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What crimes are considered white collar crime?

On Behalf of | Mar 3, 2021 | Other Criminal Offenses

White collar crime in Gaston County, NC, refers to a group of non-violent crimes committed for financial gain. The term comes from the people most likely to commit these crimes, which mainly involves those in affluent positions. New technology has enabled offenders to devise new ways to commit fraud, but some older white collar crimes are still prevalent.

Embezzlement

Embezzlement occurs when a person entrusted with assets misuses them for personal gain. This commonly involves an employee taking an advantage of an employer, such as overcharging customers and keeping the rest of the money or stealing charity funds.

In many cases, the offender starts depositing small transactions in their account to lower the risk of getting caught. It may take the employer several years to discover the employee has been deceitful.

Money laundering

Money laundering means the criminal attempts to hide the money or goods that come from illegal activity. The criminal attempts to “launder” the transactions by making them look legal.

The most common method involves dividing huge amounts of cash into smaller deposits in legal financial institutions, so the offender can withdraw “clean” money. While the law requires banks to report large sums of money, cryptocurrency and online banking make detecting money laundering harder.

Ponzi schemes

Ponzi schemes take their name from Charles Ponzi, a con artist from Italy who lived in Boston in the 1920s. He ran a scheme involving postal reply coupons that primarily targeted immigrants who moved to the United States.

Modern Ponzi schemes operate in much the same manner, with or without a physical product. It promises investors high returns with little or no investment, but it relies on new recruits to pay the old investors. These schemes commonly end up failing quickly, because only so many new investors can be recruited.

White collar crimes can be misdemeanors or felonies with penalties of fines, jail or home detention. A person charged with a crime needs a good defense team to help fight charges.