People from all social-economic strata can step outside of the law. When high-earning employees are accused of white collar crimes, sometimes the case is not clear-cut. Alleged white collar crimes are often complex and require a deep understanding of accounting, finance and economics.
Sometimes the complexities of white collar crimes can lead to misunderstandings and false accusations of foul play. It is helpful to know the areas that one could get into a compromising position and proactively avoid problems before they occur.
6 types of white collar crimes you should recognize
There are numerous ways for white collar crimes to be committed, and the laws are constantly evolving. Here are some of the most common charges people usually face:
- Money laundering: The laundry makes clothes clean. Likewise, money laundering is the act of taking illegally gained money and filtering it through legitimate businesses and investments in an effort to “clean” it.
- Embezzlement: This is the act of stealing money or assets from a person or organization to which you owe a duty, such as an employer or client. Embezzlement can happen in many ways, from financial advisors misusing their client’s money, to an employee stealing from their boss.
- Insurance fraud: Defrauding insurance companies by filing false or misleading claims can be a white collar crime.
- Securities fraud: Activities such as “insider trading,” “pump-and-dump” investments, false statements meant to drive up a stock price and similar actions can all be considered securities fraud.
- Tax evasion: Avoiding paying taxes by falsely reporting income is tax evasion.
- Business scams: The famous Ponzi scheme is an example of a business scam that could result in white collar charges.
When accused of a white collar crime, there are often many options available that do not include prison time. The smartest thing you can do is learn more about your legal options so that you can better participate in your own defense moving forward.