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According to the Federal Bureau of Investigation,
white-collar crime is estimated to cost the United States more
than $300 billion annually. Cornell research shows
that some of the most common white-collar offenses include:
antitrust violations, computer/internet fraud, environmental
law violations, financial fraud, bribery, kickbacks,
counterfeiting, public corruption, money laundering,
embezzlement, economic espionage, and trade secret theft.
You are at risk. The only question is how much
exposure have you suffered and how do you stop what is
currently happening from happening again?
The phrase "white-collar crime" was coined in 1939 during a
speech given by Edwin Sutherland to the American Sociological
Society. Sutherland defined the term as "crime
committed by a person of respectability and high social status
in the course of his occupation." Over the past years
there seems to have been a lot of debate to what qualifies as
a white-collar crime. The term as typically utilized today
encompasses a variety of nonviolent crimes, usually committed
in commercial situations, for financial gain.
A white-collar crime refers to crimes committed by business
people, entrepreneurs, professionals, or public officials.
White-collar crimes are different then street crimes because
they are through deception and not force or violence. The New
York Times recently reported that white-collar crimes are on
the rise due to the bursting of the stock market bubble.
Street crimes have decreased in the past decade, yet the rise
in white-collar crimes is attributed to the baby-boom
generation that is aging and the common knowledge that White
Collar crime "pays" and holds a less severe penalty than
"physical" crimes. The most publicized
white-collar crimes of recent have included Enron, Adelphia,
Global Crossing, Kmart, Qwest Communications Int'l,
Schering-Plough, WorldCom, and Xerox.
Contrary to the popular belief, White Collar criminals are
thieves and the methods used to conceal their offenses are not
only ingenious, but artful. Many white-collar crimes are
especially difficult to prosecute because the perpetrators are
sophisticated criminals who attempt to conceal their theft
through a series of complex transactions. Concealment of the
crime is the #1 objective of the offender, and it becomes an
element of the crime itself.
Because it is a skillfully disguised artful form, the
investigation itself is often long and laborious as far as
proving criminal intent is concerned. The crimes might be
disguised in a maze of legitimate transactions, which are
quite normal if viewed in isolation. The cumulative effect
however is the commission of a criminal offence. From the
standpoint of the criminal, the ideal white collar crime is
one that will never be recognized or detected as a criminal
act.
White-collar crimes can be prosecuted in state or federal
courts depending on what laws were violated. The white-collar
crimes being committed today are different then of the past,
possibly due to the change in demographic and economic forces.
Technological advances that have increased white-collar crimes
such as financial crime likely influence the shift in
white-collar crime. Although white-collar criminal charges are
usually brought against individuals, corporations may also be
subject to sanctions for these types of offenses, so take the
pro-active preventative steps necessary.
Governmental regulations are
increasingly being enforced through criminal prosecution
rather than mere civil fines. In certain areas, seemingly
benign conduct by top management and employees can lead to
individuals or the corporation. The penalties for white-collar
offenses include fines, home detention or community
confinement, costs related to prosecution, forfeitures,
restitution, supervised release, and imprisonment. This trend
and other factors make it essential that businesses,
executives, and other individuals receive counseling from a
competent attorney and an Bauer Risk Management Investigator.
Bauer Risk Management has conducted numerous
internal investigations for corporations and institutions
relating to alleged misconduct giving rise to possible
criminal liability by the corporation, the institution or
employees. The scope of such reviews includes the evaluation
of the underlying allegations or misconduct, identifying
responsibility, advice on compliance or other solutions to
prevent recurrence, and representation with regard to any
related investigation or litigation.
Typically during an
internal investigation, our Investigators will report back to the board
of directors or officers, and, when necessary, make contact
and work in conjunction with the appropriate
authorities the appropriate to reduce risk, exposure and
criminal liability. Because of the nature of white
collar and civil fraud matters, it is critical that steps be
taken to preserve the reputation of you, our clients, in your
business dealings with shareholders, regulators and the press,
among other constituencies. A distinct competency of Bauer Risk Management
in this area is the ability to minimize
potentially negative public relations through swift action and
strategy.
The Association of Certified Fraud Examiners comments that white
collar crime increases are due to society aging as well as
the increase of education level. A white collar crime often
has a lesser punishment and the way white-collar crimes are
being committed continues to become more complex. The Justice
Department attributes the increase in accounting fraud
white-collar crimes to the pressure for companies to meet
revenues and projections.
Bauer Risk Management can investigate all types of
fraud allegations and can help you locate those responsible
and discover the information necessary for recovery,
protection or prosecution. CALL TODAY FOR A FREE NO
OBLIGATION CONSULTATION. An initial consultation implies no
commitment to proceed and our discretion is assured.
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