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Types of financial crimes

On Behalf of | Jan 18, 2022 | Criminal Defense |

A financial crime often has an ulterior motive of deceit and misrepresentation for personal gain. These crimes can happen on an individual level or as part of a criminal organization in Colorado or another state.

Ponzi schemes

White-collar crime takes its name from the usual offenders, which are people in affluent business sectors. A Ponzi scheme is an example of a white-collar crime that promises investors a lucrative income at almost no risk. However, the old investors are paid with the investment funds of new recruits, which makes the scam appear to work. These schemes fail if too many old investors decide to cash out or there are fewer new recruits.

Embezzlement

Embezzlement is a financial crime that involves a person taking assets or funds entrusted to them by another party. An embezzler might commit the crime by misrepresenting the books to hide profits they have pocketed from vendors.

There must be a fiduciary relationship between the offender and the plaintiff, meaning the plaintiff relied on the defendant. Penalties for embezzlement are often harsh, so criminal defense may challenge the evidence and assert that there was no willful intent.

ID theft

ID theft involves stealing personal data, such as credit card numbers, to make purchases and open accounts. A common method that scammers use to steal IDs is through phishing emails that appear to be from a legitimate business. Instead of the business site, it takes the recipient to the scammer’s site and directs them to enter their information. A scammer may also insert card readers hidden around a register’s scanner or an ATM to record credit card information.

The FBI makes an effort to track these crimes and impose harsh penalties. Some financial crimes include up to 30 years of jail for a conviction, so an accused party should know their rights.