White collar crime is something of a term of art. It has no definition at law but is widely understood by the industry to refer to non-violent/non-sexual offending by professionals (or those in a position of responsibility) involving dishonest deception to illicit a gain or expose another to a loss. It can concern a wide range of offences committed by individuals or legal entities. Examples of include money laundering, market manipulation, city cartels, securities fraud, embezzlement, bribery and corruption and corporate fraud. These crimes can have far-reaching consequences on the direct victims, but also shareholders and the wider tax paying public.
Common Types of White-Collar Crime
- Fraud: Fraud is one of the most common types of white-collar crime. It is defined by the 2006 Fraud Act as offence whereby someone dishonestly makes a false representation, and intends, by making the representation to make a gain for himself or another, or to cause loss to another or to expose another to a risk of loss. This could be anything from falsifying financial records to misleading investors or customers. Examples of fraud include credit card fraud, insurance fraud, tax evasion, and investment fraud.
- Money Laundering: Money laundering is defined by the Proceeds of Crime Act 2002 as POCA as "the process by which the proceeds of crime are converted into assets which appear to have a legitimate origin, so that they can be retained permanently or recycled into further criminal enterprises". In simpler terms, it is the process of concealing the origins of illegally obtained money. This can often be by means of complex financial transactions, or use of offshore accounts, fake businesses, or shell companies, to "clean" illicit funds. Money laundering is a serious offence under UK law, and those convicted can face severe penalties.
- Embezzlement: Embezzlement occurs when an individual with trusted access to funds or assets, such as an employee or financial manager, misappropriates those funds for personal use. This crime is typically committed in businesses or institutions and can range from small sums of money to large-scale embezzlements involving millions of pounds.
- Bribery and Corruption: Bribery is the act of offering, giving, receiving, or soliciting something of value to influence the actions of another party. Corruption often involves public officials or corporate executives abusing their power for personal gain. The UK Bribery Act 2010 introduced stringent penalties for those involved in bribery and corporate corruption.
Penalties for White-Collar Crimes
White-collar crimes are treated seriously by UK law enforcement, and the penalties can be severe. Depending on the nature and scale of the crime, penalties may include:
- Imprisonment: For serious offences like fraud, embezzlement, or money laundering, individuals can face significant prison sentences, ranging from several months to several years.
- Fines: Offenders may be ordered to pay substantial fines, which can be in addition to any compensation or restitution owed to victims.
- Compensation: In some cases, those convicted of white-collar crimes may be required to pay restitution to victims, especially in cases involving fraud or embezzlement.
- Confiscation Orders: Under the Proceeds of Crime Act 2002, the court can order the confiscation of assets gained through illegal activities. This could include property, money, or other valuables that were acquired through criminal conduct.
White collar crime investigations can span more than one jurisdiction and may prove extremely complex. In the early stages of defending an allegation of white collar crime, it is crucial to avoid errors or misjudgements which could prejudice the outcome of a case for a defendant at a later stage. If you're facing white-collar crime charges, it's crucial to seek legal advice as soon as possible.
At Duncan Lewis Solicitors, our expert team specialises in white-collar crime, offering tailored legal solutions for cases such as fraud, money laundering, and embezzlement. We are committed to securing the best possible outcome for our clients. Contact us today for trusted legal advice and support in navigating these complex cases.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
