The public’s interest in white collar crime cases is understandable–the crimes usually involve powerful individuals, a lot of money, and result in a significant impact to society and the economy. White collar crime cases cost the U.S. an average of $300 billion a year! Keep reading to learn more about the most notable white collar crime cases of 2024.
White Collar Crime
White collar crime is often referred to as a “victimless” crime, however that could not be further from the truth. White collar crime ruins businesses, reputations, relationships, and lives. It may not include violence, but it includes the probability of destroying many lives.
The term “white collar crime” was coined by sociologist Edwin Sutherland in 1939. He defined white collar crime as “…a crime committed by a person of respectability and high social status in the course of their occupation.” White collar workers generally worked in non-laboring administrative positions while blue collar workers traditionally wore blue shirts and worked in plants, mills and factories.
Types of white collar crimes include: public corruption, health care fraud, mortgage fraud, securities fraud, and money laundering, to name a few. The most popular category of white collar crime in 2024 is “fraud-other”, which encompasses health care fraud, identity theft, credit card fraud, tax fraud, basically any activity that relies on deception in order to achieve a gain. Corporate fraud is the most costly type of fraud.
Even though white collar crimes cost the U.S. more than other types of crimes, they are often underreported and tough to prosecute. The investigation of a white collar crime can be time-consuming and very costly. Also, white collar criminals are intelligent and difficult to catch.
The Federal Bureau of Investigations (FBI) is the primary agency investigating white collar crime in the U.S. They work closely with partner law enforcement and regulatory agencies like: the Securities and Exchange Commission (SEC), the Internal Revenue Service (IRS), the U.S. Postal Inspection Service (USPIS), the Commodity Futures Trading Commission (CFTC), and the Treasury Department’s Financial Crimes Enforcement Network.
White collar crime criminals face harsh consequences for their actions. Fines, imprisonment, and restitution to victims are common penalties. The penalties serve as not only punishment, but also as a deterrent against future criminal activity.
Unforgettable White Collar Crimes of 2024
Being labeled a “notable” or “unforgettable” white collar crime most likely means a lot of money was lost, a lot of people were victimized, a prominent individual committed the crime, or all three factors played into the crime. Some 2024 white collar crimes that will be discussed for some time include:
Samuel Bankman-Fried, aka SBF
Bankman-Fried, who was the founder of the cryptocurrency exchange FTX and the cryptocurrency trading firm Alameda Research, misappropriated billions of dollars of customer funds deposited with FTX, defrauded investors in FTX of more than $1.7 billion, and defrauded lenders to Alameda of more than $1.3 billion.
Bankman-Fried in fact channeled billions of dollars in customer deposits from FTX to Alameda, and then used those funds to make investments for his own benefit, to make political contributions, and to spend on real estate, among other expenditures.This equates to one of the largest financial fraud cases in history.
SBF was sentenced to 25 years in prison, three years of supervised release, and ordered to pay $11 billion in forfeiture for his part in multiple fraudulent schemes.
Mayoral Abuse
New York City mayor, Eric Adams was formally charged with bribery and campaign finance offenses in September of this year. It is alleged that Adams used his prominent position as the mayor of NYC to obtain illegal campaign contributions and luxury travel. Adams is said to have solicited and received these illegal funds from businessmen, foreign nationals, and others.
One major aspect of this case is Adams accepting bribes from a Turkish official who in exchange for luxury travel and donations to Adams campaign expected a new Turkish consular building in NYC to be opened without a fire inspection. Adams pressured the FDNY to open the building without an inspection and threatened to fire the FDNY fire safety official if it was not.
New Jersey Senator
New Jersey U.S. Senator Bob Menendez and his wife, Nadine, as well as three New Jersey businessmen were charged with bribery offenses this year. Menendez was introduced to a friend of Nadine’s, Wael Hana, who is originally from Egypt and kept close ties with Egyptian officials. In return for favors to the Egyptian government, Menendez and his wife were given cash, gold bars, a luxury convertible, home furnishings, mortgage payments and other things of value.
Menendez was found guilty of federal corruption charges and will be sentenced in 2025. The maximum sentencing for the charges Menendez was convicted on is 222 years, but some attorneys believe he could face 10 to 20 years in prison.
White collar crimes are taken very seriously by the Federal government and law enforcement agencies resulting in severe penalties for those charged. If you or someone you know has been accused of a white collar crime, you need to enlist the help of an experienced criminal defense attorney.
Contact the Law Offices of Robert J. DeGroot if you or someone you know has been accused of a white-collar crime!
