White-Collar Crime

1. White-Collar Crime 

White-Collar Crime

2.

Definition of White-Collar
Crime
Crimes that are committed using deceptive practices for
financial gains.
The actual term “white - collar crime” was coined by Edwin
Sutherland, Professor of Sociology, 29th President American
Sociological Society.
Sutherland described such crimes as “a crime committed by a
person of respectability and high social status in the course of
his occupation.”

3.

Common Types of White-Collar Crime
The term white collar crime covers a wide array of crimes, but they all involve
crimes committed through deceit for the purpose of gaining money or other
assets.
White-collar crimes can often be difficult to prosecute, as the perpetrators
take sophisticated steps to ensure their illegal activities are difficult to
detect.
The most common types of white-collar
crime:
Fraud
Insider Trading
Other Types of White Collar Crime:
Bribery
Tax evasion
Forgery
Ponzi schemes
Embezzlement Pyramid schemes
Bank fraud
Racketeering
Healthcare Fraud etc.

4.

Fraud
Fraud is committed by misrepresenting facts in
order to gain something in return. The crime of
fraud requires four elements:
The perpetrator made a statement of fact that he
knew to be false
The perpetrator intentionally made the false
statement
The victim believed the statement to be true, relied
Example of Fraud
on the statement, and lost something of value, based
Joseph responded to an ad about an apartment for
on his belief
rent. He met with the supposed landlord, toured the
apartment, and agreed to rent the apartment by
signing a lease. Joseph paid the security deposit
and first month’s rent up front. The next week,
Joseph went to the apartment to pick up the key,
and learned that someone else actually occupied
the residence.
After doing some investigation, Joseph learned that
the apartment was not for rent at all, but that the
man he met with and gave the money to was not
the property owner. In this example of white collar

5.

Insider Trading
Insider trading is often considered a type of fraud.
Insider trading is against the law if a securities transaction, which
is the sale or purchase of stocks, is engaged in by a person, or
small group of people, inside the company, who have special
knowledge not available
to others.
Example
of Insider Trading
Jeff works for a private company that is working
on a device that can detect certain serious heart
problems. One day, while at work, Jeff receives
an e-mail that was intended for his boss. The email stated that the device would be released on
a certain day, which had not been announced to
the public. Jeff immediately calls family and
friends, telling them to buy company stock right
away.
By time the product is released, which
immediately raises stock values, the company’s
stocks have already been bought out. In this
example of white collar crime, Jeff used “insider
information” to give his friends and family an

6.

Bribery
Bribery is committed when a person uses something of value to tempt or
influence someone to act in a specific way, to make certain decisions, or to
express certain opinions. This is most commonly seen in one person
offering to pay money to another person, who is in a position of authority,
for the purpose of persuading him to do something, or to refrain from doing
something. Both offering bribes, and accepting bribes, are considered
illegal.
Example of Bribery
DrillTech company is in the process of engineering a horizontal drilling project for
a company installing a pipeline that runs through North City. The City
Engineering office is dragging its feet on approving the drilling project, bringing
up question after question about the project. Mr. Smith, DrillTech’s Vice
President of hole-drilling, invites Sam, the City Engineer to lunch, during which
he offers to “donate” $100,000 to his children’s education fund, if Sam will just
finish the approval process, allowing DrillTech to get on with the project.
This is considered bribery, as its purpose is to induce a
city official to take an action that will benefit the company’s
business and profit. In this example of white collar crime,
DrillTech has committed an illegal act in attempting to
bribe the city official. If Sam accepts the bribe and
greenlights the drilling project, he has also committed an
illegal act.

7.

Forgery
The altering, making, possession, or use of a falsified document, such as a
check, contract, or other document, with the intent to defraud or injure the
recipient of the document. This includes such crimes as passing forged
checks, and creating, possession, or selling falsified art.
Money laundering
Money laundering is a term used to describe a scheme in
which criminals try to disguise the identity, original
ownership, and destination of money that they have
obtained through criminal conduct. The laundering is
done with the intention of making it seem that the
proceeds have come from a legitimate source. A simpler
definition of money laundering would be a series of
financial transactions that are intended to transform illgotten gains into legitimate money or other assets.

8.

Embezzlement
Embezzlement is a crime that takes place when a person purposely withholds or uses
assets and monies for a purpose other than for what it is intended. Also referred to as
“financial fraud” or “larceny,” embezzlement is typically committed by an employee who
is in charge of an agency or company’s finances, or a person who has responsibilities
pertaining to the assets. Embezzlement is considered a white-collar crime, and can
affect both small and large businesses.
Embezzlement Case
Darryl McCauley was business manager to comedian
Dane Cook from 2004 to 2008. During this four-year
period, McCauley and his wife stole money from
Cook’s personal and business accounts and used the
funds to travel, purchase a home, and invest in stocks.
When Cook hired person manager to take over the
business manager position in 2008, it came to light
that McCauley had embezzled over 12 million dollars.
McCauley was charged in 2010, and the case went to
court. McCauley was convicted and sentenced to five
years in prison, and ordered to pay Cook back in full.

9.

White-Collar Crime Punishment: Harsh or
Andrew M. Weisberg is a criminal defense attorney in Chicago, Illinois. A former prosecutor in
Lenient?
Cook County, Mr. Weisbergis a member of the Capital Litigation Trial Bar, an elite group of
criminal attorneys who are certified by the Illinois Supreme Court to try death penalty cases. He
is also a member of the Federal Trial Bar. Mr. Weisberg is a sole practitioner at the Law Offices
of Andrew M. Weisberg.
The sentences for individuals arrested and convicted of white-collar crimes are
established using a particular set of rules in which points are added or eliminated
depending on the various aspects of the defendant’s behavior and the crimes
committed. In large part, the guidelines are driven by the amount of losses caused
by the fraudulent activity, which can easily increase the punishment to what is
given drug dealers and murderers. Although the sentencing guidelines are simply
a recommendation, in most cases, judges try to maintain punishments within the
recommended
range,
in order tofor
avoid
government
appeals.
The question “Are
punishments
white-collar
criminals
too harsh or too
lenient?” has no simple answer, because there is no appropriate way to
determine the sentence for each defendant, especially for those committing
financial crimes. It is true that the impact of such criminal activity is far
broader than burglaries or property crimes.
White-collar crimes are among the hardest to defend. If you are being
investigated for fraud, money laundering, tax evasion, or some other type of
financial crime, it is crucial to remain silent and get legal counsel from a
white-collar crime attorney.

10.

A barrier to dealing with white - collar crime is the way the criminal legal system
is built. Generally, in order to convict an offender the prosecution is required to
prove that the alleged offender actually committed the act (actus reus) and that
the criminal intent (mens rea) was present and that the evidence on the crime
was beyond a reasonable doubt. This is extremely difficult in financial crimes
where physical evidence may be easily destroyed by offenders.

11.

Conclusion
Like other types of crime, white - collar crime cannot be uprooted or
entirely prevented as criminals are becoming increasingly more
sophisticated and seeking new methods of abusing trust and power. With
the finance arena simultaneously becoming more complicated, the
involvement of new technologies and features, such as digital currency
like bit coin, the danger that society faces from white collar crime in
modern times cannot be ignored.
Legislation alone seems to fall behind in the battle with the black plague
that is white collar crime. There is a need for a multisystemic approach
combining all three branches of government, as well as society, to deal
with the matter effectively. The legislative branch should remain vigilant in
trying to update the legal system so that it can be more effective in
dealing with white collar crimes through new platforms. The judicial
branch needs to understand white collar crime and appropriately
recognize and punish violations of the law. The executive branch needs
to create mechanisms that enable employees to avoid the temptations
stemming from association with finances which create conflicts of
interest. And finally , society must denounce non-ethical behavior which
enables white collar crime.

12.

National White-Collar Crime Center
The National White - Collar Crime Center, also known as NW3C, is a
congressionally funded non-profit corporation which trains state and
local law enforcement agencies to combat emerging economic
and cyber crime problems. The NW3C provides the general public with
information and research on preventing economic and cyber crime.
NW3C provides a nationwide support system for law enforcement and
regulatory agencies tasked with the prevention, investigation and
prosecution of economic and high-tech crime.