White Collar Crimes Definition

White Collar Crimes Meaning

White collar crime refers to those offenses that are designed to produce financial gain using some form of deception. White collar crime often is a criminal act that arises from opportunities created by a person’s social position, especially their occupation. 
White Collar Crimes, Meaning,definition, examples, types

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. White-collar crime is significant sociologically because of the perception that white-collar criminals tend to be middle- and upper-middle-class and because of a class bias in the criminal justice system, their crimes are generally viewed as less serious and less deserving of punishment.

White Collar Crime Types And Examples

Examples of white-collar crime include expense account padding, embezzlement, tax fraud, false advertising, and the use of insider trading in stock market trading.

Bribery: Bribery is where an individual provides a gift to a powerful person in exchange for a favorable decision or use of power.

Fraud: Making someone believe in wrong facts by misrepresenting the facts and making them invest money based on this belief amounts to fraud.

Internet Fraud: This type of fraud has become very common over the past few years. Internet Fraud deals with any illegal activity that is carried out online. This includes obtaining of passwords and bank information illegally, hassling people online and even phishing emails sent to people.

Embezzlement of Money: This occurs when a party to a transaction keeps a part of the money for themselves illegally.

Insider trading: Insider trading deals with trading of stocks and shares. If a person buys or sells their shares based on information that is not open to the public, it amounts to Insider trading. For example, if you work in a company and give confidential information to your sister about the shares of the company and she purchases them, both of you can be held for Insider trading.

Laundering of Money: Money laundering is the process whereby the proceeds of crime are transformed into ostensibly legitimate money or other assets.

Ponzi Scheme: The largest and most infamous example of white collar crime ever discovered took the form of a giant Ponzi scheme. Named after a swindler who operated nearly a century ago, Ponzi schemes involve the solicitation and misappropriation of investment money. Early clients are not paid from profits, but rather from investment funds collected from later clients. In this particular case, New York money manager Bernard Madoff used such a scheme to rob clients of an estimated $65 billion. He pleaded guilty in 2009 and was sentenced to 150 years in prison. 

The punishment for a white collar crimes can range from a fine to community service or in some cases, a prison term.

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