White Collar Crime - Investigations, Prevention and Defense

Overview

White-collar crime is a term that is used to cover a wide range of offences. There are similarities between some of these offences and they may be investigated by the same authorities. But they are far from identical. This article explains what white-collar crime is and details some of the main offences.

What is White-Collar Crime?

White-collar crime is the range of crimes that are committed by professionals who are either in business or government. It is a term that refers to crimes that involve deceit, concealment or some abuse of trust rather than the use or threat of physical violence.

The aim of those committing white-collar crime is to either gain or avoid losing assets such as money, property or services or to obtain some sort of personal advantage.

Some interpret the definition of white-collar crime as only applying to offences committed by an individual. But others, including the FBI, also consider white-collar crime to cover large-scale fraud carried out by a number of people in a company or government organisation.

White-collar crime that is part of an organised effort to boost a company is known as corporate crime. The FBI sees tackling corporate crime as one of its most important issues, due to the losses it can cause investors and the damage it can do to the US economy.

Types of White-Collar Crime

Various types of white-collar crime have developed over the decades, as new opportunities have presented themselves.

At present, developments in the digital business world have made cryptocurrency a popular means of carrying out white-collar fraud, whereas in previous years it was more likely to have been mail fraud or wire fraud. Similarly, the way the world’s financial markets are now closer to each other than in previous years has produced more opportunities for people to invest worldwide.

Here are some of the types of white-collar crimes that have been around for many years.

Fraud: This covers situations where a person deceives another in order to make a financial gain. This could involve, to mention just two examples, persuading someone to invest in a bogus financial scheme or selling an item at a vastly inflated price by making false claims about its value.

Embezzlement: This is where money is taken from a person or organisation by someone who has a duty to act on their behalf. An example would be a financial adviser entrusted with a client’s funds who then spend them on himself or some other purpose they were not intended for.

Bribery: Bribery is the offering, giving, receiving or requesting of money or any other item of value to influence the actions of an official or another person who has a public or legal duty.

Tax evasion: An individual or company can be guilty of tax evasion if they conceal their income or other information about their assets from the tax authorities so that they have to pay less tax. This is not to be confused with tax avoidance, which is using legal ways of reducing the amount that a person or company has to pay tax on.

Money laundering: If someone has earned money or gained other assets through criminal activity, they will not want the authorities to recognise this. Money laundering is the series of business transactions they create in order to disguise the fact that the wealth was gained through crime.

Investigation of White-Collar Crime

White-collar crime cases can be lengthy, complex and involve a number of countries. Those suspected of such crime can be investigated by law enforcement agencies. They may also be the subject of legal action brought by people who say they have suffered losses as a result of such crimes.

Responding to either of these situations requires legal representation from those with extensive experience and expertise in this area.

Representation in white-collar crime cases must be conducted by those who have in-depth knowledge of the law, how an investigation or legal action may develop and the possible financial and reputational effects.

Legal advice can also be of immense proactive value regarding white-collar crime. Individuals, companies and organisations can be advised on introducing preventative measures to make it impossible to commit such offences and on compliance programmes to make sure they are meeting all their legal obligations.

Prevention and Reporting of White-Collar Crime

While any white-collar crime that has been committed can be investigated, this will only happen if it is known.

There may be situations where the company has noticed a white-collar crime committed under its roof but does not notify the authorities. A company may decide not to report what has happened for a variety of reasons.

But such a course of action can be dangerous. Not reporting a crime can create legal problems for the company if and when the authorities do eventually become aware of the wrongdoing.

The value of preventative measures can be huge, even if it may not always be obvious. Taking action that prevents a company becoming embroiled in huge, cross-border bribery and corruption probes or finding its employees under investigation for large-scale securities fraud can save it huge amounts of money and preserve its reputation.

About Rashid Imran Attorney

Rashid Imran Attorney is a top white-collar crime law firm operating internationally from their London based offices. The firm has a reputation that is built on defending clients around the world.

They are adept at advising clients and managing cases in one or a number of countries in matters of criminal defence, international investigations and proactive preventative legal advice.

Our investigations expertise includes managing multi-agency and multi-jurisdictional investigations, Serious Fraud Office (SFO) investigations, Financial Conduct Authority (FCA) investigations, bribery and corruption investigations, deferred prosecution agreements, Multilateral Development Bank investigations, market abuse, Cum-Ex investigations, HMRC tax and VAT investigations, competition and cartels, anti-money laundering, sanctions, cybercrime, SPACs, cryptoassets and cryptocurrencies, and extradition and INTERPOL Red Notices.

Our expertise also covers civil fraud, private prosecutions, freezing orders, asset tracing and recovery, civil recovery, unexplained wealth orders, commercial litigation, confiscation and restraint orders.