White-collar crime is one of those terms that is banded about a lot and not everyone understands exactly what it is. Therefore, this can be tricky to explain to someone that wants to know what is going on. This is particularly true when you are dealing with your white-collar crime solicitor. We look at the different types of white-collar crime and what is involved with them.
Fraud is one of the most common types of white-collar crime and it can be committed in one of three different ways. Fraud by false representation is committed when someone produces information that is not correct in order to make a gain, or cause someone a loss. The second is fraud by failing, in breach of legal duty, to disclose information. This means that you were required to tell someone something and failed to do so. The third way is fraud by abuse of position. This is where you take advantage of your job, maybe as a bank manager, in order to get a mortgage or loan or some other way of getting money.
This is where a person creates a company for the specific reason of attempting to defraud creditors. This happens sometimes in big businesses where shell companies are created so that money can be moved between different organizations. The idea is that someone will ultimately lose out down the line. For example, you could create a company that takes out a number of loans and then sells all its ‘assets’ to a third company. Because the company was created specifically to take advantage of creditors then this is fraudulent trading and can result in up to 10 years in jail for all involved.
Conspiracy to Defraud
This is where there is an agreement between the directors of a company to attempt to conceal the profits of a company so that they can gain from them themselves. Because a conspiracy requires more than one person to take part, it means that if two people were involved and one of them was found not guilty of the offense, then the other person must also be found not guilty because it is impossible to conspire with yourself.
This is an attempt by a person who is managing the financial accounts of a company to falsify records. This can mean the creation of false bills, false payments, creating false purchase invoices or just simply making false records in the company accounts. It is also possible to commit this offense by destroying any document that is required in order to provide the validity of the accounts, so, for example, destroying an invoice that should be recorded in the accounts so that it doesn’t appear is an offense of false accounting.
Final ThoughtsThese are just some of the types of white-collar crime that you can be accused of. If you find yourself being charged with any of these crimes then it is important to get yourself a good white-collar crime solicitor.