A record-breaking insider trading case is now on trial in New York. A money manager made $50 million on a single trade, which prosecutors said was based on insider trading. The money manager traded Dell stock for a hedge fund after learning that the stock was going to drop. The money manager’s attorney says that the information came from an analyst who was trusted, and that the size of the trade was not inconsistent with other actions taken in the past.
This case is an example of a white collar crime. White collar crimes are typically crimes that are motivated by money and are nonviolent. They are usually committed for financial gain. There are many, many white collar crimes, and they can be both state and federal crimes.
Some typical examples of white collar crimes include fraud, Ponzi schemes, bribery, insider trading, embezzlement, forgery, identity theft and money laundering. Although many people who think of white collar crimes picture the punishment as a short sentence in a fairly nice federal prison, that’s not always the case. The sentences can be long, and in addition to prison other sentences can include fines, restitution, probation, community service, and more. The sentence typically depends on the severity of the crime and the amount of money involved.
White collar crimes usually are very complex, and the investigation can take years. It’s important to bring a highly skilled and experienced white collar crimes attorney in at the beginning, before allowing yourself to be questioned by police or cooperating with the investigation. Mistakes that are made early on can be hard to correct later.