White-collar crime is a term used to describe
illegal acts made by employees, corporations and business professionals. These
non-violent crimes will typically involve deceit, secrecy and abuse of power
and are usually motivated by financial
gain or personal advantages.
Coined in 1939 by sociologist Edwin Sutherland, the
name refers to “a crime committed by a person of respectability and high social
status in the course of their occupation.” This can include fraud, insider
trading, embezzlement, money laundering and wage theft amongst others.
Although these crimes may not be violent, that is
not to say they are victimless. In fact, a single scam can bring a company to
its knees, rob investors and bankrupt families. While a direct victim may not
be hurt, these types of crimes can affect many people in different ways.
Various agencies work together to ensure
white-collar crime is policed effectively. The Federal Bureau of Investigations
(FBI) usually rely on organizations like the Securities and Exchange
Commission, the Internal Revenue Service, the U.S. Postal Inspection Service
and the Commodity Futures Trading Commission to identify evidence and track
investigations.
Ponzi scheme
One major example of
white-collar crime is the infamous Ponzi scheme. Charles Ponzi
started out as a poor immigrant in the 1920s, working odd jobs and doing two
stints in jail before creating his multimillion-dollar scam.
Ponzi realized he could make a generous living by
taking on ‘investors’. He would promise lucrative annual returns of 50 to 100
percent which encouraged many to part with their cash. However instead of
investing the funds, Ponzi pocketed the money and only paid ‘returns’ to give
the illusion of growth.
His scheme soon began to unravel when too many
investors requested to withdraw their funds that the fraudster had already
spent.
If you have any suspicions about colleagues or
employees, ICFECI can help. We are experts in computer and cell phone
forensics, while founder Dan James has been a Certified Fraud Examiner
for over 25 years. We have decades of experience dealing with corporate crimes
and fraud, with a track record of success in uncovering schemes and compiling
evidence that will stand up in court.
Resource: https://www.icfeci.com/what-is-white-collar-crime/
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