What is white collar crime?

UPDATED: Jul 18, 2023Fact Checked

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Jeffrey Johnson

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Mary Martin

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Mary Martin has been a legal writer and editor for over 20 years, responsible for ensuring that content is straightforward, correct, and helpful for the consumer. In addition, she worked on writing monthly newsletter columns for media, lawyers, and consumers. Ms. Martin also has experience with internal staff and HR operations. Mary was employed for almost 30 years by the nationwide legal publi...

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UPDATED: Jul 18, 2023

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UPDATED: Jul 18, 2023Fact Checked

White collar crimes typically refer to a type of crime committed by business people, entrepreneurs, public officials, and professionals through deception, as opposed to street crimes which tend to involve force and violence (see the section on “Violent Crimes”). Examples of white-collar crimes include embezzlement, bribery, extortion, larceny, fraud (e.g., health care, tax), bankruptcy, telemarketing, insurance, mail, securities and commodities law violations, environmental law violations, price fixing, racketeering, loan sharking, black market operations, obstruction of justice and perjury, identity theft, perjury and computer fraud.

Depending on whether federal or state law has been violated, white collar crimes can be prosecuted at the federal or state level. Penalties vary, but in some cases can result in large fines, restitution, and jail time.

Case Studies: Understanding White Collar Crimes

Case Study 1: Embezzlement and Crime Insurance

Sarah, a trusted employee at a retail company, embezzled funds by manipulating the company’s financial records. The embezzlement was discovered, and Sarah faced criminal charges. Fortunately, the company had Crime Insurance, which provided coverage for employee theft. The insurance policy helped the company recover the stolen funds and mitigate the financial impact of the crime.

Case Study 2: Fraud and Professional Liability Insurance

John, a financial advisor, engaged in fraudulent practices by providing false information to his clients, resulting in significant financial losses. Once the fraud was uncovered, John faced legal action from the affected clients. Fortunately, John had Professional Liability Insurance, which covered his legal defense costs and potential damages. The insurance policy protected his personal assets and provided him with financial support during the legal proceedings.

Case Study 3: Securities Fraud and Directors & Officers Liability Insurance

Emma, a high-ranking executive at a publicly traded company, was involved in securities fraud by misleading investors. This led to substantial financial losses for the shareholders. As a result, Emma faced legal repercussions and potential lawsuits.

Fortunately, the company had Directors & Officers (D&O) Liability Insurance, which provided coverage for Emma’s legal defense costs and potential damages. The insurance policy protected her personal assets and helped mitigate the financial consequences of the securities fraud allegations.

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Jeffrey Johnson

Insurance Lawyer

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Insurance Lawyer

Mary Martin

Published Legal Expert

Mary Martin has been a legal writer and editor for over 20 years, responsible for ensuring that content is straightforward, correct, and helpful for the consumer. In addition, she worked on writing monthly newsletter columns for media, lawyers, and consumers. Ms. Martin also has experience with internal staff and HR operations. Mary was employed for almost 30 years by the nationwide legal publi...

Published Legal Expert

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

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