White collar fraud crimes can carry hefty jail sentences and time incarcerated along with other potential penalties and consequences. Accused individuals facing them should understand what is considered white collar fraud and how to defend themselves against those charges.
Types of white collar fraud crimes
Most types of white collar fraud crimes allege some type of deceit or misstatements used to enrich the accused individual. There are several categories of white collar fraud crimes including:
- Securities fraud: Securities fraud primarily includes insider trading in which the accused individual is accused of using non-public information they obtained because of their position inside a company to make beneficial stock trades. Corporate fraud such as falsifying financial information can also be considered a white collar fraud crime.
- Embezzlement: Embezzlement refers to when an individual, lawfully in possession of money or property, misappropriates the money or property for their own benefit. Employees are most commonly accused of this.
- Ponzi schemes: Ponzi schemes are investment scams that pay older investors in the scam with the money from newer investors. When new investors dry up, the scam falls apart. These types of scams typically promise a large return for little risk.
These are some of the top categories of financial fraud, however, other types such as money laundering, extortion, bankruptcy fraud and healthcare fraud can also end up in criminal allegations and charges. Because those accused of white collar crimes are potentially facing a fraught personal and financial future, it is important for them to be familiar with their criminal defense options and how they can fight the charges against them.