The term “white collar crime” generally refers to various nonviolent, commercial crimes that people commit for financial gain. Individuals usually commit these crimes to receive or avoid losing property, money or services. Most white collar crimes involve sophistication and deception.
But with so many examples of white collar crimes out there, which ones are the most common? Here is a look at some of the most frequent white collar crimes.
1. Money laundering
When someone disguises illegal sources of income as legitimate, he or she is laundering money. This tactic allows criminals to evade taxes and avoid law enforcement while accumulating wealth. Money laundering may also involve funding illegal activities, including health care fraud, drug trafficking and public corruption. Individuals who launder money usually shift funds through a series of international financial transactions.
Criminals may secretly take money from an employer. This is known as embezzling. Some people may accomplish this by stealing physical cash out of a cash register, but most cases involve electronic transfers. An employee may divert company funds from a business account to his or her own personal account. Embezzlement may also involve an investment advisor or accountant mishandling money.
3. Tax evasion
When someone avoids meeting his or her tax obligations, it is tax evasion. Businesses may also commit tax evasion too. Tax evasion may take the form of illegally transferring property or filling out a tax return improperly. Individuals and companies may evade federal or state laws.
4. Securities fraud
One type of securities fraud is known as insider trading, which involves an investor using private company information to make money on financial trades. Another example of securities fraud is when an investment advisor or broker lies about facts regarding investments when offering or selling to investors.
According to Cornell Law School, these are some of the most common white collar offenses. Are you under investigation or facing charges for such an offense? Talk to a lawyer if so.