What happens when a business or government entity does not color inside the lines? While some actions may result in a nuisance to shareholders, others may rise to criminal charges.
Crimes committed by business professionals fall under the white-collar umbrella. While these infractions do not involve violence, they still come with stiff penalties and jail time. The type of punishment has a lot to do with the breadth of the crime and the details. Gain some more insight into what white-collar crime entails.
The basics behind white-collar crimes
A crime that occurs for financial gain is a white-collar offense. Businesses and government entities that implore deception to either take money or protect their own may face a range of charges. White-collar crimes involve fraud, and the individual or company perpetuating the scheme does so with little regard to fallout.
Discovery of illegal activities
Business crimes may go unnoticed for long periods. Those who commit them may not see the harm in taking from others, especially if the amount of money is minuscule. However, the larger the scheme, the bigger the risk a business takes by continuing the illegal practices. Ponzi schemes, for instance, may go years before the authorities catch on to them.
Common examples of offenses
In some situations, a person may commit fraud without understanding the ramifications. For instance, an employee may act on the request of a superior. If the act is fraudulent, anyone associated with it may come under suspicion and face charges, even someone following orders. Some of the most common examples of these crimes include:
- Money laundering
- Bank fraud
- Mortgage fraud
- Mass marketing fraud
Facing white-collar criminal charges may feel daunting. Having a basic understanding of the type of crimes rolled in may ease the stress.