White Collar Crime



The term "white collar crime" is generally used to describe crimes involving cheating or dishonesty. Although there is no fixed definition of white collar crime, there are a number of nonviolent crimes typically grouped together as white collar crimes. These crimes typically are committed by professionals or entrepreneurs under the guise of legitimate business activity.

As a practical matter, it is impossible to describe every activity that fits within the definition of white collar crime, because white collar crime takes many forms. Some criminal actions are prohibited by specific laws narrowly drawn to outlaw particular activities. Other actions are not covered by specific laws but instead are prosecuted under one or more "catch-all" laws criminalizing general dishonest behavior.

White collar crimes are difficult to prosecute because they are often complex cases. White collar crimes often carry lesser penalties than other crimes because they are not associated with violence. Typical sentences include enormous fines, restitution, or imprisonment in county jail or state prison.

Bribery

California law and Federal law both prohibit bribery. Specifically, the elements of bribery may be met if a government official is offered or seeks anything of value for him or herself in exchange for performing an official act or any action in violation of his or her official duty. The purpose of most bribery statutes is to prevent people from seeking preferential treatment from public officials and to prevent public officers from using their offices for personal gain.

Computer Crime

The California Penal Code includes provisions covering computer crime. It is illegal to knowingly introduce a virus into a computer, computer system, or computer network. In addition, it is against state law to knowingly and without permission access a computer and damage, delete, destroy, or use any data, computer, and computer system or computer network. It is unlawful to use computers as part of a scheme to defraud or to wrongfully control or obtain money, property, or data.

A violation of this law subjects the offender to a range of sanctions depending on the specific violation, the value of computer services used, the amount of the injury, and whether it is the defendant's first violation of the statute. The maximum punishment is a fine up to $10,000 and/or imprisonment in the state prison for three years.

Federal statutes specifically outlaw conduct involving the intentional or knowing access of a computer to obtain confidential national security information, financial information of a financial institution or of a credit card issuer, information of a federal department or agency, or to commit fraud.

Embezzlement

To embezzle means to take another's money and property through abuse of an official job or position of trust. The elements used to convict a person of embezzlement include the relationship of trust and confidence with the specific intent to deprive the other person of his property. Embezzlement can take many forms. Examples include: an accountant falsifying records and skimming profits or a bank teller walking home with an extra 20 dollars from his or her drawer.

Fraud

Fraud is intentionally lying in order to induce someone to rely on the lie and part with something of value. Like embezzlement, fraud can be either complex or simple. The federal government has three general anti-fraud statutes for mail fraud, bank fraud, and wire fraud.

Mail fraud has two elements: (1) a scheme devised or intending to defraud or for obtaining property or money by fraudulent means, and (2) using the mails in furtherance of that fraudulent scheme. The "scheme to defraud" element of mail fraud is deliberately broad. It encompasses a wide variety of criminal activity, including credit card fraud, securities fraud, medical drug fraud, and frauds based on political malfeasance. Because the mail fraud statute uses such broad language and because it is relatively easy to prove, mail fraud is one of the most common charges brought by federal prosecutors. Charges of mail fraud frequently are made even in cases in which more specific crimes have been charged.

The federal bank fraud statute criminalizes the conduct of any party who "knowingly executes, or attempts to execute, a scheme or artifice to defraud a financial institution, by means of false or fraudulent pretenses, representations, or promises."

The federal wire fraud statute is similar to the mail fraud statute, but requires the interstate or foreign transmittal of a communication by wire, radio, or television.

Obstruction of Justice

Obstruction of justice refers to interference in one of the three branches of government, which are the legislative, justice, and executive branches. Obstruction of justice can take many forms, including assaulting a process server, improperly influencing a juror, stealing or altering a record of process, and obstructing a criminal investigation by officers of a financial institution. Such activities as picketing, parading, or using sound amplification devices in front of a courthouse, a building or residence occupied by a judge, juror, witness, or court officer may also be prosecuted as obstruction of justice.

Perjury

Perjury laws penalize anyone who willfully or knowingly makes false statements under oath. Sworn statements are those which are made under penalty of perjury. Such sworn statements may be written or oral and need not be made in court; a person may perjure himself or herself in deposition or written testimony. It is also illegal for anyone to procure another person to commit perjury. This is known as subornation of perjury.

Tax Crimes

Often, people charged with other white collar crimes are accused of committing tax crimes as well. Failing to file a tax return or filing a false tax return is a crime, as is interfering with the administration of the internal revenue laws. Specific laws prohibit obstruction, extortion, or bribery with regard to a tax official.