Financial white-collar crimes typically have stiff federal and state penalties. Whether you have been accused of a white-collar crime or you are a whistleblower, you may need to hire financial crime attorneys to look out for your best interests.
Ask Financial Crime Attorneys: How Can You Report a Suspected Financial Crime?
If you suspect financial crime at your workplace or from a solicitor, then there are a few ways you can report suspected fraud. Within the federal government, you can report financial crime to the FBI or your local United States Attorney’s Office. On the state level, you can report potential financial fraud to the state attorney’s office. There may be specific departments you need to contact within these offices based on the type of financial crime you are reporting.
Are You Protected As a Whistleblower?
If you report your workplace for potential financial crime, you will be protected by state and federal laws. Under Texas law, whistleblowers cannot be suspended, terminated, or punished by the employer for reporting a violation of the law. The federal government protects whistleblowers via the False Claims Act, which protects employees from termination, demotion, suspension, discrimination, or other forms of retaliation.
Whistleblower protection laws are designed to protect employees from the repercussions of reporting fraudulent activities. Since employees are protected by these laws, they may feel more comfortable reporting potential fraud. If an employer retaliates against an employee for whistleblowing, the compensatory damages paid to the employee can be very high.
Common Types of Financial Crimes
White-collar crimes come in many forms. People who commit white-collar crimes can include government officials, finance professionals, employees, and executives. Most white-collar crimes are related to financial incentives, such as funneling money away from a corporation or advising victims to poorly invest their money. The most common types of white-collar financial crimes include:
Embezzlement
Embezzlement is a crime that happens when an executive or an employee withholds money, assets, or property for personal purposes. This crime typically happens at banks, investment firms, or accounting agencies. Sometimes, embezzlement can involve falsely manipulating financial records to hide missing or misused funds.
Money Laundering
Money laundering is a crime that involves “cleaning” money that was illegally obtained to make the money appear legitimately obtained. Money laundering is often associated with various fraud schemes, as well as corruption, organized crime, and drug trafficking.
Bank Fraud
Bank fraud is a white-collar crime that involves an individual posing as a bank patron to obtain funds from a bank. Typically, the poser will have inaccurate banking information. Sometimes, the individual committing bank fraud may pose as a bank teller or other bank official or may contact patrons to obtain account information under false pretenses.
Securities Fraud
Securities fraud is a major crime that is related to fraudulent activity in the financial market. Financial advisors, brokers, and dealers who advise with the intent of increasing their own profits may be guilty of securities fraud. Much of the time, securities fraud involves larger investment schemes that need to be investigated by the FBI.
Mortgage Fraud
Mortgage fraud occurs when a lender or borrower falsifies information to obtain a mortgage loan. A borrower may use false documents to prove their income. A mortgage lender may falsify or inflate the value of a home to increase the loan amount the borrower will have to apply for.
Healthcare Fraud
Healthcare fraud presents itself in many different forms and can prey on state health insurance, government healthcare, or privately owned health insurance companies. Typically, this crime involves manipulating billing records or medical information to access extra financial reimbursement. Healthcare fraud can occur at any healthcare facility, pharmacy, laboratory, or medical equipment supplier.
Common forms of healthcare fraud include billing fraud, referral fraud, false medical record documentation, and prescription fraud. Some healthcare facilities or practitioners may also attempt Medicaid or Medicare fraud, which should be reported to the federal government.
Corporate Fraud
Corporate fraud is a crime that typically involves insider trading, self-dealing tax violations, misuse of corporate property, and kickbacks. The FBI generally investigates corporate fraud since this crime may involve significant amounts of money or transactions that are intended to evade regulations.
What Are Defense Strategies for White-Collar Crimes?
If you have been accused of a white-collar financial crime, then you will need to work with a lawyer who can prove your innocence or reduce your charges. Common defense strategies may include proving coercion, intoxication, incapacity, or insanity. Your lawyer may also be able to defend you by claiming entrapment against the agency investigating your case. Visit this page to learn more about how your lawyer can defend your case.
It’s critical to hire financial crime attorneys if you have been accused of a white-collar finance crime or you are a finance crime whistleblower. You should always report suspected financial fraud to the appropriate authorities, such as the attorney general or the FBI.
