While there are many kinds of fraud, there are certain amounts of fraud that can be difficult to catch and prevent. One of these kinds is known as corporate fraud. What exactly is this kind of crime?
Corporate fraud can be defined as a series of activities perpetrated by a company or an individual done in an illegal or dishonest manner. It also be described as an intentional misrepresentation of financial information to mislead the general public. The motivation behind these illegal activities is designed to give an unfair advantage to the company in question. Schemes that are done under the scope of a company go beyond just an employee’s position. The measure of the impact is defined by the economic impact on the business and whoever else may have conspired in the effort.
Corporate fraud can be conducted in a litany of ways, but it is most commonly done by taking advantage of information that is considered to be confidential. They also try to leverage assets that are considered sensitive. Then, all of this illegal activity is done under the illusion of business practices that are considered legitimate as a disguise. The most common explanations for these activities are to hide the business’ shortcomings in the form of delayed revenue, declining sales, huge net losses or huge expenses. This is done for the sake of maintaining a positive image for the business and not to turn off potential investors and purchasers.
Other motivations include misrepresenting a specific service or hiding potential defects and flaws. Instead of deciding to fix it internally through refurbishment or redesign, fraud is used as an attempt to hide these issues. It is commonly thought that a lack of financial means to fix the problem is what can cause companies to resort to illegal activity. If the company or individual makes the claim that funds put towards monetary reserves or other investments are actually being funneled elsewhere, this can also be considered a type of fraud.
Fraud in a corporate setting is considered to be a white-collar crime, which is a crime that involves illegal financial practices. A system of checks and balances is installed as a means to prevent the amount of illegal activity that a company can participate in. The desire is to prevent any and all illegal activity, but there are many businesses who utilize crafty, underhanded tactics to disobey the law. Through acts of deception, destruction of pertinent financial documents, and shrewd hiding of a company’s failures, fraud has become a prevalent practice in the United States.
Roy J. Kahn, with years of legal experience in a wide variety of criminal law, heads a “boutique” firm, which means that your attorney is Roy J. Kahn, not a paralegal. If you have been charged or are about to be charged with a crime—or if you have been contacted to be a witness in a federal grand jury case, you need a qualified defense. You should consult with an attorney immediately and know that you have a right to make no statement until you have consulted with an attorney To contact Mr. Kahn, he can be reached at 305-358-7400.
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