FBI-White Collar Crime

FBI-White Collar Crime

Introduction

White-collar crime is defined as a crime committed by people belonging to upper class of the society for illegal financial gain. They are taking extra benefits of their high position and indulge in unethical activities like corruption (Institute, 2010).

Corporate Fraud

It involves that cases which are related to the financial statements or accounting entries of organizations. In these cases, true financial conditions of the corporations or companies are hide from the investors, analysts and auditors. They are deceived by showing wrong accounting schemes. The organization's valuable measurements, share price and financial measures are by wrong financial statements. It also weaknesses to investors and economy of a country also suffered due to these types of crimes (FBI, 2011). Corporate Cases have following characteristics:

Fake financial statements are provided to the investigation authorities about the organization and public sectors.

They are recording wrong entries in their worksheets and accounting statements.

Illegal transactions are developed in order to avoid regulatory mistakes.

Corporate people use to do insider dealings. They start trading unethical material, information related to non-public, property information of people. They are leaking the information related to companies doing ventures and mergers. They are using government property for their personal use and think that it is a legal act. They are not paying taxes, do frauds in government dealings and indulge in such kind of activities which can give them financial gain (FBI, 2011).

Insurance Frauds

Insurance frauds include non-health care frauds, casualty frauds, disability, children life insurance and property crimes. The insurance companies of US each year earn a profit of $1.1 trillion and more than that. Each year more than $30 billion get the victim to the insurance fraud policies. One can take necessary measurements to avoid from these types of frauds (FBI, 2012).

Give importance to every notice send by the insurance company and do not listen to your agent whatever he or she say about the notice.

It is good to not to pay insurance installments without receiving a receipt.

An individual should avoid giving personal insurance receipts no to unknown persons.

Be aware of policies in which agents are recommending you to pay a certain amount of money for health care or other benefits. Always buy insurance from registered and licensed companies or agents. It is good to do some investigation about that company or person before buying insurance.

These types of frauds are mostly done by the insiders of a company like brokers, agents and professionals having knowledge. These can be investigated by asking from people or companies who get victim to these frauds. It can also be investigated by using various other techniques such as collaborating witnesses and informants. As the numbers of insurance companies are increasing so the chances of frauds are also increasing (FBI, 2012).

Enron Case

Enron was a US company which deals in commodities, energy and services. It was one of the world's best natural gas, communication and electricity companies. There were 20,000 employees of the company, but in 2010 , it faced bankruptcy (newsblog, ...