White-collar crimes are classified as non-violent, financially motivated actions that aren’t legal. The increase in online activity means that these crimes are sometimes committed online instead of in person.
Computer-related white collar crimes can lead to significant harm to the victims. Because of this, prosecutors often take a harsh stance against individuals accused of these crimes. These defendants need to determine what defense strategy options they have so they can build up that strategy to answer the charges.
Understanding the specifics of what some of the more common white collar crime charges entail may help defendants to determine their course of action.
1- Identity Theft
The ease of opening online accounts has led to an increase in identity theft. This occurs when someone uses another person’s information for their own gain. In most cases, this is done to obtain money or credit. Opening bank accounts and credit accounts are usually at the top of the list of things a person is accused of when they commit identity theft.
In some cases, identity theft leads to other white collar crimes. An example of this is if a person uses someone else’s information to obtain a mortgage. At that point the crime becomes a form of mortgage fraud, which has serious legal consequences.
2- Online Scams
Online scams include a host of different actions. These can include everything from phishing attempts to work-from-home scams. Another growing online scam is a fake rental property. The tie that binds most of these points is that they all involve either gathering money or personal information from the targeted individuals.
Some of these white collar crimes may be charged under other crimes. For example, if an online scam involves money being transferred from the alleged victim to the alleged scammer, there’s a chance that wire fraud may be one of the charges that are levied.
3- Securities Fraud
There are various types of securities fraud that can occur via a computer. Some of these include high-yield investment fraud and late-day trading. Broker embezzlement, Ponzi schemes, and pyramid schemes are also possible. Pump and dump schemes are another example of securities fraud that may come with criminal charges.
Securities fraud cases are typically investigated by federal authorities. This can include the Federal Bureau of Investigation, Financial Industry Regulatory Authority, and Securities and Exchange Commission. When alleged criminal activity is found in the investigation, these cases are usually handled in the federal court system.
White-collar crimes are typically charged as felonies, which carry considerable periods of incarceration and fines. These penalties are harsh even on a first offense, but they become more serious for subsequent offenses.
One of the most important things that a person who’s facing these charges can do is to consult with a legal representative who can help them learn their options. This is best done at the start of the case so the defense strategy can be carefully crafted based on the circumstances of the case and the possible defense options.
4. Tax Evasion
Tax evasion involves deliberately avoiding paying taxes owed to the government. This can include underreporting income, inflating deductions, or hiding money in offshore accounts. With the advent of digital banking and online financial transactions, tax evasion schemes have become more sophisticated and harder to detect.
The Internal Revenue Service (IRS) often investigates these cases, and when substantial evidence is found, charges can be brought against the individual or entity involved. Penalties for tax evasion can be severe, including hefty fines and imprisonment.
5. Cybercrime
Cybercrime encompasses a broad range of illegal activities conducted via the internet or other computer networks. This can include hacking, distributing malware, and conducting denial-of-service attacks. These crimes are often financially motivated and can cause significant harm to individuals, businesses, and even governments.
Given the complexity and potential international scope of cybercrimes, investigations are typically conducted by specialized units within law enforcement agencies, such as the FBI’s Cyber Division. Convictions for cybercrime can result in substantial prison sentences and fines.
6. Money Laundering
Money laundering is the process of making illegally-gained proceeds appear legal. This is often done through complex financial transactions designed to hide the origin of the money. With the rise of digital currencies and online banking, money laundering schemes have evolved to include sophisticated methods that utilize technology.
Financial institutions are required to report suspicious activities to authorities, and investigations can involve multiple agencies, including the Financial Crimes Enforcement Network (FinCEN). Penalties for money laundering are severe and can include long prison sentences and significant fines.
White-collar crimes are typically charged as felonies. This comes with considerable periods of incarceration and fines. These penalties are harsh even on a first offense, but they become more serious for subsequent offenses.
One of the most important things that a person who’s facing these charges can do is to consult with a legal representative who can help them learn their options. This is best done at the start of the case so the defense strategy can be carefully crafted based on the circumstances of the case and the possible defense options.