Financial crimes or notably known as white-collar crimes refers widely to nonviolent crimes committed by business professionals. Financial crimes have a deep impact on the society as it affects the economy and the stability of a country. It is a gateway of sourcing criminal activities like mafia operations, drug trafficking, illegal arms dealing and terrorist financing. Financial crimes ca be in the form of credit card fraud, insider trading and money laundering. Money laundering is a large scale financial crime.
Credit card fraud is a type of identity theft where a hacker steals the credit card information of a user to purchase something or withdrawing money from banks. It’s a critical crime in United States (Sayles, 2012). Everything is online now from paying bills to online purchase, a user can do anything without going anywhere physically. Even user can open a financial account. Because of this criminal can hack the user’s personal information like name, date of birth, social security number.
A conventional crime for instance a murder, robbery or rape has a clear victim therefore it is easier to notice the impact of the crime on the individual. Corporate crime does not have a direct victim, in fact most victims of corporate crime will not know the crime is taking place. Croall (2009:81) writes "Victimization is indirect and impersonal", An example of this was the mis-selling of Payment Protection Insurance where the victims were unaware they were even being sold PPI, such cases show the complexities related with the victims of corporate crime as they are not aware the crime is taking place. Victims of corporate crimes may not even feel the impact of the crimes against them for instance a two pence charge taken monthly from their account may seem relatively harmless however if this was happening to millions of people the corporate criminal would be making a fortune from what would be perceived as small change to people. Corporate crime covers a large amount of crimes and it is important to mention some crimes do have direct victims similar to conventional crimes for example the the deaths of 21 pensioners from E.coli 0157 in Wishaw, Lanarkshire, in 1997 when a butcher neglected standard food safety procedures.
As seen above, forensic auditing involves a wide spectrum of engagements that particularly revolve around investigative work. The investigation includes financial malpractices and fraud investigation. Yet further, forensic accountants are invited as expert witness in the event the investigated fraud is subjected to judicial proceedings. Forensic accounting on the other hand refers to specific progressive procedures carried out to produce evidence (Gerson, J., Brolly and Skalak, 2011). It is a procedure that involves auditing techniques to identify and gather evidence to prove the nature of the fraud and develop the context of the fraudulent activity.
Conspiracy also presents one of the three situations in which corporate officials and employees may face criminal liability under federal law even though they themselves did not commit, and perhaps did not even know of, the misconduct of other officers or employees. Thus, though an officer or employee has no direct hand in the matter, he is liable for foreseeable offenses committed by one of his co-conspirators in furtherance of their common scheme. The second situation occurs when the official or employee either instructs another to commit a federal offense or aids and abets another in the commission of a federal offense, or takes some action after the fact to conceal the commission of a federal offense by another. Like conspiracy, liability for procuring or aiding and abetting the offense of another focuses on conduct committed before the commission of the underlying substantive
Racketeering also involved dishonest way of getting money such as cheating or deceiving people and selling useless articles or information to others. Syndicate crime is a loose affiliation of gangster in charge of organized criminal activities such as selling illegal drugs or liquor, involved in illegal services and others (Rohit Bura, 2012). The syndicates create their own ‘business’ and own the money. Organized crime is dangerous and involve many offenders which cause more people to suffer under their
As of now I understand that it not only involves individuals but also businesses and other organization in collective planned schemes. What are the types of crimes that are classified as white collar crime? Securities Fraud Securities misrepresentation comes in numerous flavors, however one normal sort is "insider exchanging," in which somebody with inside data around an organization or speculation exchanges on that data disregarding an obligation or commitment. Contract misrepresentation and protection extortion, are amongst the more normal cushy wrongdoings. These can be as normal as an individual setting out on a protection plan to shamefully gather on a protection strategy subsequent to lying in application materials.
The fraud within WorldCom consisted of a number of so called “topside adjustments” to accounting entries to falsify declining earnings. These “adjustments” were improper drawdowns of reserves accumulated from its acquisition program and other sources, false or improper capitalization of costs which should have been expensed. It was a classic case of “cooking the books”. The judge handling the SEC proceedings in New York reported that the company overstated its income by approximately $11 billion. It also apparently overstated its balance sheet by approximately $75 billion which in turn caused losses in shareholder value of as much as $250 billion, a significant amount of which in employee retirement
2.2 Damages His activities had generated losses totalling 827 million clams, twice the bank's available trading capital. The collapse cost another 100 million clams. Employees around the world did not receive their bonuses. Middle Earth Bank was declared insolvent on 21 April 2000, and appointed administrators began managing the finances of Middle Earth Bank Group and its subsidiaries. Another bank purchased Middle Earth Bank in 2000 for the nominal sum of 1 clam and incorporated is into itself, assuming all of Middle Earth Bank’s liabilities.
It is important to distinguish between the two methods of corruption of the judiciary: the government (through budget planning and various privileges), and the private Judicial corruption can be difficult to completely eradicate, even in developed countries. Corruption in judiciary also involves the government in power using judicial arm of government to oppress the opposition parties in the detriments of the state. The judicial focus has often propitiated that literature uses interchangeably the terms fraud and corporate corruption and that the analyzed cases of corruption inside organizations (corporate corruption) have been mainly associated with criminal practices (Beasley et. al., 2002), neglecting the analysis of those legal but unethical corporation practices. It is largely suggested that fraudulent and illegal