White Collar Crimes Articles

Former Pastor Ordered to Pay $1.4 Million in Securities Fraud Case

A former pastor from Colorado Springs has been ordered to pay $1.4 million and serve 15 years' probation for his role in a scam that defrauded investors of more than $12 million.

Securities Fraud Lawsuits

Read about some prominent securities fraud cases – including those involving Adelphia, iVillage, Global Crossing, and InfoSpace - that have been in the news.

WorldCom Fraud

Executives at telecommunications giant WorldCom perpetrated accounting fraud that led to the largest bankruptcy in history. The fraud was revealed to the public in June 2002 and WorldCom filed for bankruptcy in July 2002.

Wachovia

Wachovia offers banking and investment services to individuals and businesses. When Wachovia purchased Corporate Securities Group it inherited a dispute between the investment group and one of its former clients, which led to a securities fraud lawsuit being filed against the group.

UBS Warburg

The Swiss company UBS Warburg merged with PaineWebber in 2000 in an effort to enter into the US investment market. The company was one of ten firms targeted for securities fraud in recent investigations by the New York Attorney General, SEC, NASD, and other federal regulators.

Tyco Fraud

Tyco manufactures a wide variety of products, from electronic components to healthcare products. During 2002, the Securities and Exchange Commission began an investigation of Tyco's top executives. Inquiries into the accuracy of the company's books began in January.

U.S. Bancorp Piper Jaffray

U.S. Bancorp Piper Jaffray was one of ten firms that settled in April of 2003 with the Securities Exchange Commission and other federal regulators. This was not the first regulatory action taken against Piper Jaffray. It was preceded by a number of other fines for violations on the part of the firm.

Salomon Smith Barney

Salomon Smith Barney is the investment banking division of Citigroup. Investigations that focused on the integrity of Smith Barney’s telecom ratings were launched, resulting in a $400 million securities fraud settlement.

Morgan Stanley

Morgan Stanley finalized two settlements with regulators of the securities industry. In December of 2002 Morgan Stanley was fined $1.65 million, and in April of 2003 it agreed to a separate $125 million securities fraud settlement.

Merrill Lynch

The bullish ratings given by Merrill Lynch analysts to floundering Internet companies led Eliot Spitzer, New York’s Attorney General, to suspect the company of securities fraud.

Lehman Brothers

During recent investigations into the reliability of Lehman Brothers’ stock ratings, emails were found that recorded analysts acknowledging inconsistencies between their ratings and the values of the companies they were evaluating.

Knight Trading Group

Knight Trading Group serves investors by acting as a vehicle through which trades are made. The Knight shareholder class action suit alleges that the company was involved in a front-running scheme.

J.P. Morgan Chase & Co.

J.P. Morgan was fined $80 million by the SEC and other regulating agencies in April of 2003. The fine was one of ten that were issued as a measure to reform the securities industry.

Goldman Sachs

Goldman Sachs is a major investment banking firm that operates across the world. Allegations against Goldman Sachs have focused on the company's practice of 'laddering' public offerings.

Enron Fraud

It was one of the largest securities fraud scandals in history, and the investigation into the extent of the fraud committed by Enron is still ongoing. As a result, Enron was forced to file for bankruptcy in December 2001.

Deutsche Bank

Deutsche Bank was founded in Berlin in 1870, and is presently the largest bank operating under the euro. In Germany Deutsche Bank’s CEO has faced breach of trust charges from the United States.

Credit Suisse First Boston

Credit Suisse First Boston (CSFB) is an investment banking unit of Credit Suisse Group, a financial services company that operates worldwide. In 2000, the Securities and Exchange Commission investigated the company on securities fraud charges.

Charles Schwab

Charles Schwab, the discount brokerage firm known for its commitment to maintaining credibility, weathered investigations into brokerage firm reliability with relatively few counts against it.

Bear, Stearns & Co

Bear Stearns is a global investment banking/brokerage firm that recently paid two major fees, one to settle securities fraud charges filed against it in 1999, and another in 2002 to end investigations by the SEC and partnering regulatory entities.

Alliance Capital Management

A lawsuit was filed against Alliance Capital Management by Florida’s State Board of Administration (SBA) in response to a $334 million loss Florida’s pension plan suffered under Alliance’s financial management.

Securities Fraud Lawsuits

Securities fraud lawsuits can be waged against an individual and/or an entire company for a number of reasons. Learn more about securities fraud lawsuits and read about cases that have been in the news.

Securities Fraud Glossary

Read the definitions of terms relating to securities fraud in LawyerShop's securities fraud glossary.

The SEC

The SEC (Securities and Exchange Commission) was established in 1934 to act as a federal check on investment markets.

Securities Fraud FAQs

Securities fraud is an act committed by an entity intending to manipulate the market through deliberate concealment, or distortion of information. The SEC (Securities and Exchange Commission) acts to regulate against securities fraud by enforcing investment acts and laws.

Investment/Brokerage Fraud

Investment fraud (also known as brokerage fraud) occurs when an advisor, stockbroker, or brokerage firm offers inaccurate, incomplete, or biased information in an effort to control the market or draw business.

Corporate/Shareholder Fraud

Corporate fraud, also known as shareholder fraud, occurs when, to maintain this front, corporations deliberately conceal or skew information.

Securities Fraud

Securities fraud is an act committed by an entity intending to manipulate the market through deliberate concealment, or distortion of information. If you have been charged with securities fraud, it is important to contact attorneys in your state as soon as possible. Securities fraud lawyers can defend your rights.

Trade Secret Theft

According to the Economic Espionage Act of 1996, a trade secret is any confidential plan, formula, pattern, program device, technique, code, or collection of information that, once released, could potentially benefit a business.

Telemarketing Fraud

Telemarketing fraud is any scheme that uses telephone contact to deceitfully divest its victims of money or property. The oldest types of telemarketing fraud are scams to which almost everyone has been exposed, such as programs to earn money from home and prize offers or sweepstakes.

Tax Evasion

Tax evasion is the intentional and illegal avoidance of paying mandatory taxes to the government. For every form of taxation, there is a method for tax evasion.

Public Corruption

Public corruption is the violation of a public official’s duty of faith toward his or her community. A judge’s ruling, a legislator’s vote, a bureaucrat’s contract for work – each of these is susceptible to public corruption.

Money Laundering

Money laundering is the act of hiding the source and/or destination of illegally obtained funds. Perpetrators attempt to make it appear as though illegally obtained funds originated through a legitimate transaction.

Mail Fraud

Mail fraud is the attempt to commit some type of fraud by using the United States Postal Service (USPS) or any private or commercial interstate mail carrier. Punishment for these types of crimes can result in heavy fines and lengthy prison sentences.

Insurance Fraud

Insurance fraud refers to false claims made to an insurance company, as well as phony injury and property damage claims made so claimants can obtain more compensation.

Insider Trading

Insider trading involves the use of nonpublic information in making a securities transactions or the distribution of such information for the purpose of influencing a transaction.

Identity Theft

Identity theft is a crime that involves one person appropriating the personal information of another in order to commit fraud. Identity theft is a felony, and thieves face heavy penalties if caught.

Healthcare Fraud

Healthcare fraud is the misstatement of facts – either knowingly or through unreasonable ignorance – that leads to unfair profit through medical coverage. Government agencies are constantly taking steps to try to combat healthcare fraud.

Government Fraud

Government fraud is a serious crime refers to illegal acts that intentionally divest the government of funds through deception or scams. The most common types are procurement fraud, false claims and statements, and healthcare fraud.

Financial Crimes

White collar, or financial, crimes are nonviolent in nature and are committed in commercial situations by individuals, groups, or corporations for financial gain.

Environmental Law Violations

Environmental crime refers to the violation of laws intended to protect the environment and human health. Violators of environmental law are usually hit with criminal fines, probation, jail time, or a combination of these punishments.

Embezzlement

Embezzlers come into possession of property legally, but fraudulently assume rights to it. Examples of embezzlement include smaller thefts, such as stealing from the company's petty cash box, or large thefts that can cost a company millions of dollars.

Credit Card Fraud

Credit card fraud is one of the most frequently committed types of white collar crime and can be perpetrated by individuals as well as crime rings.

Counterfeiting

Counterfeiting is the act of manufacturing fake or altering genuine currency. Possession of printed reproductions of federal currency, postage stamps, or U.S. securities is punishable by fine and/or up to 15 years in prison.

Computer and Internet Fraud

Computer fraud, or Internet fraud, is the use of a computer to conduct illegal activity and the targeting of a computer with the intent to alter, damage, or disable it.

Bribery

Bribes are payments or other types of compensation made in order to influence and gain profit from an individual or company. Individuals and companies use kickbacks to gain an unearned advantage, benefit, or opportunity against others.

Bankruptcy Fraud

When a debtor falsely claims bankruptcy, attempts to conceal his assets, launches petition mills, or files multiple claims, he is committing bankruptcy fraud - a federal offense that can lead to a $250,000 fine and up to five years in prison.

Antitrust Law Violations

Antitrust laws are meant to protect competition in the marketplace. Violations of these laws hurt competition, cause an increase in consumer prices, and can potentially damage the economy.

White Collar Crime

Learn about the types of crimes that constitute "white collar" criminal cases, including embezzlement, fraud, extortion, bribery, and more. If you have been accused of a white collar crime, contact an attorney as soon as possible.

Supreme Court Declines to Hear Appeal from Former Enron Investors

The U.S. Supreme Court has rejected the appeal of a $40 billion lawsuit filed by former Enron investors against Wall Street investment banks that lent money to the now-disbanded corporation.

Oregon Pastor Found Guilty on 32 Fraud Counts Sentenced to Eight Years

Sandy, Oregon pastor Corey Jerry Pritchett, who was found guilty of 32 counts of fraud in November 2007, was sentenced to serve seven years and 10 months in prison in Multnomah County Circuit Court Wednesday.

Apollo Group Liable For Up To $277.5 Million After Losing Suit

Apollo Group Inc., parent corporation of the University of Phoenix, the largest for-profit school in the U.S., must pay up to $277.5 million in damages after losing a securities-fraud lawsuit brought by shareholders.