Within criminology, White-collar crime is a financially motivated crime committed with the intent to achieve monetary gain. White-collar crimes are often committed by an individual of respectable social status. As we have evolved as a society, the boundaries defining between corporate crime and white collar crime have blurred. Today we have corporate fraud which often needs new government regulations to monitor the originally cause, and computer crimes such as identity theft being white collar crimes.
The term first came to us from sociologist Edwin Sutherland in 1939. Originally the definition was “a crime committed by a person of respectability and high social status in the course of his occupation.” Times have changed a bit with advanced technology and information age with computers. Currently the FBI defines these type of crimes as lying, cheating, and stealing covering the range of frauds committed.
Types of white-collar crime can include:
- Fraud – Fraud involves misrepresentation of the facts to solicit people to make a bad investment choice.
- Bribery – Bribery is where an individual provides a gift to a powerful person in exchange for a favorable decision or use of power.
- Insider Trading – Insider trading is the purchasing or selling of a company’s stock while in possession of material non-public information. So for example, if an employee shares some important insider company information with his brother, and his brother trades the company’s stock, both could be accused and indicted.
- Embezzlement – Embezzlement is a type of theft where an account discretely hides some of the funds for themselves.
- Internet Fraud – Internet fraud is becoming more and more common today. This fraud occurs when someone attempts to obtain sensitive personal information regarding your bank accounts, passwords, or other private information. Common techniques of internet fraud include phishing emails.
- Money Laundering – The process of embezzlement through an outwardly legitimate business enterprise.
The Federal Bureau of Investigation (FBI) has adopted a narrow approach. The FBI further defines white-collar crime as “illegal acts which are characterized by deceit, concealment, or violation of trust and which are not dependent upon the application or threat of violence.” According to the FBI, white-collar crime annually costs the United States about $300 billion. The Punishment for these types of crimes can range from incarceration, fines, community services, probation or other sentences to a combination of punishments.
Depending upon the charges, white collar crimes can include a range of state and federal indictments. An experienced criminal defense attorney can help to advice you on criminal liability and potential defenses which may be available.