It’s difficult to find someone who hasn’t heard the term “white collar crime.” However, explaining these types of offenses and what they mean is a whole different ballgame.
Misconceptions about white collar crimes run rampant, probably because the phrase covers such a wide array of criminal acts. Still, it’s important to understand not only what white collar crimes are and how they are punished – but also how your conceptions about them that are false. Read on to find the truth behind some of the biggest white collar crime myths.
White Collar Crime: What Is It?
The term white collar crime has been around since the 1930s. It’s had a lot of time to become a part of the common vernacular and to create ideas in popular culture about what it is. For a crime to be considered “white collar,” it usually involves fraudulent or financial activity that is non-violent in nature. Typically, the person who commits the offense is in a position of trust or power, but this isn’t true in every instance of white collar crime.
At the heart of every white collar crime is some violation of trust, some sort of concealment, and deceit. People commit these crimes for financial gain or to avoid losing services, property, or money – or to secure some kind of business or personal advantage. These crimes are by no means victimless, as many people are often left devastated in their wake.
The most common white collar crimes include:
- Corporate Fraud
- Money Laundering
- Commodities and Securities Fraud
- Embezzlement
- Ponzi Schemes
- Pyramid Schemes
- Bankruptcy Fraud
- Extortion
- Mortgage Fraud
- Medicaid and Medicare Fraud
- Credit Card Fraud
Myths Surrounding White Collar Crime
It seems like white collar crime is reported in the news quite frequently. Busted Ponzi schemes or fraud in the corporate world make the news when they happen, usually because the scope of the crime is large.
This creates a lot of misunderstanding and misinformation about white collar crimes and how they are handled by prosecutors. Some of the most prevalent white collar crime myths include:
Rich and Powerful People Are Not Prosecuted
Prosecutors regularly pursue charges against people with very high profiles in society, and reputation doesn’t appear to protect them. In fact, the news of their crimes often goes viral and exposes even more illegal acts in the process.
White Collar Criminals Avoid Jail
Another misconception about white collar criminals is that they don’t do jail time – which is demonstrably false. Those convicted of serious white collar crimes that involve a lot of money or something else with a lot of value often go to prison for years.
The penalties for white collar crimes depend on the underlying crime and the amount of money involved. In Texas, they can serve as little as two years in prison for theft of up to $20,000 or as much as 99 years for theft of over $200,000. Even the misdemeanor white collar crimes can send someone to jail for a year for stealing $1,500.
Normal People Are Not White Collar Criminals
The fact of the matter is that anyone can be a criminal. But this myth persists likely because of the financial issues involved in white collar crimes. Many assume that only wealthy people commit them – or people with some sort of power or influence. Don’t believe this myth, because there have been many instances of people who work at schools and even churches who embezzle money and get caught – and they seem like “normal” folks.
White Collar Crimes Doesn’t Happen Often
It’s unfortunate that this one is a myth. The truth is that white collar crime happens in various ways all the time. Even though you may hear about big cases in the news only every few years, the people in law enforcement working behind the scenes see white collar crime on a nearly daily basis. Many prosecutions will never be heard about by the public, but they do happen frequently.
White Collar Criminals Are Treated Differently
You may have heard rumors about white collar criminals getting lenient sentences for their crimes, but this is not the case at all. While violent criminals may be subject to harsher penalties for their crimes, white collar crimes that involve a lot of stolen money and property can get sentences just as harsh as any other.
