Securities Fraud
Securities fraud is one of the most common types of white collar crime committed today. This white collar crime occurs almost exclusively in the corporate world. The most common form of securities fraud is that of insider training. Insider trading occurs when a person who has information about the company for which they work and uses it to their financial advantage.
Another form of securities fraud occurs when a person solicits investments in his or her company by misstating the current health, finances, or prospects of the company. Securities fraud is committed in this circumstance when the employees of the company mislead an investor about the status of the company so that they invest their money.
Tax Evasion
Tax evasion is another type of white collar crime. This crime occurs when the subject attempts to avoid paying taxes on their income or sales of assets. Evasion of taxes can occur in multiple forms, including submitting incorrect tax information to the government or hiding assets so that they are not subject to taxes. There are plenty of other ways to commit tax evasion, which can be done by businesses and individuals alike.
Embezzlement
Embezzlement occurs when someone takes money or assets that they are responsible for at their place of employment. This most commonly happens in the corporate world and can be committed by bank tellers, investors, accountants, wealth management specialists, cashiers, and anyone else who has access to money. Embezzlement also occurs when professionals services employees misuse funds of their clients. It can take many forms and comes with varying degrees of penalties.
Insurance and Mortgage Fraud
Insurance and mortgage fraud are two more common forms of white collar crime. For the most part, insurance fraud is committed by individuals who want to receive insurance payments from their carrier without actually suffering some sort of loss or injury. These can take place involving workers’ compensation, automotive, homeowner’s, renter’s and jewelry policies.
Mortgage fraud can be committed by both individuals and lenders. When lenders commit mortgage fraud they do so by making offers to borrowers of massive payouts from institutions such as the Internal Revenue Service (IRS).
Money Laundering
You could also be charged with a white collar crime if you have been found to launder money. Money laundering occurs when someone takes dirty money, which is dirty because it was acquired illegally, and launders it until it can be mixed with clean money. The money is typically taken from accounts and other places and deposited into the suspect’s accounts. The money is then laundered by mixing it in with clean money so it is hidden in plain sight.
Ponzi Schemes
Ponzi schemes have made the news the most over the past couple of years due to the massive amount of money that was defrauded from innocent people. A Ponzi scheme offers promises to investors of massive payouts on products or services that do not actually exist. The payouts are either incredibly small or do not happen at all and the creator of the scheme keeps the money.
Are you facing a charge stemming from a white collar crime in Chicago? Contact the office of David Freidberg at 312-560-7100 to schedule a consultation today.
(image courtesy of William Stitt)