In a nutshell…
White collar crimes refer to criminal offending which is usually not violent in nature and relates to corporate criminal activity, fraud or improper laundering of money. White collar crimes are illegal financial transactions which defraud organizations or individuals and often cause irreparable financial damage. The long-term effects of this type of offending can follow victims for years, if not life.
White collar crimes can cause just as much damage as violent crimes due to the considerable consequences monetary related illegal activities can pose. Australia has developed several key financial companies, such as ASIC, to help provide regulation and oversight to companies and corporations who deal with larger amounts of money. They act regulatory bodies.
There are also extensive legislation, policies, and guidelines in place to try and counteract illegal activity on an ongoing basis. An example of this being the constant change to banking requirements within banks such as the Commonwealth Bank to try and keep internet and personal banking secure.
If you have been accused or charged with a white collar crime then you will need to seek legal advice immediately.
Corporate Crime
Money Laundering
Money laundering is a process whereby the original origin of money is concealed because it obtained by way of illegal activities. For example, drug trafficking or drug proceeds masked as legal money through a laundromat. Crimes committed of this nature are a form of fraud and usually tax evasion which is extremely serious.
Money laundering provides a financial advantage which would not have otherwise been obtained. Laundering of money is trackable through both bank records and financial records as the amount of money earnt does not always match the amount of money spent. It is an elaborate scheme to keep an operation going long term and it will usually require a company which turns over significant profit. This will keep the activity away from Australian securities oversight.
When running a scheme such as laundering, record keeping is the most important element. If the financial records and bank account records match then there will be no red flags but if they do not then an audit may be required. If an audit discovers discrepancies then those discrepancies need to be explained to satisfaction before the matter can be closed. It is an involved and necessary process to prevent criminal activity.
Insider Trading
Insider trading refers to a process whereby an individual buys or sells a public companies stock with personal or material knowledge about that stock from an individual inside that company. The transaction is considered illegal is the sale is based on information which is not publicly available. The process will obtain a financial advantage which would not have otherwise been obtained.
Insider trading is a serious offence and it is critical to ensure that all transactions are above board. The investments commission monitor transactions of this nature through an analysis centre to prevent money laundering.
Case Study
Henry is a portfolio manager for a large investment company in New South Wales. He has been working within the industry for over 40 years and is well versed with extensive experience. An ASIC investigation has been opened within his company due to the suspicion that the company may actually be functioning as a ponzi scheme.
There have been concerns from investors about withdrawing their money from the investment group and some complaints have been made to ASIC about the publicly available records seeming unrealistic. On paper, the company is complying with regulatory requirements
There are concerns however that a second set of documents/records exist showing markedly different figures. ASIC wish to question Henry about his possible involvement and he will require expert legal representation.
Criminal Justice System?
White collar crime falls within criminal law and corporate crimes. This type of offending is monitored by the Australian Federal Police who work closely with the Australian tax office, government bodies and Australian securities to determine fraud offending. Criminal prosecution requires interdepartmental cooperation to lay criminal charges.
Interdepartmental cooperation is how anti money laundering laws are established to prevent white collar crime offences. Corporate governance prevents organized crime as criminal cartels cannot as easily operate. This governance includes Australian transaction reports, oversight of financial institutions, government entities, etc to avoid market manipulation or deceptive conduct.
Counter Terrorism Financing
Counter terrorism is one of the most serious white collar offences that can be committed given the significant tie it has to national or global terrorism. Filtering money through a terrorism organization is a matter which is of most interest to the Australian Federal Police. Terrorism financing is a criminal law offence and the effects can have global implications.
Counter terrorism is the support of mass murder, political tampering and usually serious crimes against humanity. If an individual is found guilty of supporting a terrorist organization then the consequences could be life imprisonment. The financing may be the filtering of money through off shore bank accounts tied to terrorism organizations or it could even be foreign aid donations which are gathered under the guise of public assistance.
It is not uncommon for donation based charities or websites to emerge online which in fact support terrorism. For example, a charity to support the implementation of clean drinking water in third world countries may be set up and donations routed into what looks to be a legitimate off shore bank account. In actual fact, that company could be a front for a terrorist organization which simply looks legitimate.
Legal Advice
It is essential that legal advice is obtained in relation to all criminal offending whether it is white collar crime or not. White collar crime lawyers can be either criminal law experts or corporate law experts but it is good to engage a lawyer who has a good knowledge of both areas as they may both relate.
White collar crime cases can often combine a few different areas of law. For example, an individual could have committed corporate fraud but also tax fraud and insurance fraud within the same criminal offence. Such crimes can often be tangled within the same legal process. You will need a team of criminal lawyers to assist with untangling each separate crime.
No matter the lawyer you see, it is critical to explain the full details of your matter and leave no stone unturned. It is nearly impossible for a lawyer to adequately represent you if they are unaware of the full extent of your matter. For example, if you are aware that an investigation may have resulted in documents or bank records which implicate you in a crime, do not hide this fact from your lawyer. Your lawyer needs to fully understand the fault element associated.
Case Study
Caleb has been charged with a range of white collar crimes and has sought legal advice to determine how best to handle the matters in court. He is worried that due to his criminal history he could be facing the maximum penalty and be required to serve a term of imprisonment. Caleb is also facing allegations of being involved in organised crime.
Caleb’s criminal activity is mostly elaborate cyber fraud whereby he engaged in false advertising of cleaning products. When consumers purchased the cleaning products with direct transfer from either Visa or credit card, the money would be taken and the products not sent to the customer. The company was however well hidden. It took some time for the Australian competition and consumer affairs and other regulatory bodies to uncover the owners of the site.
Caleb’s bank account was eventually linked to the false advertising site and the consumer commission was able to link an email address used to communicate with customers to Caleb. To make matters worse, Caleb attempted to bribe a commission officer when they first approached him about the scheme.
FAQ
What is Tax Evasion?
Tax evasion is a process whereby an individual knowingly and intentionally does not pay a true tax liability. This is an offence which can create a significant financial gain depending on the size of the tax debt. For example, an individual could undertake paid cash work and not pay tax on the money that is earned. This is a form of tax evasion.
What Is Corporate Crime?
Corporate crime is a type of white-collar crime committed by an individual within a legitimate and legal organization for the employing companies benefit. For example, a ponzi scheme designed to make a financial gain for an organization without benefiting clients. Corporate crime cases often have multiple, widespread victims due to the nature of the criminal offences.
Is Bribery A Crime?
Bribery is a crime which can have serious consequences. Bribery is the act of providing a monetary or material benefit to an individual in exchange for influence. For example, an individual may offer a bribe to an investment commission officer in exchange for them looking the other way in relation to illegal activity.
What Other Offences Could I Be Charged With?
White collar crime is an overarching principle which covers a lot of different criminal offences. This can include, fraud, corporate crime, commercial matters, money laundering, counter terrorism financing, etc. A lot of different areas of law are often combined with white collar crime and this could require a range of lawyers from criminal to corporate or even commercial lawyers.
Case Study
Kathryn has been accused of accepting bribery as well as other serious criminal offences. She has been subject to previous criminal charges regarding securities fraud. Kathryn works for the investments commission and there were large transaction deposits found in offshore bank accounts in Kathryn’s name. The deposits were made around the same time audits were completed.
The investments commission is meant to be an independent commission against fraud, bribery and other such matters. There is a broad range of payments made and each different corporation involved has been found to not pass audit when completed independently.
Kathryn is found guilty of accepting bribery and sentenced to 4 years imprisonment. With good behavior, she will be eligible for parole in 28 months.
In a nutshell…
White collar crimes are a serious form of offending and they can have a widespread affect. White collar crimes extend from money laundering to ponzi scheme’s to counter terrorism financing at its worst. There can be an inter-cooperation between criminal offending, commercial offending and corporate crime with a mixture of crimes committed through one overall criminal activity.
The evidence gathered to successfully prosecute a white collar crime matter is significant and will likely involve a paper trail which proves involvement in some form of money laundering or fraudulent behavior.
It is important to access legal advice as early as possible in the process to ensure that you are aware of your obligations. It is important to fully understand the nature and severity of your offending and to understand the consequences you could be facing. White collar crime lawyers are the optimal lawyers to see when dealing with any matter classed as a white collar crime.
Jameson Law have a team of expert lawyers ready and willing to assist you with any legal issue no matter the area. The longer you wait to access advice, the harder the process will be.
