Examples Of White Collar Crimes
A white-collar crime is defined as “the illegal act of deceit, concealment or violation of trust, without violence or physical force to achieve financial gain within a company or organization" (Fbi.gov, 2017). White- collar crimes can be devastating to companies and commit them to financial hardship. Furthermore, organizations and individuals that commit such crimes has a sole purpose of obtaining money or other services from their act. Throughout the years there have been numerous cases of white-collar crimes that have defrauded a numerous of companies and individuals. Substantial amounts of acts that may constitute a white-collar criminal act are embezzlement, bank fraud, tax fraud, health care fraud and money laundering.
WorldCom was one
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That number rose to 11 billion dollars in total asset that was subsequently inflated. In 2002, Ebbers resigned and two months later, his financial officer was fired (Scharff, 2005). The investigation followed by members of Ebbers executive team arrested and charged with securities fraud. Subsequently, Ebbers was charged with conspiracy to commit, securities fraud, and several counts of falsifying files with the Security and Exchange Commission he was later on sentenced to 25 years in a federal prison.
The WorldCom scandal and bankruptcy caused investors billions of dollars as well as numerous downsizing of employees. Furthermore, numerous customers ended up leaving the company with hopes to seek other opportunities with other companies that can provide them with sophisticated service that would not overcharge them and fraud them out of their money. Many individuals as well as investors received monetary settlements from the company, which also played a major role in WorldCom filing for bankruptcy in
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Furthermore, the Oxley act also mandated strict guidelines and reforms to improve the financial sector as well as the disclosures that corporations provide to the securities board in which would help prevent them from committing accounting fraud (Fbi.gov, 2017). This particular act was created, after major companies with public scandals such as Enron Corporation, and WorldCom committed fraud on its investors’. Such act will require legitimate confidence with financial statements as well as crucial penalties for financial crimes committed by companies or
Essay On The Sarbanes-Oxley Act Of 2002
689 Words | 3 PagesThe creation of the Sarbanes-Oxley Act of 2002 (SOX Act) by senator Paul Sarbanes and representative Michael G. Oxley impacted a change in the way accounting was reported by government and non government bodies. It’s creation stemmed from the many corporate scandals occurring at the time such as Enron and Worldcom. The creation of this act opened many channels for the government to enforce oversight into the inner practices of large corporations. The Sarbanes-Oxley Act of 2002 was the drastic change the government needed to manage and review corporate financials and reporting practices. By forcing corporations to comply with a more stringent set of regulations and allowing the government an audit and oversight board, they were allowed to positively
Analysis Of More Than 20 Fraudulent State Id's Found During White Collar Crime
1427 Words | 6 Pages(Salamat 2016). The word fraudulent itself is a representation of criminal activity, which ties in with the topic of this paper – white collar crime. Furthermore, this paper will answer the question how scholars explain white collar crime and its criminals. The first offender is a 31-year-old female, and identified as Melissa Diaz. The second offender is a 22-year-old male, identified as Edgar Fuentes.
Ambivalence Of White Collar Crime
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1831 Words | 8 PagesCHOICES “White collar crime” refers to those offenses that are anticipated to generate fiscal gain using some form of dishonesty. This type of crime is usually committed by people in the commercial world who, as a result of their employment position, are able to get a hold of large amounts of other people’s money. “White collar crime” does not involve forceful, drug-related, or blatantly illicit activities. In fact, perpetrators are typically involved in otherwise lawful industries and may hold respectable positions in the community prior to the discovery of their fraudulent schemes. The slogan “white collar crime” was made up in 1939 by Edwin Sutherland during a dialog which he gave to the American Sociological Society.
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1825 Words | 8 PagesThese crimes include violence, theft with break-ins, and murder, embezzlement and money laundering, which are called white collar crimes. The denomination “white collar crime” was first used in 1939 by Edwin Sutherland.
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Examples Of White Collar Crime
724 Words | 3 Pagese. White-collar crime/pg. 207: Edwin Sutherland’s term for crimes committed by people of respectable and high social status in the course of their occupations; for example, bribery of public officials, securities violations, embezzlement, false advertising, and price flexing. White collar crime was something that the people of Libby, Montana had to deal with throughout the entire reign of W.R. Grace & Company while they occupied Libby and while their asbestos production was going on. They fit the description of white collar crime perfectly.
White Collar Crime Essay
830 Words | 4 PagesWhite-collar crime is a financially motivated nonviolent crime committed by business and government professionals. The term “white-collar crime” was first used by criminologist Edwin Sutherland in 1939 for the various nonviolent crimes usually committed in commercial areas for financial gain. White-collar crimes are classified as fraud, bribery, Ponzi schemes, insider trading, labor racketeering, embezzlement, cybercrime, copyright infringement, money laundering, identity theft, and forgery. Even though these crimes are committed without the use of weapons or threats of physical violence, it does not mean that they don’t create victims as they might destroy a person life or a company’s life cycle.
Examples Of Unethical Behavior In Business
1191 Words | 5 PagesA) Introduction Unethical behaviors in business affect everyone since you either work in the field or are a consumer of its services. Unfortunately, almost every company usually has individuals who act unethically whether it is for their personal benefit or for the sake of the company they work for. Unethical behaviors in business might be as simple as using company property or funds for personal gain to inside trading and financial fraud. According to The Chartered Institute of Management Accountants, nearly one third of business professionals feel pressured to compromise their ethical standards and are increasingly pushed towards unethical behavior. Moreover, “misconduct is common and accepted by business services professionals, the integrity of entire economic systems is at risk”, states Jordan A. Thomas, partner and chair of the Whistleblower Representation Practice at Labaton Sucharow law firm.
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902 Words | 4 PagesIn addition, The US Justice Department should not let WorldCom to go into merger and acquisition as it was creating monopoly. For that reason, they were able to play high. 3. How could the fraud at WorldCom been prevented?
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The Worldcom Fraud Case
2107 Words | 9 PagesBackground WorldCom, once known as one of the most powerful telecommunication organizations of the world, is now studied as a case of a fraudulent company that carried out unethical financial activities to cover its weakening position in the market. After some aggressive investment decisions, the company started to witness huge financial pressure. The management used various forged accounting entries to conceal its weakening position. Cynthia Cooper, Vice President Internal Audit, discovered the unethical activities and raised the issue with the management and relevant departments and received bitter responses. She carried out internal audits in her own capacity with her colleagues and compiled evidence against fraudulent activities.
Difference Between White Collar Crime And Street Crime
1326 Words | 6 PagesWhite collar crimes is one of the fastest growing types of crime in the world. Approximately almost every form of white collar crime increased in the recent years. White collar crimes do not involve violence and often take place in the workplace of people who work in white collar industries, such as accounting, office workers,
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