White Collar Crimes We Need to Watch Out For

Corporate dark side of the city with businessman in coat Photo by kentoh - yayimages.com

The legal definition describes white collar crime as a “crime that is committed by salaried professional workers or persons in business that usually involves a form of financial theft or fraud (as in securities dealing)”. Hundreds and thousands of white-collar crimes are performed every year. In some cases, the double-crossing executer is caught and in others, they go undetected.

Even more scandalous are the situations in which the con artists frame someone else for the crimes they have committed. It’s deceit within deceit. What makes white collar crimes much more dangerous is that the losses are greater than any snatching or mugging incidents. Even more dangerous is the fact that these crimes are committed by well-to-do and respectable-appearing people. They snatch money right under everyone’s noses with none the wiser.

One of the most notorious crimes was the infamous theft of billions of dollars from unsuspecting individuals by Benard Madoff and another white-collar crime that has been hitting the recent news are the crimes committed by Paul Madafort . The number of crimes committed in the white-collar field is huge and vary widely depending upon the person or persons committing the crime, the organization they are from and the item or service they are looking to steal from.

Needless to say, it was the criminal investment acts of the United Arab Emirates that spurred the creation of this website. But not all white-collar crime is based on money (although a large percentage is). Take a look at former Trump attorney Michael Cohen. He on his way to jail not for any fraudulent financial activity, but for perjury.

Perhaps the only redeeming quality of white-collar criminals is that they don’t use violence. They only use the weapon they know best, their Machiavellian minds.


Bribery is another common crime among the white collar workforce. This crime entails accepting gifts, money, and other favors to treat the bribee differently from other individuals. In some cases, the briber may even bend over backward and go against the rules and regulations of their job to help the bribee.

This crime is as common in average earners as it is among the billionaires.

Money Laundering

Money laundering is exactly what its name suggests. In this common white collar crime, the felon performs a series of actions to wash out their dirty money to make it look clean.

Money that is earned through illicit activities such as drug dealing, racketeering or other embezzlement schemes can be traced and lead to the detection of crimes. To show that their hands clean, the money launderers perform underhanded transactions and cycle it through a legal enterprise to hide the original source of the money.

This crime is a typical white-collar crime. The felons of money laundering often own legit enterprises and/or associated with a genuine venture, which provides for them an ideal cover-up.

Ponzi schemes:

Ponzi schemes are one of the most favorite crimes amongst the white collared criminals, and the worst nightmare for ordinary people like you and me. The crime itself is named after the notorious swindler and con artist who was known by many names, the most famous one being Charles Ponzi.

A Ponzi scheme is an illegal investment fraud where the embezzler gathers a pool of investors and gathers their trust enough to convince them to put their money on the line. Promises of high profits and exceptional rewards are made. Once the swindler succeeds in that, they disappear in thin air without leaving any traces behind.

Most of the times, white collared criminals resort to a Ponzi scheme to acquire money from the new investors to pay off the “profits” to the old ones. Sometimes, it is done just to earn quick and easy money that could land them in prison for a very long time.

The losses from the Ponzi scheme could be as small as a few dollars or as large as billions of dollars. One of the most famous scandals in the history of white collar crimes is that of Bernie Madoff’s. The estimated size of his fraud was $64.8 billion. Regardless to say, he got caught and is currently serving his time at the age of 80. His was sentenced to 150 years of imprisonment.


Embezzlement involves illegal theft of money through tampering with documents and entries. Since it is a white collar crime, it is done in secret and often involves cases where trusted employees embezzle their employers. In embezzlement cases, employees are accused of stealing money from their employer by slyly diverting money from their company’s account to their own personal bank accounts.

Except for people in certain positions in their company, not everyone can manage that. Mostly, embezzlement is done by accountants who are managing their company’s accounts or by investment advisors who are able to misuse their client’s money behind their back.

Embezzlement cases on a small level are considered as a misdemeanor. However, when a specified amount of money or property value is exceeded, it becomes a major felony.

Insider Trading

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One of the more typical white collar crimes is insider trading. In this arena, people who are privy to the workings of a corporation exploit that information to their advantage if they see that it will benefit them. (E.G. Finding out that a CEO will be getting a multi-million contract that will surely raise the company's stock prices and then purchasing those stocks prior to the public finding out).

People who are not part of the corporation yet receive tips from the insiders are also charged with insider trading.

Tax Evasion

Individuals and businesses of every country are obliged to pay taxes under their state or federal law taxes. Tax evasion is a white collar crime in which the felons illegally avoid taxes either by tampering with their tax documents or through the illegal transference of properties. There are endless tactics white collared criminal use for the sake of tax evasion.

Tax evasion is one of the most common types of white collar crime and anyone from an average middle-class worker to a billionaire tycoon may commit it. On a lower level, people might simply enter a false amount on their tax forms, whereas on a higher level, a felon might go as far as changing the will of a dead relative to avoid estate taxes by moving the property around. If or when caught, it could lead to some severe criminal charges.

The effects of white collar crimes are substantial and often trigger a butterfly effect. In order to curtail these crimes, countries have introduced numerous regulations on the federal and state level.

If a person is caught in any of the above white collar crimes, the case would be prosecuted in the federal court. Some people become a victim of these crimes and others get caught up in it for being so close to it. In either case, it is advisable to hire a lawyer to protect your rights, and if possible, get back the embezzled money.

Posted On March 19, 2019