WHITE - COLLER CRIME White Collar Crime is a non-violent crime that is committed by someone, typically for financial gain. It can describe a wide variety of crimes, but they all typically involve crime committed through deceit and motivated by financial gain. The most common white collar crimes are various types of fraud, tax evasion and money laundering. Many types of scams and frauds fall into the bucket of white collar crime. BANKRUPTCY FRAUD Bankruptcy proceedings can be a lifesaver for honest individuals overwhelmed by debt as a result of unemployment, a medical crisis, divorce, disability, or any number of other legitimate reasons. Unfortunately, bankruptcy can also be used by the unscrupulous to get out of paying their debts…even though they may have the financial assets to do so. And often, financial fraudsters use bankruptcy filings to prolong their illegal white-collar schemes—buying time before the game is up for good. India does not have a clear law on corporate bankruptcy even though individual bankruptcy laws have been in existence since 1874. The current law in force was enacted in 1920 called the Provincial Insolvency Act. The legal definitions of the terms bankruptcy, insolvency, liquidation and dissolution are contested in the Indian legal system. There is no regulation or statute legislated upon bankruptcy which denotes a condition of inability to meet a demand of a creditor as is common in many other jurisdictions. Winding up of companies is in the jurisdiction of the courts which can take a decade even after the company has actually been declared insolvent. On the other hand, supervisory restructuring at the behest of the Board of Industrial and Financial Reconstruction is generally undertaken using receivership by a public entity. SECURITIES FRAUD Securities fraud comes in many flavors, but one common type is insider trading, in which someone with inside information about a company or investment trades on that information in violation of a duty or obligation. For example, an executive knows confidential information about an upcoming company earnings report decides to sell of a chunk of his stock in the company. That would be considered securities fraud, specifically, insider trading. Another type of securities fraud is when someone seeks investment in a company by knowingly misstating the companys prospects, health or finances. By luring an investor to put up money based on false or misleading information, the company and individuals within it commit securities fraud. False or misleading statements in public reports from publicly traded companies also can constitute securities fraud. To commit securities fraud, those speaking on behalf of the business must make these false statements with knowledge that they are false, or at least reasonably should know them to be false. MORTGAGE FRAUD Mortgage fraud schemes range widely in terms of sophistication and complexity. Common features in these schemes include misrepresentations of the borrower’s income and/or identity and manipulation of the property’s age, size and value. Generally, borrowers fraudulently overstate their income and use false names on mortgage documents or multiple loans on the same property. In addition, the targeted property is often fraudulently described as newer, larger and in better condition than it is in reality. INTELLECTUAL PROPERTY THEFT It’s an age-old crime: stealing. But it’s not about picking a pocket or holding up a bank. It’s robbing people of their ideas, inventions, and creative expressions—what’s called intellectual property—everything from trade secrets and proprietary products and parts to movies and music and software. It’s a growing threat—especially with the rise of digital technologies and Internet file sharing networks. And much of the theft takes place overseas, where laws are often lax and enforcement more difficult. Intellectual property theft is trending the wrong way. Despite measures to prevent it, respond to it, and mitigate the effects of this type of costly and even dangerous crime, intellectual property theft is growing—all over the world. Globalization, in fact, is often the root of the problem. INDIAN DETECTIVE AGAINST CRIME Investigate / Detect and fight against crime & criminals Post Box No. 77, New Delhi – 110001, INDIA Phones : 0091 - 9810392680, 9250519528, 9313176993 idacgov.in, e-mail: [email protected]
Posted on: Sun, 14 Sep 2014 17:13:35 +0000
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