WHITE COLLAR CRIMES By Shaan Gill BANK FRAUD

WHITE COLLAR CRIMES By: Shaan Gill

BANK FRAUD • Definition: Bank fraud is a criminal act that occurs when a person uses illegal means to receive money or assets from a bank or other financial institution. • Famous Example: Marko Nikoli of Ohio appeared at the St. Paul Croatian Federal Credit Union and presented fake documents to support his loan request for $250, 000. • Explanation: Nikoli was arrested and in 2013, and charged with bank fraud and money laundering. After pleading guilty and avoiding trial, Marko Nikoli was sentenced to 27 months in federal prison, and ordered to pay $1 million dollars in restitution to the St. Paul Croatian Federal Credit Union. • Why: For Money

BLACKMAIL • Definition: 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. • Famous Example: Tom Cruise and Katie Holmes had their wedding photos stolen • Explanation: and were asked to give $1. 3 million for their return. • Why: To get people to do what you want them to do sometime that thing can simply be for them to pay you money

BRIBERY • Definition: the giving or offering of a bribe or the practice of obtaining something, especially money, through force or threats • Famous Example: The water gate scandal by President Richard Nixon • Explanation: The scandal lead to the resignation of the president himself in the end • Why: To keep people quite about bad stuff

CELLULAR PHONE FRAUD • Definition: Cellular fraud is defined as the unauthorized use, tampering or manipulation of a cellular phone or service. • Famous Example: My friend lost there cell phone and a lot of his information was hacked and used to other things that they should not have been used for • Explanation: He has to lay to get it back • Why: To get information to convert to money

COMPUTER FRAUD • Definition: 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. There are many methods used to perform these illegal activities. • Famous Example: Guys hacks a bunch of peoples emails and takes all there information through there • Explanation: He gets arrested by the police after he is reported for doing what he did • Why: To get information which then can become money for the attacker

COUNTERFEITING • Definition: Counterfeiting is a criminal offense that involves fraudulently manufacturing and distributing an item of lesser value than the genuine product, usually for the purpose of monetary gain. • Famous Example: A man made money last week from his printer and tried to use it to but items • Explanation: He was arrested by the police is they found out about it • Why: To get money

CREDIT CARD FRAUD • Definition: Credit card fraud is a form of identity theft in which an individual uses someone else’s credit card information to charge purchases, or to withdraw funds from the account. • Famous Example: Albert Gonzalez is said to have masterminded the hack of 45. 6 million credit and debit card number from the TJX Companies • Explanation: Albert Gonzalez was finally arrested in May 2008 on charges related to his hacking of the Dave & Buster’s corporate network, which garnered another 5, 000 credit card numbers, from which fraudulent transactions resulted in $600, 000 in fraudulent transactions. • Why: To obtain people information to get money out of it in the end

CURRENCY SCHEMES • Definition: schemes and trick that are involving or pertaining to currency and money of any type • Famous Example: The taking and currency schemes of bit coin online in many ways • Explanation: the criminal was never found • Why: To obtain more money for them self

EMBEZZLEMENT • Definition: Embezzlement is a crime that takes place when a person purposely withholds or uses assets and moneys for a purpose other than for what it is intended • Famous Example: Darryl Mc. Cauley was business manager to comedian Dane Cook from 2004 to 2008. During this four-year period, Mc. Cauley and his wife stole money from Cook’s personal and business accounts and used the funds to travel, purchase a home, and invest in stocks. • Explanation: Mc. Cauley was convicted and sentenced to five years in prison, and ordered to pay Cook back in full. • Why: For money gainage

ENVIRONMENTAL SCHEMES • Definition: Using the public environment for something that si shouldn’t and for someone's advantage. • Famous Example: People going into a random place and taking all the resources there that they are no permitted to take such as taking a bunch of rock that belong to the place • Explanation: They were caught and arrested • Why: To obtain money or to get the resources

EXTORTION • Definition: the giving or offering of a bribe or the practice of obtaining something, especially money, through force or threats • Famous Example: The water gate scandal by President Richard Nixon • Explanation: The scandal lead to the resignation of the president himself in the end • Why: To keep people quite about bad stuff

FORGERY • Definition: Forgery is a criminal act that takes place when a person falsifies something with the intent to deceive another person or entity. • Famous Example: In the 1960 s, David Stein made a living traveling from city to city, selling paintings that he claimed were done by European masters. • Explanation: Stein was arrested and spend 22 years in jail. Unfortunately, shortly after his release, he was back to selling fake works of art. • Why: To get something done or falsely signed for money a lot of times to get some item.

HEALTH CARE FRAUD • Definition: Health care fraud is a crime that involves misrepresenting information, concealing information, or deceiving a person or entity in order to receive benefits, or to make a financial profit. • Famous Example: For the four years between 2008 and 2012, Victoria Finney Brewton and Rodnisha Sade Cannon recruited families to sign their children up for their childcare programs for no payment, explaining that the services were free for Medicaid recipients. • Explanation: In April 2014, after pleading guilty of health care fraud, conspiracy, and aggravated identity theft, Brewton was sentenced to spend 111 months, over 9 years, in prison, and ordered to pay over $7 million in restitution to Medicaid, and over $570, 000 to the IRS. • Why: To get free health care

INSIDER TRADING • Definition: Insider trading is the trading of a public company's stock or other securities (such as bonds or stock options) by individuals with access to nonpublic information about the company. • Famous Example: A lawyer representing the CEO of a company learns in a confidential meeting that the CEO is going to be indicted for accounting fraud the next day. The lawyer shorts 1, 000 shares of the company because he knows that the stock price is going to go way down on news of the indictment. Why: To get money and other things like that

INVESTMENT SCHEMES • Definition: A Collective Investment Scheme (CIS), as its name suggests, is an investment scheme wherein several individuals come together to pool their money for investing in a particular asset(s) and for sharing the returns arising from that investment as per the agreement reached between them prior to pooling in the money • Famous Example: 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. • Why: To get money

LARCENY/THEFT • Definition: theft of personal property • Famous Example: Prusik-Parkin is accused of immediately setting the stage for the impersonation scheme by providing the funeral director with the wrong Social Security number and date of birth for his mom, to prevent her death from being noted in government databases. • Explanation: He is being held in lieu of $1 million bail. • Why: For Money

MONEY LAUNDERING • Definition: Money laundering is a term used to describe a scheme in which criminals try to disguise the identity, original ownership, and destination of money that they have obtained through criminal conduct. • Famous Example: In 2014, BNP Paribas, a French bank with global headquarters in London, pled guilty to falsifying business records after it was discovered the institution violated U. S. sanctions against Cuba, Sudan, and Iran • Explanation: As a result, BNP was forced to pay a fine of $8. 9 billion which is the largest fine ever imposed for violating those sanctions. • Why: To gain a ton of money

RACKETEERING • Definition: Racketeering, often associated with organized crime, is the act of offering of a dishonest service (a "racket") to solve a problem that wouldn't otherwise exist without the enterprise offering the service. • Famous Example: In 1979 the United States Federal Government went after Sonny Barger and several members and associates of the Oakland charter of the Hells Angels using RICO. • Explanation: The jury acquitted Barger on the RICO charges with a hung jury on the predicate acts: "There was no proof it was part of club policy, and as much as they tried, the government could not come up with any incriminating minutes from any of our meetings mentioning drugs and guns • Why: To get money

SECURITIES FRAUD • Definition: Securities fraud, also known as stock fraud and investment fraud, is a deceptive practice in the stock or commodities markets that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of securities laws. • Famous Example: Some famous examples of securities fraud are the Enron, Tyco, Adelphia and World. Com scandals. • Why: To gain money out of it

TAX EVASION • Definition: the illegal nonpayment or underpayment of tax. • Famous Example: Martha Stewart tried claiming that she didn't owe taxes on the property because she didn't spend much time there • Explanation: Before the home and garden guru was sentenced to prison for insider trading in 2004, she was forced to pay $220, 000 in back property taxes and penalties to the State of New York for her home there • Why: To not have to pay tax or collect extra to obtain more money

TELEMARKETING FRAUD • Definition: Telemarketing fraud is fraudulent selling conducted over the telephone. The term is also used for telephone fraud not involving selling. Older people may be targeted more frequently because the caller assumes they may live alone • Famous Example: People pretending to be the IRS and calling people and asking them for information about them so that they could use it to gain money off of them • Why: To option money

WELFARE FRAUD • Definition: Welfare fraud is one of the darker sides of the field of social work. As a crime in which an individual amasses state and/or government benefits by intentionally giving false information about their financial status and situation, it is essentially an abuse of a service offered in times of need • Famous Example: Illinois was paying more than $12 million in Medicaid payments for dead people. The payments were discovered in a follow-up audit, after an original audit found that 34 percent of randomly selected files contained eligibility errors. • Why: For people to scam the government and gain money out of it.