New Yorkers know many instances of corporate fraud. Headlines are constantly filled with companies that have been caught stealing, manipulating data, or otherwise obscuring or falsifying information in order to reap an illegal profit. Referred to as white-collar crime, this type of criminal activity seems to never go away. There may be questions as to who can be accused of corporate fraud and what exactly it entails.
Who can be accused or convicted of corporate fraud?
While you often see cases of entire departments located within companies perpetrating financial fraud, corporate fraud doesn’t necessarily have to be an entire group of people. Corporate fraud is defined as fraud committed by an individual or a company. It’s not the number of people who do it that makes it corporate fraud but the crime itself. Corporate fraud falls under the umbrella of white collar crimes.
What are some examples of corporate fraud?
Corporate fraud is usually done by taking advantage of information known to the company and illegally using it to obtain illicit gains. Most often, the fraud is hidden behind the day-to-day activities of the people involved with the fraud. One common type of fraud is to misrepresent how much a company is actually worth. A person or persons may falsify financial statements, hyping up a company’s worth and hiding the company’s true value. This is often done when the company is trying to get funding or when the company is trying to be sold.
Another type of fraud is where a person or persons misrepresents what the company can actually do. They may make a promise to deliver a product or activity that they cannot actually deliver.
Where can someone who’s been connected to corporate fraud go for help?
Someone who’s been connected to corporate fraud may benefit by working with attorneys who have experience with this type of white-collar crime. They may be able to help with the prosecution of or defense of individuals or companies connected to the crime.