Fraud is one of the most common white-collar criminal offenses. That category of crime takes its name from the professionals most associated with this type of criminal activity. White-collar criminal offenses typically involve financial misconduct or inappropriate behavior during business dealings.
Fraud charges may result from inappropriate billing practices or intentional misrepresentation of a company’s value to investors. Professionals in a variety of industries could be at risk of fraud allegations depending on their professional conduct. What types of fraud are among the most common criminal allegations brought against professionals?
Securities fraud
Securities fraud involves manipulating the stock market or other securities for personal financial gain. It typically involves professionals who work in finance or investing. A pump-and-dump scheme could fall into this category of fraud.
By conducting a guerrilla marketing campaign online, those who already hold an interest in an investment can drum up attention and demand. They can then sell their investment at a premium rate to investors who are likely to take losses because the value of the investment doesn’t have any real-world backing other than digital hype.
Health care fraud
Often, health care fraud involves insurance fraud. Sometimes, individual patients try to secure coverage for which they are not technically eligible.
Frequently, however, health care fraud involving insurance comes from providers and their support staff. Inappropriate billing practices that violate the law or the contract with an insurance program can lead to allegations of fraudulent billing.
Insurance fraud
Insurance fraud may involve covered individuals seeking inappropriate benefits and making false claims. It can also involve professionals seeking payment from insurance in a fraudulent manner.
Companies providing repair services for damaged vehicles or homes could engage in insurance fraud by overcharging the company. In some cases, people stage fake accidents or cause car crashes to file a claim against another motorist’s policy. Such conduct increases what everyone pays for coverage and puts professionals at risk of criminal charges.
Professionals facing white-collar criminal charges, including fraud allegations, often need help exonerating themselves. Reviewing the evidence, changing the narrative around the situation and responding appropriately to pending charges can help successful professionals avoid the lasting consequences of a fraud conviction.