White collar crimes are committed by the educated and affluent for the sake of financial gains. While the definition persists, the scope of these crimes has expanded with the rapid development of technology. White collar crimes were complicated to begin with; now that most of them take place on digital platforms, their complexity has reached new and impossible levels. Incriminating someone for a white collar offense is no easy task. These kinds of crimes are obscure and ultra-sophisticated, as the culprits are highly intellectual individuals. Lack of sufficient evidence against the offender’s unlawful activity and character shall render the case invalid. Proving a white collar scheme requires profound investigation, which often works in favor of the accused.
In the past, most white collar criminals were subject to a trial in criminal court, but prosecution is rare nowadays. Criminal prosecution is focused on punishing the person liable of the crime, but there is no guarantee that the victim will be compensated for their loss. According to Civil Litigation Attorney in Houston, TX, civil lawsuits for white collar crime have become more feasible lately. While the proceedings have no criminal implications, the chances for receiving financial reimbursement are greater. In addition, many white collar offenders are willing to cooperate, in order to sidestep jail time and avoid the public humiliation associated with criminal investigations.
Ponzi and Pyramid schemes are two conventional white collar crimes that still exist and many people fall for them. The names are often used interchangeably, but they are not the same. There are some operational similarities, but both schemes are structured differently. The Ponzi scheme is named after the Italian-American Charles Ponzi, who was the first to execute this farfetched money-minting plan in 1919. The origin of the Pyramid scheme is unknown, though it is popular belief that it was inspired by the Ponzi scheme after all.
The Ponzi scheme is outright fraud, as the conspirator is not a part of any genuine business. He takes money from the investors, promising them unbelievable profits after a brief period. When the old investors return to collect their revenues, the conspirator pays them with the money of new investors. The cycle continues until someone discovers the reality, and the last of investors are left empty-handed.
On the contrary, pyramid schemes usually emerge from legitimate business opportunities; they usually involve sale of a product. Every primary investor recruits several secondary investors to make a bigger profit from trading the merchandise. The secondary investors recruit even more investors below them and the chain continues. These schemes are frequently unsuccessful as only the top investors are able to earn lucrative returns.
Modern white collar crimes are less elaborate and a lot more beneficial in terms on making money. Identity theft, money laundering, insurance fraud, kickback, insider trading, credit card fraud, cheque kiting, and counterfeiting are common shortcuts to extract large sums of money with minimum risk of being traced. People holding important positions in the corporate world may frame someone below them to get away with stealing from the company. If you were wrongfully accused of or pulled into an intricate white collar ruse, hire a defense lawyer right away.