The 10 Most Common White-Collar Crimes

When we think of crime, violent offenses, car chases, drug deals, and burglaries may be the first things to come to mind. However, not all crimes involve the physical acts or dramatic events we routinely see on television. White-collar crimes, often committed in offices or through a computer, are non-violent but can have serious consequences for everyone involved. Being accused of a white-collar crime can have you facing life-changing repercussions, even if you didn’t intend to violate the law. If you’re facing charges for one of these offenses, you must speak to an attorney immediately to protect your rights.

What are white-collar crimes?

White-collar crimes are non-violent offenses typically committed in a business or professional setting for personal or financial gain. These crimes can involve complex schemes, violations of trust, or sophisticated methods of deception. Because they’re non-violent, many people assume white-collar crimes are minor or don’t carry severe penalties. Unfortunately, this couldn’t be further from the truth.

A conviction for a white-collar crime can result in steep fines, restitution, and even time in prison. Further, the reputational damage can be devastating.

Let’s look at some of the most frequently-charged white collar crimes and what they involve.

1. Fraud

The Association of Certified Fraud Examiners defines fraud as “any activity that relies on deception in order to achieve a gain. Fraud becomes a crime when it is a ‘knowing misrepresentation of the truth or concealment of a material fact to induce another to act to his or her detriment’ (Black’s Law Dictionary). In other words, if you lie in order to deprive a person or organization of their money or property, you’re committing fraud.” Common types of fraud include wire fraud, mail fraud, insurance fraud, and healthcare fraud. Some fraud cases involve individuals making false claims, while others are sophisticated criminal conspiracies that can involve multiple people and large sums of money.

2. Embezzlement

Embezzlement is a white-collar crime in which a person or entity intentionally misappropriates assets entrusted to them. For example, an employee who moves company funds into a personal account is committing embezzlement. It’s most common to see embezzlement cases when workplaces give employees access to sensitive financial information or company accounts. When companies identify even minor discrepancies, they may start making accusations.

3. Insider trading

Per Investopedia:

The more infamous form of insider trading is the illegal use of non-public material information for profit. It’s important to remember this can be done by anyone, including company executives, their friends, relatives, or just a regular person on the street, as long as the information is not publicly known.

For example, suppose the CEO of a publicly traded firm inadvertently discloses their company’s quarterly earnings while getting a haircut. If the hairdresser takes this information and trades on it, that is considered illegal insider trading, and the SEC may take action.

This crime is common in the financial world and is heavily regulated by agencies like the Securities and Exchange Commission (SEC).

4. Identity theft

Identity theft occurs when someone steals someone else’s information – like their Social Security number or credit card details – and uses that information to commit fraud. In 2023, the Federal Trade Commission received more than one million reports of identity theft. This crime is often associated with hacking or stealing personal data online, but it can also occur in workplaces where employees can access sensitive customer or client information.

5. Money laundering

The Corporate Finance Institute defines money laundering as follows:

Money laundering is a process that criminals use in an attempt to hide the illegal source of their income. By passing money through complex transfers and transactions, or a series of businesses, the money is “cleaned” of its illegitimate origin and made to appear as legitimate business profits.

For example, someone might funnel money earned through illegal drug sales into a legitimate business, making it seem like the profits came from legal means. Money laundering charges often arise in connection with other crimes.

6. Bribery

Bribery is:

…the act of promising, giving, receiving, or agreeing to receive money or some other item of value with the corrupt aim of influencing a public official to discharge his official duties. When money has been offered or promised in exchange for a corrupt act, the official involved need not actually accomplish that act for the offense of bribery to be complete.

For instance, a business owner might bribe a government official to win a lucrative contract or bypass regulations. Even if the bribe is never accepted, offering it can still result in criminal charges.

7. Tax evasion

Tax evasion is “the illegal non-payment or underpayment of taxes, usually by deliberately making a false declaration or no declaration to tax authorities – such as by declaring less income, profits or gains than the amounts actually earned, or by overstating deductions. It entails criminal or civil legal penalties.”

The IRS takes tax evasion very seriously, and penalties can include hefty fines, interest on unpaid taxes, and prison time. However, honest mistakes in filing taxes are not the same as tax evasion.

8. Cybercrime

Per Homeland Security, cybercrime is “any illegal activity carried out using computers or the internet.” We live in a digital world, and cybercrime is one of the most quickly-growing types of white-collar crimes.  It includes offenses like hacking into systems to steal sensitive information, creating phishing schemes to trick people into sharing personal data or spreading ransomware to extort money from businesses or individuals.

9. Forgery

Forgery involves creating, altering, or using false documents to commit fraud or deceive others. Common examples include forging signatures on checks or creating fake identification documents. Even minor forgery can lead to serious consequences, particularly if they result in financial losses for others.

10. Ponzi schemes

The U.S. Securities and Exchange Commission defines Ponzi schemes as follows:

A Ponzi scheme is an investment fraud that pays existing investors with funds collected from new investors. Ponzi scheme organizers often promise to invest your money and generate high returns with little or no risk. But in many Ponzi schemes, the fraudsters do not invest the money. Instead, they use it to pay those who invested earlier and may keep some for themselves.

With little or no legitimate earnings, Ponzi schemes require a constant flow of new money to survive. When it becomes hard to recruit new investors or when large numbers of existing investors cash out, these schemes tend to collapse.

How a South Carolina criminal defense lawyer can defend you against white-collar crime charges

You know the stakes are high if you’ve been accused of a white-collar crime. You could face criminal penalties, civil lawsuits, and damage to your reputation. However, never forget – “An arrest is not a conviction.” Being charged doesn’t mean you’re guilty. The Law Offices of A. Randolph Hough can help you work through the legal system and build a strong defense. Here’s how we can defend you:

• We can review the evidence against you to ensure it was obtained legally and properly.
• Most white-collar crimes require proof that you intentionally committed the offense in question. If your actions were accidental or unintentional, we can argue that you lacked the necessary intent to commit the crime.
• In some cases, we may be able to negotiate a plea deal to reduce the charges or penalties against you.
• We can represent you in court and fight to protect your rights and reputation if necessary.

If you’re facing accusations of a white-collar crime, you don’t have to face the legal system alone. At The Law Offices of A. Randolph Hough, we understand the high stakes and complexities of these cases. Our team is dedicated to protecting your rights, reputation, and future. Contact or call us to schedule a confidential consultation today. We proudly serve all of South Carolina.