What Are White Collar Crimes?
The term “white collar crime” was first used by sociologist Edwin Sutherland in 1939. He said that this type of crime was “committed by a person of respectability and high social status in the course of his occupation.” This was to distinguish white collar crimes from “blue collar crimes” that often involves physical force and violence. White collar crimes include:
· Identity theft
· Bank fraud
· Embezzlement
· Insurance fraud
· Counterfeiting
· Money laundering
· Computer crimes
· Healthcare fraud
· Government fraud
· Tax fraud
· Mortgage fraud
· Investment frauds
· Many others
White collar crimes are often committed because there is access to a steady stream of money, such as in banks, insurance offices and securities and trading environments. The FBI reports that white collar crimes are more sophisticated than ever before and they are increasing in number every year. Recent white collar crimes include the Enron case and the Bernard Madoff Ponzi scheme. In both of these cases, investors lost billions of dollars. It is estimated that white collar crime costs the government some $300 billion yearly.
The Difference Between White Collar Crimes and Blue Collar Crimes:
White collar crimes tend to be committed in office and corporate environments and usually do not include physical violence. Blue collar crimes, on the other hand, are crimes that are physical or violent in nature, and include:
· Robbery
· Burglary
· Breaking and entering
· Auto theft
· Assault
· Murder
· Rape
· Crimes against persons
· Crimes against property
· Prostitution
· Gambling
· Drug trafficking
Blue collar crimes are crimes that are committed “on the street,” as opposed to white collar crimes, which are often committed within the confines of corporate and government offices. Blue collar crimes are crimes that often involve weapons, force, violence, gangs and brutality. A white collar crime will tend to be committed using a computer, a phone and/or a pen.
Corporate and Individual White Collar Crimes:
White collar crimes may be committed by individuals and corporations. White collar crimes are often committed by altering accounting records and in many instances this makes them extremely difficult to prosecute. Other white collar crimes include:
· Antitrust violations
· Environmental law crimes
· Telemarketing fraud
· Insider trading
· Mail fraud
· Wire fraud
· Public corruption
· Price fixing
· Social security fraud
· Trade secret theft and sales
· Hedge fund fraud
· Frauds targeting senior citizens
Penalties for White Collar Crimes:
White collar crimes may result in extremely severe penalties. For example, Bernard Madoff was sentenced to 150 years in prison for his massive investment fraud. Penalties may include:
· Jail or prison, often up to 30 years
· Probation
· House arrest
· Fines – often in the millions of dollars
· Community service
· Asset forfeiture
· Restitution
· Paying for the cost of prosecuting the crime
White collar crimes are aggressively prosecuted in federal and state courts. The FBI investigates federal white collar crimes and the U.S. Department of Justice prosecutes them. State courts prosecute state white collar crimes. In some cases, both federal and state prosecution may be called for. If an individual is under investigation or has been arrested for a white collar crime, aggressive and experienced legal representation is of the utmost importance
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