The Most Common Types of White-Collar Crimes and How They Are Prosecuted
White-collar crimes are crimes that don’t involve violence and are done to make money through deception or breaking someone’s trust. They commonly happen in business, finance, or government settings and can lead to serious federal charges.
San Diego, California, is a major city on the coast near the U.S.-Mexico border. It has a strong biotech industry, military bases, and a busy international trading center. When people are in trouble with white-collar crime accusations, they need to hire an experienced white-collar crime attorney in San Diego when they file charges.
White-collar crimes are usually prosecuted under federal law. A lot of fraud and financial crime investigations are led by the FBI. We’ll talk about the most common types of white-collar crimes and how they are prosecuted in this article.
What is Fraud, and How is it Prosecuted?
Fraud is the most common white-collar crime that people commit. It involves lying or hiding the truth to gain money or property.
Some common types of fraud are
- Wire fraud
- Mail fraud
- Health care fraud
- Securities fraud
Prosecutors have to prove that the person had the intent to deceive. They show a knowing scheme by using emails, bank data, and witness testimony. If you’re convicted, you could go to jail, pay back money, or pay heavy fines.
How Does Embezzlement Lead to Charges?
When someone steals money that someone else has entrusted to them, they are committing embezzlement. It happens a lot in settings where workers are in charge of the company’s money.
For instance, taking money from a business and putting it in your own account is embezzlement. Prosecutors show that the accused had legal access to the money but used it in an illegal way. The amount taken and the person’s history influence the sentence.
What Makes Insider Trading Illegal?
Using information that isn’t public to make a profit is called insider trading. It often happens in cases involving stock trading.
The Securities and Exchange Commission investigates trades that seem fishy. Prosecutors have to prove that the person knew the information was private. Prison time, fines, and being banned from being a company official are all possible punishments.
How is Money Laundering Charged?
Money laundering makes illegal income look like it came from a legal source. It usually follows crimes like drug trafficking or fraud.
There are three steps in the process:
- Placement of illegal funds
- Layering through complex transfers
- Integration into legal accounts
Federal prosecutors trace transactions across banks and borders. When people are found guilty, it can lead to asset forfeiture and long prison terms.
What About Tax Evasion and Bribery?
Tax evasion is when someone purposely underreports their income or inflates their deductions. The Internal Revenue Service reviews these cases very carefully.
Prosecutors must prove that the person acted with intent and not just simple mistakes. Fines, repayments, and jail time are all possible penalties.
Bribery is when you provide or take something valuable to influence someone’s decisions. Even trying to bribe someone can get you in trouble. Corruption is against the law for both public officials and private citizens.
Key Takeaways
- White-collar crimes don’t involve violence, yet the penalties are often serious.
- The most common white-collar crime that gets people in trouble is fraud.
- Embezzlement is when someone uses money they were given for something else.
- Insider trading is when people use confidential information for their own gain.
- Money laundering hides illegal money through a series of transactions.
- To prove intent, you need to show that you wanted to avoid paying taxes or giving bribes.
- The FBI and other federal agencies often lead investigations.
