Types Of White Collar Crimes

924 Words4 Pages
Gregg Berry
Professor Rossi
Criminal Investigation
November 18, 2017

White Collar Crimes What is white collar crime? White collar crime has many types of different crimes. Some types of white collar crimes which are the most common are fraud, embezzlement, tax evasion, and money laundering. The main key factor that makes a crime a white collar crime is based on the fact that the individual does this crime in order to have a financial gain. One type of white collar crime people talks, about the most is a Ponzi scheme. The Ponzi scheme was created by Charles Ponzi. With a Ponzi scheme, the person makes a promise that the investor will have a high rate of return that can’t be found in the stock market. This person provides fake reports claiming the investor is making money when in actuality they are making nothing. One investor’s money is used for another investor’s money to show profit is being made. All the money is actually going to the person that is in charge of the Ponzi scheme. The scheme will grow through word of mouth and more and more people will want to get in, so they too can make a lot of money. The investor can back out at any time they please. One of the most notorious persons that people remember for committing one of the largest Ponzi schemes was Bernard Madoff. It was claimed that he stole over 65 billion dollars, but in actuality, he stole 20 billion dollars. His firm was responsible for making false reports claiming that they earned returns of 65 billion dollars. There is little evidence on when Bernard started his Ponzi scheme. Bernard claims that he started it in 1992 but research has showed it possible could have been started in the 60’s. Bernard Madoff was born was born on April 29, 1938 in Queens, New York. He attended Hofstra University and majored in Political Science. He later on graduated from Hofstra in 1960. He later on enrolled at Brooklyn Law School but he did not stay there for long. After leaving Brooklyn Law School Bernard and his wife Ruth started his investment firm called Bernard L. Madoff Investment Securities, LLC. He used the money from his life guarding job, his other job installing sprinkler systems, and 50,000 dollars that he borrowed from his in laws to
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