Log In | Subscribe | | |

WhiteCollarCrimeCaseStudies.com

Case Summary: 

It might seem an unlikely financial crime but in effect that's what it was: a scheme to get free sex from prostitutes by means of fraud. Prosecutors stopped short of charging him with rape (although his actions arguably negated the consent the women gave) but did charge him with obtaining sex by coercion. But that was only one of his charges.

Type of conduct: 
Other financial crime

Case Summary: 

The owner of a laboratory will be jailed after pleading guilty to defrauding insurance companies for medical tests that were never performed in a fraud that depended on duping multiple people.

Type of conduct: 
Healthcare / Medicare fraud

Case Summary: 

The music industry is littered with artists who end up poor because their managers ran away with the money they earned, or didn't properly account for it, or added in personal or corporate expenses as chargebacks. Luckily, none of the clients of the latest accountant / manager to get caught has ended up sleeping on a dirty mattress or not having enough to eat as has happened to others in the same position. But none of that is the most interesting thing about this case.

Type of conduct: 
Embezzlement

Case Summary: 

A mayor of a small American town took bribes from a contractor who did business with the town. The contractor escaped prosecution.

Type of conduct: 
Corruption

Case Summary: 

We even had difficulty deciding which section to put this case in: is it a Ponzi scheme? Well, sort of. Is it an investment fraud? Perhaps. Is it a document fraud, a "wire fraud" or accounting fraud? How about operating an unlicensed securities business, or an unlicensed investment business? One thing is certain: as soon as he claimed to have a "proprietary trading program," his victims should have run away.

Type of conduct: 
Ponzi / Pyramid fraud

Case Summary: 

An officer with US Customs and Border Protection was engaged to check incoming and outgoing international mail for breaches of various laws. That was a golden opportunity for a criminal.

Type of conduct: 
Other financial crime

Case Summary: 

An employee of a securities company placed orders relating to contracts for difference to gain an advantage for two clients at the expense of his employer.

Type of conduct: 
Securities fraud

Case Summary: 

Intra-community crime is a particular problem amongst migrant groups who trust those of a similar background who have already arrived and, seemingly, made some success in their chosen destination. All too often, unfortunately, the new arrivals fall into the hands of fraudsters and, even, organised crime gangs. In California, where Mexicans are a significant immigrant group, the pickings can be lucrative. But they don't always get away with it.

Type of conduct: 
Consumer fraud

Case Summary: 

In February 2017, a director of a public company in Australia was convicted of embezzling AUD8.6 million and sentenced to jail for ten years with an order that he serve at least six years.

Type of conduct: 
Embezzlement
Case Summary: 

A former "Home Finance Manager" (mortgage salesman) with a bank was jailed for three years after pleading guilty to abusing his position to make a dishonest gain for himself and others. He submitted for approval fraudulent applications, knowing they were untrue, for applicants to borrow money that they would then "invest" in a developer with which he had a connection.

Type of conduct: 
Consumer fraud
Case Summary: 

In February, 2017 James Michael Farrell, age 63, of Wenonah, New Jersey, USA was convicted of money laundering, witness tampering, and obstruction of official proceedings, related to his activities on behalf of members of an extensive drug trafficking operation. The case is important because part of relates to the use of proceeds of criminal conduct being used for the payment of defence lawyer's fees.

Type of conduct: 
Money Laundering
Case Summary: 

Edward Majerczyk, 29, of Chicago, has been sentenced to nine months in a US Federal jail after pleading guilty to "a phishing scheme that gave him illegal access to over 300 Apple iCloud and Gmail accounts, including those belonging to members of the entertainment industry in Los Angeles."

Type of conduct: 
Computer crime
Case Summary: 

Right from the days of snake oil potions and the Carbolic Smokeball Company, charlatans have sold fake pharma to the gullible and the desperate. Amongst the most desperate, and the most gullible, are those who believed the claims by a company that it had a herbal preparation that increased length and girth of the penis and increased sexual performance. As a herbal preparation, the product sidestepped US Food and Drug Administration approval. Thousands of customers who paid a substantial amount for the tablets complained they did not work as advertised, or at all. The Department of Justice and other agencies had to take a look.

Type of conduct: 
Money Laundering
Case Summary: 

After pleading guilty to operating a Ponzi-style fraud based upon supposed returns from real estate investments, a Californian man has been jailed for six and a half years.

WhiteCollarCrimesCaseStudies is available exclusively to members of World Money Laundering Report and Financial Crime Risk Officers. Login or sign up to read the full case study.

Type of conduct: 
Ponzi / Pyramid fraud

Pages