The goal of white-collar crimes is to make money through nonviolent offenses. These crimes are usually done by people in professional settings, like executives, workers, or public officials. Getting money or property illegally through fraud, lies, or abuse of power is a big part of many white-collar crimes. As these crimes can cause serious financial harm, the punishments for those who commit them can be severe.
There have been reports of corporate fraud in Houston, mostly in real estate and investment scams. Fraudulent activities that trick investors and hurt financial markets have hurt the city’s business sector. To keep the economy stable, the Houston authorities actively prosecute people who are involved in white-collar crimes.
If you are accused of these types of crimes, you may need to hire a Houston white collar crime defense lawyer to protect your rights and build a strong legal case.
Below are some of the types of white-collar crimes and potential penalties for them.
Corporate Fraud
Fraud in the business world happens when a company or its leaders do dishonest things to make money. Lying on financial records, trading on inside information, and changing stock prices are all examples of this.
Potential Penalties:
- Fines that can go up to millions of dollars
- Imprisonment for several years, based on how severe the fraud was
- Restitution payments to victims
- Permanent bans from holding executive positions
Embezzlement
Embezzlement is when someone misappropriates money or property that was entrusted to them without permission. This often happens at work when workers take company money and use it for their own needs.
Potential Penalties:
- Long prison sentences, usually between 5 and 20 years
- Hefty fines, sometimes more than the amount stolen
- A criminal record that makes it harder to get jobs in the future
- Court-ordered restitution to pay victims
Ponzi Schemes
A Ponzi scheme is a type of investment fraud where new investors’ money is used to pay back investors who put money in earlier. When new investments slow down, these schemes fall apart, leaving many people without their money. The scheme’s namesake, Charles Ponzi, used a fake investment program to scam thousands of people in the 1920s.
Potential Penalties:
- Prison terms of up to 30 years for large-scale schemes
- Seizure of assets to repay investors who were cheated
- Bans from working in the financial business for life
- Criminal and civil charges that ruin their finances
Extortion
Extortion is when someone uses threats or force to get money or property. Blackmail is one type of this crime. In this type of crime, someone threatens to reveal bad information unless they are paid. Another type of extortion is when public officials ask for bribes to give government contracts.
Potential Penalties:
- Up to 20 years in prison
- Heavy fines based on the amount extorted
- Civil lawsuits from victims seeking compensation
- Loss of professional licenses and reputation
Bankruptcy Fraud
People or companies commit bankruptcy fraud when they lie about their finances to avoid paying their debts. This includes lying about assets, falsifying documents, and bribing government officials. A lot of dishonest people try to use the system to their own benefit.
Potential Penalties:
- Fines of up to $250,000 per fraudulent report
- Prison terms of up to five years per charge
- Forfeiture of goods that were obtained illegally
- Permanent restrictions on the ability to file for bankruptcy in the future