Types of White Collar Crimes By: Cole martin

Bank Fraud Bank fraud is the use of potentially illegal means to obtain money, assets, or other property owned or held by a financial institution, or to obtain money from depositors by fraudulently posing as a bank or other financial institution. The term “Ponzi scheme” is named after Charles Ponzi’s famous pyramid scheme. Ponzi infamously promised returns of 50% in 45 days, which were actually paid with by funds from new investors. The scheme eventually failed in 1920 leaving 5 banks and all investors ruined, the latter of which were able to only recoup 30% of their initial investment. Charles Ponzi made $20 million through his pyramid scheme, equal to $222 million in 2011.

Blackmail The action, treated as a criminal offense, of demanding money from a person in return for not revealing compromising or injurious information about that person. On May 26, 1971, Qantas, the biggest airline carrier in Australia, received a call from a man calling himself “Mr. Brown.” He claimed that a bomb had been planted on a Qantas flight bound for Hong Kong, and he would detonate it if they did not pay him $500,000. To prove he was serous, Mr. Brown even directed the authorities to an airport locker containing another bomb.

Bribery The giving or offering of a bribe. Siemens (Germany) $1.6 billion Bribed Argentine government officials to win government i.d. contract

Cellular Phone Fraud The unauthorized use, tampering or manipulation of a cellular phone or service. Subscriber fraud

Computer fraud Computer fraud is defined as any act using computers, the Internet, Internet devices, and Internet services to defraud people, companies, or government agencies of money, revenue, or Internet access. In 1983, seventeen-year-old hacker Kevin Poulsen infiltrated many different computer networking systems. He continued to hack into computers until he was caught in 1991. In 1994, he was sentenced to four years in prison.

Counterfeiting Made in exact imitation of something valuable or important with the intention to deceive or defraud. Catch me if you can

Credit Card Fraud Credit card fraud is a wide-ranging term for theft and fraud committed using or involving a payment card, such as a credit card or debit card. Albert Gonzalez and the credit card fraud

Currency schemes The practice of speculating on the future value of currencies. Rigging of Foreign Exchange Market Makes Felons of Top Banks This may be used to lye to people so they give their money to use.

Embezzlement When a person who has been entrusted with money or property appropriates it for his or her own use and benefit. Bernie Madoff’s Ponzi scheme

Environmental schemes The overbilling and fraudulent practices exercised by corporations which purport to clean up the environment. People may use this to make so extra money under the table.

Extortion Occurs when one person illegally obtains property from another by actual or threatened force, fear, or violence, or under cover of official right. The Lindbergh baby case

Forgery When a person passes a false or worthless instrument such as a check or counterfeit security with the intent to defraud or injure the recipient. The David Stein Forgeries

Health Care Fraud Where an unlicensed health care provider provides services under the guise of being licensed and obtains monetary benefit for the service. A California pathologist who operated a medical clinic was sentenced to 25 years in prison for writing fraudulent prescriptions for oxycodone in exchange for cash.

Insider trading When a person uses inside, confidential, or advance information to trade in shares of publicly held corporations. Albert H. Wiggin: The Market Crash

Investment Schemes Where an unsuspecting victim is contacted by the actor who promises to provide a large return on a small investment. Ponzi Scheme

Larceny/Theft When a person wrongfully takes another person's money or property with the intent to appropriate, convert or steal it.

Money Laundering The investment or transfer of money from racketeering, drug transactions or other embezzlement schemes so that it appears that its original source either cannot be traced or is legitimate. The Bank of Credit and Commerce International

Racketeering The operation of an illegal business for personal profit. Al Capone

Securities Fraud The act of artificially inflating the price of stocks by brokers so that buyers can purchase a stock on the rise. Jordan Belfort Penny stocks

Tax Evasion When a person commits fraud in filing or paying taxes. Al Capone arrested for Tax Evasion

Telemarketing Fraud Actors operate out of boiler rooms and place telephone calls to residences and corporations where the actor requests a donation to an alleged charitable organization or where the actor requests money up front or a credit card number up front, and does not use the donation for the stated purpose. Twelve people have been arrested this week on federal fraud charges stemming from boiler room operations that solicited investments in independent movies with false promises of up to 1,000 percent returns and misrepresentations as to how investor funds would be used.

Welfare Fraud To engage in an act or acts where the purpose is to obtain benefits (i.e. Public Assistance, Food Stamps, or Medicaid) from the State or Federal Government. Jesse Jackson Jr., son of the famed “Reverend” Jesse Jackson, was sentenced in a case of misusing $750,000 of campaign funds