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What White Collar Crimes Are Common in Massachusetts?

Posted on : December 30, 2019, By:  Tom Kokonowski, Esq.
Massachusetts white collar crimes

Review the most common Massachusetts white-collar crimes

Find out what you should do to reduce your chances of receiving a guilty verdict after you’ve been charged. 

Ponzi Schemes 

Ponzi schemes are named after a famous conman from the 1920s named Charles Ponzi. This type of fraud uses new money from new investors to pay existing investors instead of investors receiving a portion of company profits from sales or services. Ponzi schemes typically fall apart when no new investors are putting funding into the company. 

Embezzling 

Embezzlement occurs when a person, usually an employee or manager within a company, uses their position to misappropriate funds that they control. For example, an employee may discover a way to funnel small amounts of money to their own personal bank account without being caught. Or a politician may misappropriate campaign funds by using them to pay for personal expenses. 

Fraudulent Bankruptcy 

When a company files for bankruptcy and attempts to conceal assets or property to avoid giving them up to the bankruptcy court, this is considered bankruptcy fraud. The court can only liquidate non-exempt or non-essential assets, and the remaining debt is discharged or forgiven. When a business misrepresents their property or assets, debt that they have the means to pay is discharged, which ultimately amounts to theft. 

Corporate Fraud 

Corporate theft is a catch-all term that includes many white-collar crimes such as insider trading or falsifying financial information. Many corporate fraud cases involve the use of accounting schemes designed to deceive people who have invested in a company about its financial status. A person within the business will falsify performance data, attracting new investors who think the company is more valuable. 

Blackmail

Blackmail is a type of extortion that involves the threat of exposing embarassing or harmful information about an individual or business entity to person(s) that could use said information in a damaging way. Extortion as a whole is a felony, and also includes any type of force or threat of violence, slander, or property damage to gain money. 

Charged with White Collar Crime? Call a Massachusetts Defense Lawyer Today 

If you were arrested for one of the above white collar crimes, or any other charge, it’s critical that you get legal help as soon as possible. Your lawyer can help you develop strategic legal defenses, such as entrapment or lack of criminal intent. Contact Thomas Kokownowski today for a consultation by calling 413-737-9700.