10 White Collar Crime Cases That Made Headlines - Criminal Justice USA

 

white collar crime case study

Another chapter in the white collar crime saga of the early s, the InStock trading scandal made headlines because of the involvement of Martha Stewart, who sold about $, of the company’s stock a day before an experimental cancer drug failed to gain FDA vcsonlinzes.cf: Staff Writers. Sep 15,  · Famous White Collar Crime Case #2: The Enron Scandal. Of course, there is more to white collar crime than just Ponzi schemes. Another famous white collar crime case derives from the Enron scandal. Enron, a former American energy company, became the largest company in history to file for bankruptcy, with $ billion in assets. Oct 20,  · Because those involved in white collar crime are usually high-ranking business professionals and executives, serious cases usually make headlines nationwide and even globally. The following are some of the most famous (or infamous) companies and individuals involved in .


Justice Is Served: 5 Famous White Collar Crime Cases


White collar crime is the term used to characterize crimes that are economic in nature and non-violent. It typically involves fraud committed by a business or government professional. However, offenders white collar crime case study also come from outside of the business and government world. Specific examples of white collar crime include, but are not limited to: insider trading, bribery, security fraud, identity theft, and Ponzi schemes. Many people have heard of a Ponzi scheme, but how exactly does it work?

In the simplest terms, a Ponzi scheme is payment of money to earlier investors from funds contributed by later investors, rather than from actual returns. The scheme fails if there are not enough later investors to pay off the earlier investors or if too many current investors withdraw and demand payment. However, Ponzi schemes can be extremely complex, and not all of them are created equal.

Also, note that Ponzi schemes are slightly different than Pyramid schemes. The main distinction is white collar crime case study a Pyramid scheme also provides commission for participants that recruit new participants, white collar crime case study.

The namesake of the Ponzi scheme comes from the famous con artist, Charles Ponzi. Yet, the most notorious Ponzi scheme in U. White collar crime case study gained trust from his clients by paying them what he had promised. Unbeknownst to those clients, white collar crime case study, the money was coming from the funds of later acquired investors. To hide this fraud, Madoff created a false portfolio for his clients and filed false statements to the Securities and Exchange Commission SEC.

Over the decades, the scheme developed into a massive, global operation. It continued up untilwhen the economy crashed and investors began to pull out and demand payment. Madoff lacked the funds to pay out the retreating investors, and subsequently confessed the scheme to his sons. His sons turned him in to the police and Madoff was arrested for one count of securities fraud.

Inhe was charged and pleaded guilty to 11 counts of fraud, money laundering, theft, white collar crime case study, and perjury.

In support of this sentencing request, USAO also asserted three arguments. First, Madoff defrauded thousands of people and institutions, including charitable foundations. Second, the extensive nature and long duration of his crimes implores a maximum sentence. Madoff continued to allow the wrongdoings to occur over a long period of time, even though he had the power to stop it at any point. Third, Madoff waited to confess until the very last minute, only when he became incapable of upholding the scheme.

The sentencing judge sided with the USAO and sentenced Madoff to years in prison, plus probation and forfeiture of assets. Of course, there is more to white collar crime than just Ponzi schemes. Another famous white collar crime case derives from the Enron scandal. The CEO and founder of Enron, among many other officials, were charged with an extensive range of white collar crimes, including: fraud, conspiracy, false statements to banks and auditors, and insider trading.

The Enron white collar crime case study began to deteriorate from financial losses and increasing debt in To hide these shortcomings, the company committed a series of complex crimes to create the appearance of financial stability. For example, the company committed fraud by shifting any liability from Enron to another company, but not recording this loss in its books.

In addition, Enron lied to its employees and the public by significantly overstating the value of the company, causing employees and shareholders to lose money, and even go bankrupt. This allowed Enron to be portrayed better, but painted a false financial picture to the public and financial institutions.

The CEO and founder of Enron were both found guilty of conspiracy and fraud. The result of this monumental breakdown of Enron? The Sarbanes Oxley Act: federal law that created new white collar crimes and new standards for public accounting firms, corporate management, and corporate boards of directors.

Joffe Law, white collar crime case study, P. We will fight for you to defend your reputation and protect your rights. Skip to content. Facing Federal Criminal Charges? Ponzi schemes Many people have heard of a Ponzi scheme, but how exactly does it work? Previous Post. Next Post.

 

Famous White Collar Crime Cases | Joffe Law, P.A.

 

white collar crime case study

 

Another chapter in the white collar crime saga of the early s, the InStock trading scandal made headlines because of the involvement of Martha Stewart, who sold about $, of the company’s stock a day before an experimental cancer drug failed to gain FDA vcsonlinzes.cf: Staff Writers. Sep 15,  · Famous White Collar Crime Case #2: The Enron Scandal. Of course, there is more to white collar crime than just Ponzi schemes. Another famous white collar crime case derives from the Enron scandal. Enron, a former American energy company, became the largest company in history to file for bankruptcy, with $ billion in assets. Oct 20,  · Because those involved in white collar crime are usually high-ranking business professionals and executives, serious cases usually make headlines nationwide and even globally. The following are some of the most famous (or infamous) companies and individuals involved in .