1. WHITE-COLLAR CRIMES

2. CRIME MENS REA “THE GUILTY MIND” ACTUS REUS “GUILTY ACT”
MISDEMENOR – LESS THAN ONE YEAR
FELONY – ONE YEAR OR MORE

3. In the business setting…
Multiple individuals can be held responsible for committing the same crime.
For example, the manager can be held liable for the acts of his or subordinates, if:
1) Authorized the conduct
2) Knew about the conduct
3) Failed to properly supervise the employee to
prevent the criminal conduct.

4. RECENT CORPORATE SCANDALS
PURCHASE PRO

5. Scandal
A widely publicized incident involving allegations of wrong-doing, disgrace, or moral outrage.
A scandal may be based on reality, or the product of false allegations, or a mixture of both.

6. Whistle-Blower
Some scandals are broken by a whistle-blower revealing wrongdoing within an organization or a group.
Falsely alleged scandals can lead to a witch-hunt against the innocent.
Sometimes an attempt to cover up a scandal ignites a greater scandal when the cover-up fails.

7. Can Cause Bitterness in Organization
Dissent - Must speak out against others in organization
Breach of Loyalty - Perceived as one who violates confidentiality and loyalty
Accusation - Singles out specific individuals as threats to organization or the public

8. Possible Retaliation Fired Blacklisted
Transferred to undesirable locations
Lifestyles, sex lives and mental stability questioned
Physical abuse and murder possible

9. White-Collar Crimes
1939
A crime committed by a person of respectability, trust, and high social status in the course of his occupation.
Business and Financial Crimes.
Involve cheating and fraud.

10. White Collar Crimes The FBI investigates these at the federal level.
Its major programs are focused on:
Corporate fraud
Health care fraud
Mortgage fraud
Securities and commodities fraud
Insurance fraud
Mass marketing fraud
Money laundering
Bankruptcy fraud
Hedge fund fraud

11. Embezzlement
When a person who has been entrusted with money or property appropriates it for his or her own use and benefit.

12. Embezzlement Falsification of records in order to conceal the theft.
Under-report income, and pocket the difference.
Create a false vendor account and supply false bills to the company so that the checks that are cut appear completely legitimate.
Create phantom employees, who are then paid with payroll checks.

13. Money Laundering
The practice of engaging in financial transactions in order to conceal the identity, source and/or destination of money.
Ex: drug money and profits from crimes.

14. Money Laundering

15. Racketeering
The operation of an illegal business for personal profit.

16. Kickback
Occurs when a person who sells an item pays back a portion of the purchase price to the buyer.

17. Tax Evasion
When a person/firm commits fraud in filing or paying taxes.
Taxpayers deliberately misrepresenting or concealing the true state of their affairs to the tax authorities to reduce their tax liability, and includes: dishonest tax reporting (such as underdeclaring income, profits or gains; or overstating deductions, offshore co’s, incorporating).

18. (Cash) Larceny A common law crime involving stealing.
The trespassory taking and asportation of the (tangible) personal property of another with the intent to deprive him or her of it permanently.

19. Bribery
When money, goods, services, information or anything else of value is offered with intent to influence the actions, opinions, or decisions of the taker.
You may be charged with bribery whether you offer the bribe or accept it.

20. Extortion
Occurs when one person illegally obtains property from another by actual or threatened force, fear, or violence, or under cover of official right.
also called blackmail, shakedown, outwresting, and exaction

21. Espionage
The practice of obtaining secrets (spying) from rivals or enemies for military, political, or economic advantage.
Spying involving corporations, known specifically as industrial espionage.

22. “Insider Trading"
When a person uses inside, confidential, or advance information to trade in shares of publicly held corporations.

23. Securities Fraud - Investment Fraud
A practice where investors are deceived and manipulated, resulting in theft.
The elements of the crime are theft of capital from investors and defrauding the accounting companies about your financial reports.
Estimated that civil securities fraud totals approximately $40 billion per year.

24. PONZI SCHEME
A fraudulent investment operation that pays returns to separate investors from their own money or money paid by subsequent investors, rather than from any actual profit earned.
Usually offers returns that other investments cannot guarantee in order to entice new investors.

25. BERNARD “BERNIE” MADOFF (“The largest investment fraud in Wall Street History)
In March 2009, pled guilty to 11 felonies and admitted to defrauding thousands of investors of billions of dollars from the early 1990s onward.
Federal investigators believe the fraud began as early as the 1980s.
The amount missing from client accounts, including fabricated gains, was almost $65 billion.

26. Conspiracy
An agreement of two or more people to commit a crime or to accomplish a legal end through illegal actions.

27. Accounting Fraud
To hide serious financial problems, some businesses have been known to use fraudulent bookkeeping to overstate sales and income, inflate the worth of the company's assets or state a profit when the company is operating at a loss.

28. Counterfeiting:
Occurs when someone copies or imitates an item without having been authorized to do so and passes the copy off for the genuine or original item.
Most often associated with money. Can also be associated with designer clothing, handbags and watches.

29. Bank fraud
A federal crime to engage in an act or pattern of activity where the purpose is to defraud a bank of funds.
Unauthorized use of ATMS
Submitting false information to banks.
Writing bad checks.
Stealing credit cards.

30. Check Kiting
A bank account is opened with “good” funds and a rapport is developed with the bank. Actor then deposits a series of bad checks but prior to their discovery, withdraws funds from the bank.

31. Check Kiting

32. Skimming
Steal credit/debit card numbers by using a special storage device when processing your card.

33. Identity Theft
Occurs when someone uses your personally identifying information, like your name, Social Security number, or credit card number, without your permission, to commit fraud or other crimes.
Rent an apartment, obtain a credit card, or establish a telephone account in your name.

34. Phishing
Thief pretends to be financial institutions or companies and send spam or pop-up messages to get you to reveal your personal information.

35. Pharming
A hacker’s attack aiming to redirect a website's traffic to another, bogus website.

36. Mass-Marketing Fraud
Any type of fraud scheme that uses one or more mass-communication techniques and technologies – such as the Internet, telephones, the mail, and even mass meetings in person -- to present fraudulent solicitations to numbers of prospective victims, to conduct fraudulent transactions with victims, or to transmit the proceeds of the fraud to financial institutions or to others connected with the scheme.

37. Mass-Marketing Fraud
Broadly speaking, mass-marketing fraud schemes fall into two general categories:
(1) schemes that target larger numbers of victims for comparatively small per-victim losses, ranging from dozens to several hundreds of dollars;
(2) schemes that target numbers of victims for large amounts of per-victim losses, ranging from thousands to millions of dollars, depending on the nature of the scheme.

38. Insurance Fraud
To engage in an act or pattern of activity wherein one obtains proceeds from an insurance company through deception.
Making false claims to an insurance company.

39. ANTITRUST LAW
A body of law that prohibits anti-competitive behavior (monopolization) and unfair business practices.
Antitrust laws are intended to encourage competition in the marketplace.

40. Securities and Exchange Commission
(The SEC) is an independent agency of the United States government which holds primary responsibility for enforcing the federal securities laws and regulating the securities industry, the nation's stock and options exchanges, and other electronic securities markets.

41. Sarbanes-Oxley Act
A United States federal law enacted on July 30, 2002, as a reaction to a number of major corporate and accounting scandals.
The legislation set new or enhanced standards for all U.S. public company boards, management and public accounting firms.

42. 4th Amendment Business Rights
Under the Fourth Amendment protections, businesses have the right to be secure from unreasonable searches and seizures without a warrant.
Enforced by the requirement that the government obtain a search warrant before it can search or seize property if the business has a reasonable expectation of privacy.

43. 5th Amendment Business Protection
Provides constitutional protection against self-incrimination and guarantees due-process.
The due-process rights of an individual must be extended to businesses as well.