White collar crimes have been a primary focus of contemporary law enforcement officials for the past several decades. The criminal situations can be difficult to establish without obvious fraudulent behavior, as many times the shenanigans can be hidden in the massive amount of company documents. Some cases are blatant prima facie situations that are understood by the trained investigator.
Most white collar crimes are based in accounting and business activity classification, but there are still some white collar crimes that tend to be found with regularity.
Lying, Stealing, and Cheating:
According to the Bureau of Investigation, this is the essence of most white collar crime and pinpointing criminal activity can be difficult. Corporate management professionals assess inputs and outputs on a daily basis and honest mistakes can be made commonly. It is important for the company to catch billing and information errors as soon as possible to avoid confusion in the accounting repair process, but deliberate errors can be an ingrained process.
Problems occur when corporations routinely erroneously qualify assets and liabilities in an orchestrated effort to impact profit margins and potential stock prices, along with bonuses and dividends. The practice of “borrowing from future sales” has been a common practice that can create major problems. The concept is based on estimated future sales and is added to current sales reports. They are falsely reported as an asset for the company, but as companies cannot be imprisoned. The result is normally a fine.
Tax evasion is absolutely illegal, but tax avoidance is a common practice for all businesses. PAK & UAE Lawyers firm, explain this difference as “By law, tax avoidance is considered to be using the law to avoid paying taxes; tax evasion is illegally using means to skip out on taxes.” Deliberate false cash-flow classifications can impact the amount of taxes that the company owes and can amount to evasion. Diverted revenues to anonymous bank accounts are a common method, as this is currently the tax shelter that many companies and individuals utilize.
Prosecution jurisdiction limited to Pakistan, United Arab Emirates and all international industries have access to banking institutions worldwide. This is clearly one of the most prevalent problems for white collar law enforcement officers because the companies normally maintain internal legal departments that have carefully structured the “parking” legalities.
One of the common problems in the digital age is identity theft. Making financial transactions online can leave the novice computer operator vulnerable to attack from data miners who are looking for a back-door opportunity to steal from an unsuspecting individual. This is particularly problematic for individuals with significant resources that could be drained from accounts with hacked password information. Many hackers actually assume multiple identities in an effort to maximize benefits by opening new accounts. Recovering from identity theft can be a frustrating process, but this has opened a new industry for companies serving as information protection entities.
Why White Collar Crime Occurs
The reasons behind white collar crime are numerous. They can range from general mischief to absolute greed and the phenomena have moved outside of the exclusive corporate arena. Securities fraud has also been a focus of the Department of Justice in recent years, but prosecuting corporate officials has proven futile and expensive. In many ways, this activity often occurs because the operatives can get away with it, allowing fines to become a necessary expense of doing business.
Corporations that are major economic components, such as large hedge funds and investment banks, have requested government help instead of prosecution for egregious manipulative management models. This, in turn, has had a major impact on economic growth and governmental balance sheets when the entity is perceived as too important or “too big” to fail.
Regulatory Investigations and White Collar Defence:
In recent years, government regulators and criminal prosecutors around the world have continued to increase attention on the activities of banks and corporations, wherever located, along with their senior officers, directors, and outside advisors.
Successfully managing the risks arising from this increased focus requires a deep understanding of both the technical legal requirements of multiple jurisdictions and the practical concerns and investigative methods used by government regulators and criminal prosecutors. Most importantly, early identification of potential criminal and civil liability risks will provide the best opportunity for effectively crafting a response that protects the long—term interests of the client in all relevant jurisdictions.
Even the decision to conduct an internal investigation into possible employee wrongdoing can later present difficult issues if the investigation is not tailored to the risks, the jurisdictions, and the regulators involved in the matter.
Our global team of lawyers responsible for representing clients in regulatory and white collar criminal investigations bring a powerful combination of breadth of experience and local expertise to the task of helping clients solve potential problems that arise in the context of cross—border and domestic regulatory and criminal investigations.
Our practice includes both conducting internal investigations on behalf of clients and defending clients subject to government investigations. We cover a number of areas of specialty, notably the following:
anti—bribery and corruption
White Collar Criminal Defense & Parallel Proceedings:
Today, law enforcement agencies are casting a wider net and are aggressively pursuing individuals and organizations to detect wrongdoing. Being the target of an investigation can cost you more than your reputation.
Our white collar defense attorneys represent both individuals and businesses in a wide range of federal, state, and administrative criminal matters.
We have tried some of the most highly publicized white collar criminal cases in the country and established an extraordinary success rate. As criminal inquiries and administrative proceedings often move forward simultaneously, our attorneys are skilled at managing both to facilitate a global resolution.
Early on, we develop aggressive and creative strategies for managing grand jury and other governmental investigations to help you avoid indictment. By vigorously defending against allegations from the outset, we often succeed in convincing prosecutors not to proceed criminally against our clients, or to otherwise resolve matters short of indictment. We also regularly help clients conduct internal investigations designed to detect and correct problems before the government becomes involved.