applies in the modern world but the possibilities of white collar crime have expanded massively.
These crimes are often committed by people with considerable financial acumen with a detailed knowledge of their target institution, it is not unusual that someone working in the business will commit the crime, known as an insider.
Their knowledge is used for fraud and embezzlement, or gains can be made using inside information and insider trading. Financial professionals play a role in tax evasion and VAT fraud with creative accounting, depriving the government of tax receipts.
Criminals will use money laundering to “wash” illegal gains they have made, making it look like the money came from legitimate sources.
There is often the presumption that financial crime only affects big business and institutions and is, therefore, “Victimless”. This is far from the truth, unlucky individuals can lose all their savings, and companies could find themselves in financial difficulty. An example of financial crime with obvious victims is that it aids and abets humanitarian tragedies such as modern slavery, a finding supported by NGOs
What Is An Example Of White Collar Crime? Here are some examples and what is involved:
Fraud: False accounting, illicit transactions, insider dealing, and tax.
Money laundering: Lets criminals hide wealth, avoid taxes, prosecution, and funds further criminal activity.
Mortgage and Financial Institution fraud: Criminals target banks, building societies, and other financial institutions.
Intellectual property theft: Robbing people and companies of their ideas and innovations. Everything from trade secrets to proprietary products.
Embezzlement: Taking money from someone you owe a duty of care to, E.g., Lawyers improperly using a client’s funds.
Tax Evasion: a common white collar crime. Involves individuals or businesses evading taxes by providing false information.
These crimes require a level of expertise in sophisticated financial dealings and often the help of accomplices in the targeted businesses.
Lawyers who specialise in white collar crime will advise clients through the investigative process and civil and criminal litigation. Clients typically cover a wide spectrum from large corporations, banks, right down to individuals. Lawyers in this field have an in-depth knowledge of the regulatory environment of organisations, and the business operations of the client.
Contact Fosse Law for expert advice and legal support to help your business deal with a case of white collar crime. Their legal team can support you through a wide range of investigations and prosecutions within any business sector.
You can get in touch by calling0116 262 0290or emailing the friendly and helpful team at info@fosselaw.com.
