Who is Affected by White-Collar Crimes?

White-collar crimes are serious offenses that can result in significant financial harm for those impacted. Because white-collar crimes are non-violent and often done at high levels, it can be difficult to understand who exactly is affected by these offenses. Continue reading for more information, and secure skilled representation during your case by contacting an Upper Peninsula criminal defense lawyer today.

What is a White-Collar Crime?

A white-collar crime is a criminal offense that is non-violent and done for financial gain. They are generally committed in professional or commercial settings and are often associated with business professionals, executives, government officials, or any person in a position of power or trust with access to financial systems or information.

The term “white-collar crime” is thought to have originated in 1939 by sociologist Edwin Sutherland, who named the offense after the white-collared shirts that perpetrators often wore to work.

Common examples of white-collar crimes include the following.

• Embezzlement: Misappropriating funds or assets entrusted to the offender
• Insider trading: Making stock-related decisions based on information that has not been made publicly available
• Identity theft: Stealing a person’s personal or financial information for fraudulent reasons
• Money laundering: Concealing the true origin of illegally obtained funds or assets
• Securities fraud: Misleading investors about investment opportunities with false or doctored financial information
• Bank fraud: Deceiving banks to obtain a loan or other benefit
• Health care fraud: Deceiving the health care system to obtain reimbursement or funds from nonexistent or false issues
• Tax evasion: Illegally avoiding or underpaying taxes
• Ponzi schemes: A form of investor fraud that uses new investor money to pay back previous investors
• Bribery: Giving or receiving something valuable to influence a decision or receive a benefit

Who is Affected by White-Collar Crimes?

Upon first glance, white-collar crimes may seem to only affect large companies or the extraordinarily wealthy. However, the impact of these crimes is significant.

Y Delord-raynal published an essay examining the victims of white-collar crimes and divided them into two groups: voluntary and involuntary victims. Voluntary victims are those who sign up for the situation under the guise of making money or receiving a benefit, but, unbeknownst to them, are volunteering to be scammed. Think of people who join Ponzi schemes or investors who shell out millions of dollars for a company that is actually bankrupt.

Involuntary victims are exploited in routine commercial transactions that seem normal and that shouldn’t inherently result in financial loss. Involuntary victims can include someone whose identity was stolen or a creditor who loses money due to a company’s fraudulent activities.

Individuals, businesses, employees, investors, shareholders, government agencies, and the general public can be victims of white-collar crimes. The impact of these offenses is widespread and long-lasting. For more information and legal advice, contact an experienced criminal defense attorney today.