Learn more about some of this year’s most notable white collar crimes from one of New Jersey’s most prominent voices in criminal defense, The Law Offices of Robert J. DeGroot.
What do you know about white collar crime in 2022?
White collar crime accounts for about 9% of the overall crime in our nation each year. Some think of it as a victimless crime, however it can be very destructive to everyone from the CEO of a company, to a grandparent buying a gift for their grandchild.
The FBI defines white collar crime as a non-violent crime committed by an individual or organization against a corporation, institution, or individual. Examples of white collar crime include: insider trading, money laundering, corporate fraud, mortgage fraud, intellectual property theft, and identity theft.
Although 90% of white collar crime goes unreported, and the prevalence of white collar crime is trending downward in recent years, there are still thousands of cases prosecuted each year.
Notable White Collar Crime Cases of 2022
Too good to be true
In November of this year, Elizabeth Holmes was sentenced to 11 years and 3 months in prison for defrauding investors in Theranos Inc. of hundreds of millions of dollars. Holmes claimed that her company, Theranos, had developed a revolutionary blood analyzer that could run any blood test that was run by conventional labs by a fingerstick blood sample rather than a vein draw. She also claimed that Theranos could do this more accurately and for less money than conventional labs.
Holmes knew her product was underperforming but told investors that the company had a revenue generating deal with the US Department of Defense, and projected $100 million in revenue when the company was worth less than $1 million.
The amount of money Elizabeth Holmes defrauded private investors of, both large and small, makes this case one of the most prolific of 2022.
Using a Cause to Live Lavishly
When natural disasters, pandemics, or emergencies happen, federal funding comes rushing in. Those looking to steal those federal funds also scramble close to the scene to see what they can take.
Such is the case of Aimee Bock, who along with 46 other suspects, defrauded a federally funded nutrition program of more than $250 million. Bock and her counterparts set up 250 fake Federal Child Nutrition Program sites in Minnesota shortly after the pandemic began and started serving up fake meals to no one.
Local catering companies and restaurants were encouraged to become sites for this federal program, but as part of the program mandates, they must be sponsored by another organization. This is where Bock’s Feeding Our Future company took over and collected federal funds and administrative funds for doing nothing.
Bock and her conspirators spent the millions of dollars they fraudulently obtained on cars, vacations, coastal resort properties, electronics and other extravagant items for themselves. They also will go down in history as having committed the largest theft of federal funds meant for pandemic aid thus far in the nation’s history.
Taking Over Your Persona
For the second year in a row, identity theft is the number one scam reported to the Federal Trade Commission by consumers in 2022. Identity theft means that someone other than you has obtained enough personal identifying information to take over your identity. Loans and credit cards in your name can be secured by the thief and can push you to financial ruin.
One notable case of identity theft in 2022 involves twin brothers who were part of a nationwide scheme where they gained access to over 2,000 AT&T mobile accounts, then charged millions of dollars of electronics purchases to the victim’s accounts. The brothers rented moving trucks to drive across the country and pick up the Apple devices they had fraudulently purchased.
The pair was stopped in their tracks in Ohio after leaving a car belonging to one of them in the parking lot of a retailer they had ripped off. Inside the car were 29 Apple iPhones, 11 Pro Max iPhones, six Apple iPad Pro tablets, three Apple watches, a firearm, other electronic devices and a passport.
The brothers are both on their way to spend 52 months in federal prison.
Remember, in the United States of America, everyone is innocent until proven guilty in a court of law!
If you or someone you know has been accused of a white collar crime, the Robert J. DeGroot Law Firm has the experience to represent you!
