White Collar Crimes

1. White Collar Crimes By: Emma lucciola

2. White Collar Crime Definition • Definition: refers to financially motivated nonviolent crime committed by business and government professionals. Within criminology, it was first defined by sociologist Edwin Sutherland in 1939 as "a crime committed by a person of respectability and high social status in the course of his occupation".

3. Bank Fraud • Definition:  use of potentially illegal means to obtain money, assets, or other property owned or held by a financial institution, or to obtain money from depositors by fraudulently posing as a bank or other financial institution. • Famous example of crime in action: Jerome Kerviel Jerome Kerviel is a French trader who was convicted in 2008 for causing trading loss, breach of trust, forgery and unauthorized use of bank SocieteGenerale's computers, resulting in losses valued at 4.9 billion pounds. • Explain why someone use this crime: To gain money that isn’t theirs.

4. Blackmail • Definition: the action, treated as a criminal offense, of demanding money from a person in return for not revealing compromising or injurious information about that person. • Famous example of crime in action: Tom Katie Blackmail Tom Cruise and Katie Holmes had their wedding photos stolen and were asked to give $1.3 million for their return. • Explain why someone use this crime: To threaten someone into giving them what they want.

5. Bribery • Definition: occurs when a person offers, gives, receives, or accepts something of value in exchange for influence over, or alteration of, another person’s behavior. The bribe itself is the gift of money or other assets, given on the basis that the recipient will act in a certain way that is contrary to what he would do in ordinary circumstances. • Famous example of crime in action: In 2013, Ralph Lauren Corp. discovered that one of its South American subsidiaries had paid bribes to certain Argentinian officials to the tune of about $568,000, to ensure prohibited goods were cleared for import, to be allowed to important certain. • Explain why someone use this crime: To convince someone to participate in something they wouldn’t normally.

6. Cellular Phone Fraud • Definition:  the unauthorized use, tampering or manipulation of a cellular phone or service. • Famous example of crime in action: Federal prosecutors have charged 20 people allegedly involved in a fraud scheme involving cell phones. Charges that the group obtained information on legitimate cell service subscribers. They then used that information to add additional users to the legitimate accounts, entitling them to buy additional phones at a discount. • Explain why someone use this crime: To get another person’s identity, personal information, money, etc.

7. Computer fraud • Definition: Any act using computers, the Internet, Internet devices, and Internet services to defraud people, companies, or government agencies of money, revenue, or Internet access.  • Famous example of crime in action: A recent case in which a University of Oklahoma student is accused of improperly changing his grades is the first the university has seen in more than 15 years, university officials said. OU student Roja Osman Hamad, 24, faces five counts of computer fraud. • Explain why someone use this crime: To obtain illegal access to document and accounts, to defraud people of money, revenue, or Internet access.

8. Counterfeiting • Definition: fraudulently manufacturing and distributing an item of lesser value than the genuine product, usually for the purpose of monetary gain. • Famous example of crime in action: Alves Dos Reis thought big. Instead of counterfeiting bills, he forged a contract from the Banco de Portugal so that he could acquire banknotes from official printers – meaning his counterfeit notes were real, though still not legitimate. By 1925 he had pumped banknotes worth £1,007,963 ($1.7 million) into the economy, which was equivalent to just under 1% of Portugal’s entire GDP at the time. • Explain why someone use this crime: To get money that isn’t theirs.

9. Credit Card Fraud • Definition:Credit card fraud is a wide-ranging term for theft and fraud committed using or involving a payment card, such as a credit card or debit card, as a fraudulent source of funds in a transaction. • Famous example of crime in action: Two New Jersey women were among eight arrested in Virginia for trying to use stolen credit cards, authorities said. • Explain why someone use this crime: To steal another person’s personal information and money.

10. Currency Schemes • Definition: A type of unregulated, digital money, which is issued and usually controlled by its developers, and used and accepted among the members of a specific virtual community. • Famous example of crime in action: On Wednesday, four large global banks — Citigroup, JP Morgan Chase, Barclays and Royal Bank of Scotland — pleaded guilty to a series of federal crimes over a scheme to manipulate the value of the world’s currencies.  • Explain why someone use this crime: To make profit when exchanging different types of currencies. The most common are virtual schemes.

11. Embezzlement • Definition: The fraudulent conversion of another’s property by a person who is in a position of trust, such as an agent or employee. • Famous example of crime in action: The 53-year-old Lexington, Kentucky, accountant now sits in a southwest Ohio county jail. He has pleaded not guilty and is scheduled for trial next month in U.S. District Court in Cincinnati on charges that he embezzled nearly $9 million from his Ohio-based employer, an indictment handed up after he had already disappeared, apparently into the 2,200-mile trail stretching from Georgia to Maine. • Explain why someone use this crime: To gain money that isn’t theirs through friendship, business, and trust.

12. Environmental Schemes • Definition: a mechanism by which landowners and other individuals and bodies responsible for land management can be incentivized to manage their environment. • Famous example of crime in action: Bio-diesel Fuel Company Owner Sentenced to 188 Months in Federal Prison for Crimes Connected to Illegal Fuels Scheme. Jeffrey David Gunselman was sentenced to 188 months in federal prison, fined $175,000 and ordered to pay more than $54.9 million in restitution, following his guilty plea to an indictment charging 51 counts of wire fraud, 24 counts of money laundering and four counts of making false statements in violation of the Clean Air Act. • Explain why someone use this crime: To gain natural resources, land, money through the environment, etc.

13. Extortion • Definition: The practice of obtaining something, especially money, through force or threats. • Famous example of crime in action: Charles Lindbergh, Jr., 20-month old son of the famous aviator, was taken from his nursery in Hopewell, New Jersey. A search of the mansion turned up a $50,000 ransom note left on the nursery windowsill. Five days later, Colonel Lindbergh received a second ransom note increasing the demand for the safe return of the baby to $70,000. A third note arrived at the family’s attorney’s office demanding that the Lindberghs’ replies be published in the local newspaper, rather than communicated through a third party. After a total of 13 notes, an increase in ransom to $100,000, then a decrease and payoff of $50,000 to a man named “John,” the child was not produced. A few weeks later, on May 12, 1932, little Charles’ body was found partially buried near a highway 45 miles away from the Lindbergh home. The coroner determined that the baby had been dead about two months, which meant that through all of the desperate negotiations.Two years later, police discovered the identity of the man who murdered the Lindbergh baby. Bruno Richard Hauptmann was arrested on September 18, 1934, and indicted on charges of extortion and murder. Hauptmann was sentenced to death. • Explain why someone use this crime: To gain objects money through threats.

14. Forgery • Definition: criminal act that takes place when a person falsifies something with the intent to deceive another person or entity. • Famous example of crime in action: In the 1960s, David Stein made a living traveling from city to city, selling paintings that he claimed were done by European masters. Since the artists’ signatures were in place, many people fell for the scam. In 1967, one of these artists, Marc Chagall, saw three paintings in a New York City gallery containing his name. He knew these were not his works and he contacted the police. • Explain why someone use this crime: To gain money, fame, credit, etc. for something that isn’t theirs.

15. Health Care Fraud • Definition: an intentional deception or misrepresentation that the individual or entity makes knowing that the misrepresentation could result in some unauthorized benefit to the individual, or the entity or to some other party. • Famous example of crime in action: The owner of an Illinois home healthcare company is facing conspiracy and fraud charges after being indicted in an alleged kickback scheme that defrauded Medicare for at least $450,000. Jacqueline Tuanqui, 53, the owner of Hexagram Home Health Care LLC, allegedly paid kickbacks to an outside marketer in exchange for elderly patient referrals for unnecessary treatment funded by Medicare, the FBI said in a statement. • Explain why someone use this crime: To gain healthcare benefits and money.

16. Insider Trading • Definition: The trading of a public company's stock or other securities (such as bonds or stock options) by individuals with access to nonpublic information about the company. • Famous example of crime in action: Federal investigators are examining some well-timed trades made by golf champ Phil Mickelson and golf course owner and Las Vegas gambler William T. Walters. Authorities say the two men made big, profitable bets on Clorox around the time activist investor Carl Icahn launched hostile takeover bids for the company. No charges have been filed. • Explain why someone use this crime: To gain stocks and bondsthat contain nonpublic information about the company

17. Investment Schemes • Definition:Involves collecting money from different investors and then combining all the money collected to fund the investment. A collective investment scheme may also be called a mutual fund. • Famous example of crime in action: Matthews operated a company called First Capital Group (FCG), located in Virginia Beach. He had a license to sell insurance, not to give investment advice or handle securities—but that didn’t stop him from doing so. Starting in 2010 and continuing until early 2013, Matthews solicited members of the military and their families to make investments with FCG. • Explain why someone use this crime: To collect mass amounts of money from individuals.

18. Larceny/Theft • Definition: theft of personal property. • Famous example of crime in action: Prosecutors said that from May to October of last year, when the woman, Capt. Terra Melson, was on active duty in Iraq, Mr. Cupid assumed her identity and stole more than $1,400 from her bank account.Prosecutors say Mr. Cupid withdrew money electronically from the victim’s bank account in White Plains and transferred it to an account in his own name. Malik Cupid of Manhattan had been charged with four felony counts, including grand larceny and identity theft. • Explain why someone use this crime: To steal someone’s property and gain something freely and illegally.

19. Money Laundering • Definition: The concealment of the origins of illegally obtained money, typically by means of transfers involving foreign banks or legitimate businesses. • Famous example of crime in action: In 2012, HSBC Holdings, a London-based company, paid nearly $2 billion in fines after it was discovered that the financial institution laundered money for drug traffickers, terrorists, and other organized crime groups throughout Iran. The laundering went on for many years before the activity was detected. • Explain why someone use this crime: To illegally steal money from banks and businesses in massive amounts.

20. Racketeering • Definition: The RICO Act focuses specifically on racketeering, and it allows the leaders of a syndicate to be tried for the crimes which they ordered others to do or assisted them in doing, closing a perceived loophole that allowed a person who instructed someone else to, for example, murder, to be exempt from the trial because he did not actually commit the crime personally. • Famous Example of crime in action: A Cleveland grand jury cleared two bishops of racketeering charges, finding that their mishandling of sex abuse claims did not amount to criminal racketeering. Certain lawyers and abuse advocates have openly wondered why a similar suit was not filed against archbishop Bernard Law prior to his getting reassigned to Vatican City. • Explain why someone use this crime: To commit a crime without actually hands on doing it, instead they are the individual giving orders.

21. Securities Fraud • Definition: Also known as stock fraudand investment fraud, is a deceptive practice in the stock or commodities markets that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of securities laws. • Famous example of crime in action: Prosecutors said Shavers, who founded and operated Bitcoin Savings and Trust, once possessed 7 percent of all bitcoins in public circulation as he carried out the ruse in 2011 and 2012. The bitcoins amounted to $807,380 based on the average price of bitcoins during the scheme. Assistant U.S. Attorney Michael Ferrara said Shavers invested only some of the bitcoins he obtained. • Explain why someone use this crime:

22. Tax Evasion • Definition: The illegal nonpayment or underpayment of tax. • Famous example of crime in action:  Frio pleaded guilty on Jan. 26, 2015, to conspiracy to commit tax evasion, four counts of filing false tax returns, loan fraud and aggravated structuring of financial transactions. According to court documents, Frio was an accountant and income tax preparer who provided services to the Nifty Fifty’s organization dating back to 1986.  • Explain why someone use this crime: To avoid paying money to the government.

23. Telemarketing Fraud • Definition: Someone calls the victim, makes a false statement, and the misrepresentation causes the victim to give money to the caller. This definition can cover a large variety of scams. someone calls the victim, makes a false statement, and the misrepresentation causes the victim to give money to the caller. This definition can cover a large variety of scams. • Famous example of crime in action: The first case is contained in a 29-count indictment relating to two companies—Mutual Entertainment LLC and Film Shoot LLC. Four defendants related to this scheme are charged with mail fraud, wire fraud, attempted wire fraud, and making false statements. • Explain why someone use this crime: To gain money.

24. Welfare Fraud • Definition: he illegal use of state welfare systems by knowingly withholding information or giving false or inaccurate information in order to obtain funds or obtain more funds than what the recipient is eligible for. • Famous example of crime in action: Remember the “welfare queen” whom Ronald Reagan described during his first presidential campaign as driving around in a Cadillac, living large? That particular woman was convicted of welfare fraud, but the symbol of the “welfare queen” led to a major overhaul of the welfare system in the U.S. that greatly reduced the benefits system.  • Explain why someone use this crime: To gain illegal funds.