It is a common misconception that white collar crimes have no real victims. While these crimes are not violent, it is estimated that they cost victims over $300 billion every year.
Thus, tackling white collar crimes is a priority for law enforcement, and the penalties for convictions of white collar crimes can be serious. What are some common white collar crimes?
Insider trading
The corporate world is notoriously competitive, particularly in finance. Brokers can potentially make millions of dollars on a deal if they receive information early and act on it.
There are laws in place, however to prevent brokers from gaining an unfair advantage. Trading on information that has not yet been made public is referred to as “insider trading.” Insider trading is a criminal offense that carries harsh penalties.
Money laundering
Money laundering is another common type of white collar crime. There are numerous ways that money laundering can occur, but it essentially amounts to trying to convert illicit funds into legitimate currency. For example, a drug dealer may place money taken from the sale of drugs into the cash flow of a legitimate business. If all the money is then passed through the books as legitimate income, this is money laundering.
Embezzlement
Embezzlement differs from many other white collar crimes because the funds used are generally legitimate. The embezzler is also in a legitimate position to manage those funds. The crime comes from how those funds are used. For example, if a store manager funnels money from customers into their own personal account rather than the business account, this may amount to embezzlement.
If you are facing white collar charges, it is essential to seek appropriate legal guidance. This can help you protect your rights and build your defense.