Fraud : A White Collar Crime That Is Victimless

Criminals walk amongst us everyday. When people hear the word criminal, “murderer”, “robber”, and “arsonist”, are what most people think of. No one thinks about the CEO of a billion dollar company, the everyday pharmacist, or even a trusted personal financial advisor. This is due to the “respectability” and “high social status” these occupations hold (Temchenko, 2016). Of the many crimes committed every year, white collar crimes are one of the most highest crimes committed because they are overlooked. On July 28, 2016 , 14-year-old Bresha Meadows, who had no prior record of violence, was arrested and potentially up for a life sentence in prison for saving her family from more domestic abuse by shooting her father (Jeltsen, 2016) . In 2003 the former chairman and chief executive of MCSi Michael E. Peppel, who pleaded guilty to conspiracy, money laundering and filing false documents with the Securities and Exchange Commission was only sentenced to spend seven days in prison because Peppel was a “remarkably good man”. The charges against Peppel carry a minimum 8 year sentence (Henning, 2013). Sentencing disparities between white collar crime versus street crime is a crime within itself and some form of justice needs to be served.

Why discuss the development of the marketplace? Why is it central to the concept of white-collar crime?

Fraud is a problem that nonprofits must be prepared to prevent within their financial departments. Embezzlements and financial statement fraud can destroy the financial health of a nonprofit organization and undermine the organization’s mission. Skimming is particularly difficult to identify because the money is often taken off incoming funds before the donations are ever annotated or accounted for (Zack & De Armond, 2015). However, these financial woes can be easily avoided. Nonprofit Quarterly identifies the issue of financial fraud as a “people problem” (Zack et al, 2015). Financial departments within corporations are required to follow strict laws and regulations that are not required to be followed by nonprofit organizations. The Sarbanes-Oxley

This shows a major breakdown in managerial controls that a low level employee was able to take steal money over the course of a couple of years without ever being suspected. This is a prime example of why internal controls are so vital and why even the government needs to be audited. Ruiz

In fraud committed against organizations, the victim of fraud is the employee’s organization. In frauds committed on behalf of an organization, executives usually are involved in some type of financial statement fraud; typically, to make the company’s reported financial results appear better than they actually are. In this second case, the victims are investors in the company’s stock. A third way to classify frauds is via the use of the ACFE’s occupational fraud definition, “the use of one’s occupation for personnel enrichment through the deliberate misuse or misapplication of the employing organization’s resources or assets” (ACFE, 2010). The ACFE includes three major categories of occupational fraud: asset misappropriations involves the theft or misuse of the organization’s assets, corruption involves the wrongful use of influence in a business transaction in order to procure benefits contrary to their duty to their employer, and fraudulent financial statements involving falsification of an organization’s financial statements for personal gain.

The environmental, social and economic chaos opened the way to abnormal conditions in the deviance of the funds. In these cases there are always people who want to take advantage of the situation, part of society responded generously while others reacted with greedy. The problem of the missing funds was a crime because it violated not only the state but also federal laws regarding the use of false documentation to receive funds. Hurricane Katrina caused the activity of the opportunists. As is common, disasters bring out the worst and the best of any individual in our society.

Health care fraud is defined as a type of white-collar crime that involves filing of dishonest health care claims in order to turn a profit. Healt Care Fraud,(http://www.law.cornell.edu/wex/healthcare_fraud) Fraudulent health care schemes come in many forms. False claims in billing, meaning they did a normal check up but billed your insurance company for procedures not done or labs never drawn. Lieing about performing a procedure but didn't do it but billed for it just to get paid. Another one is kickbacks and self referrals to gain financial benefits. Torts is defined as a civil wrong committed against a person or property, excluding breach of contract. An act, committed without just cause, may have caused physical injury, resulted in damage

Most people, when they hear the word “crime,” think about street crime or violent crime such as murder, rape, theft, or drugs. However, there is another type of crime that has cost people their life savings, investors’ billions of dollars, and has had significant impacts of multiple lives; it is called white collar crime. The Federal Bureau of Investigation defines white collar crime as

It is the utmost concern of the leadership in the nonprofit to guide the organization through financial control. Through the guidance of the board of directors and officers, the organization aims to achieve its mission and vision. This accomplishment cannot be done without the strategic plan of financial control put into place by the leadership. It is important to set up internal controls and according to the Council of Nonprofits, financial management practices that are systematically used to prevent misuse and misappropriation of assets, such as occur through theft or embezzlement" (Council of Nonprofits, 2016). Leaders in the nonprofit world would do well to ensure they are following all the standards of best business practices and remaining accountable to the board, state, and

There are various forms of cash fraud. One of the common schemes is cash larceny. Cash larceny refers to employees intentionally taking away cash from their employer without the employer’s knowledge and consent (Wells, 2014). Employees who have direct access to cash are more likely to commit cash larceny (Wells, 2014). Cash larceny is more likely to occur if there are weak internal controls in an organization. Weak internal controls make it difficult to prevent and detect an occurrence of fraud. This paper seeks to evaluate a recent case of cash larceny by a former employee at Glen Aubrey Fire Company.

2001-2006: UWW local associates faced terrible scandals due to corrupt CEO’s and employees who used hundreds of thousands of dollars, which were donated to this charity organization, for their personal use and luxury. Resulting, in mistrust of administrators and workforce of this organization by the public

These people have more opportunities to commit a white collar crime than a person with little authority. Peter Michelmore, a journalist for Readers Digest describes this situation well in his article, "On the Trail of a Scam" He describes a savings and loan scam and the man behind it all. "Meyer learned that New Era was run by John G. Bennet, Jr., a 57 year old evangelical Christian." (112) New Era was a getting money from a private university, in which he promised huge returns on their investment. New Era did show them huge profits, but only to gain their trust and invest more money. The private university was gaining trust in New Era and investing more money. Finally, when They had invested a large sum of money, New Era collapsed and John Bennet walked away with the university's money. Mr. Bennet is a prime example of our findings. He is a man over the age of eighteen and he is in a position of power. People have entrusted him with their money. To commit his crime, he needed to be in a position where he was trusted, or in authority. After he won their trust, he took their money. White collar crimes are growing at an alarming rate and must be curbed. There are many things that the nation can do to slow the growth of these crimes. The white collar crime that affects the most people is the scam. For that reason, scam prevention will be emphasized more than embezzlement. I feel that the most effective weapon against these crimes is to

In this day and age, a corporation, family, or individual always has a potential risk of encountering fraud within their money supply. On average, fraud and abuse costs U.S. organizations more than $400 billion annually (Federal Bureau Investigation, 2010). Many may think that white collared crime is only money laundering or stealing, but that is only two out of the sum that countless culprits get away with. The term “white-collar crime,” originally coined in 1939 is synonymous with the full range of frauds committed by business and government professionals (Federal Bureau Investigation, 2010). These frauds include anything from bankruptcy fraud, money laundering, identity theft, corporate fraud to a wide number of threats all circling

A not for profit organization is a corporation or an association that conducts business for the benefit of the general public without shareholders and without a profit motive (Legal, 2013).” There are immense community benefits as a not-for-profit generally accepts everyone regardless of ability to pay. Nonprofit organizations are granted tax-exempt status which helps them to provide services to the public and are expected to be effective managers of their finances as well as being efficient (Financial Management, 2010). In doing so, they can gain exemptions from federal and state incomes taxes and have the ability to solicit tax-deductible contributions (Financial Management, 2010). Organization must follow legal financial

A business can not work out without an account system, which includes internal. Internal controls are used by companies to make sure financial information is accurate and valid. Strong internal controls are signs of a financially healthy company and protect the company’s integrity. Strong internal controls can also increase a company’s profitability. There are several types of internal controls that companies used to protect themselves such as: Segregation of duties, asset purchases, supervisor review, internal audits and adequate documents and records. This paper will discuss several topics from a case study about And the Fraud