Business fraud is a broad umbrella term that covers a wide variety of serious offenses. Being charged with any kind of business fraud could affect a person’s reputation and employability, making them extremely difficult to trust or hire. Business fraud allegations should never be taken lightly, but more often than not, business fraud allegations have more to do with personal spats and misunderstandings rather than a true, objective basis. Below are three of the most common examples of business fraud:
Frequently making the headlines for both big and smaller businesses, insider trading is an extremely common occurrence. Insider trading occurs when a person uses internal, non-publicized information about the company to sell, buy, or trade stock. This is considered a crime because it proves an unfair advantage to other stock holders, though the person who commits the insider trading sometimes sees it as a smart business move. Many who commit insider trading may not even realize it is illegal, and yet the penalties can be extensive jail time and high fines.
Embezzlement is the act of stealing money from a business account or an employer. This is often done on a smaller scale, such as repurposing the use of petty cash or using business funds to pay for personal uses. Embezzlement can also be as elaborate as payroll fraud, creating false employees to funnel money out of the company. Allegations for embezzlement can often be a misunderstanding on a smaller scale. On a larger scale, it could be the result of a lapse in judgment in the midst of a personal financial crisis.
Often done in tandem with tax evasion, money laundering is the act of taking illegitimate funds and going through elaborate steps to make them seem legitimate. Money laundering is often used on a large scale to cover up for larger crimes, dubious funding, terrorism, and more. On a smaller scale, it could be as simple as repurposing funds. Regardless, money laundering can lead to extensive jail time and extremely high fines.
Fighting allegations of business fraud, regardless of the type, requires a knowledgeable lawyer who can carefully strategize a solid defense. With business fraud, time is of the utmost importance. If you or someone you know is facing allegations of business fraud, don’t wait. Schedule a consultation with John W. Tumelty today online or by calling 609.345.3300.