White collar crimes include those where offenders commit offences for financial gain. In Australia, white-collar crimes refer to non-violent financial crimes committed by individuals or businesses.
These can include:
- fraud including corporate fraud, mortgage fraud and tax fraud
- embezzlement
- insider trading
- bribery
- money laundering
- cybercrime, and
- various forms of corporate misconduct.
White collar crimes often involve deception, manipulation or abuse of position for financial gain. There are specific laws and regulations in Australia that address such offences.
White Collar Crimes Australia: Fraud
As we have explored, white-collar crimes in Australia encompass a diverse range of non-violent offences, typically centered around financial deception, manipulation, or abuse of power. These crimes often transpire within corporate or business settings, and their repercussions can reverberate throughout the economy, impacting individuals, businesses, and the overall societal trust in institutions.
One of the most prevalent white-collar crimes is fraud. It involves deceptive practices for personal or financial gain by white collar criminals. This includes falsifying documents, misrepresenting financial information, or forging signatures. Fraud can manifest in various forms, including insurance fraud, investment fraud, and identity theft. In Australia, legislative measures like the Criminal Code Act and the Corporations Act specifically address fraud-related offences, aiming to prosecute and deter such activities.
Embezzlement
Embezzlement is another significant white-collar criminal activity. It occurs when someone entrusted with funds or assets unlawfully appropriates them for personal use. This could involve a company executive siphoning funds from the corporate account or an employee manipulating accounting records to steal money. Australian laws, including provisions within the Crimes Act, impose penalties for embezzlement, reflecting the seriousness of such offences.
Insider Trading
Insider trading, a form of securities fraud, involves trading stocks or securities based on non-public, material information. Individuals with privileged information exploit it for personal financial gain, violating market fairness and investor confidence. Australian regulators, like the Australian Securities and Investments Commission (ASIC), monitor and enforce laws such as the Corporations Act to prevent and prosecute insider trading activities.
Bribery and Corruption
Bribery and corruption also fall within the realm of white-collar crimes. These offences involve offering, giving, receiving, or soliciting something of value to influence the actions of a person in a position of trust. The Australian legal framework, including the Criminal Code and anti-corruption laws, seeks to combat bribery and corruption within both public and private sectors.
Money Laundering
Money laundering, the process of concealing the origins of illegally obtained money, poses a significant challenge globally. Criminals seek to legitimise the proceeds of their illegal activities by integrating them into the financial system. Australia has legislation like the Anti-Money Laundering and Counter-Terrorism Financing Act, obligating financial institutions to implement measures to detect and prevent money laundering activities.
Cybercrime
Cybercrime has emerged as a prevalent form of white-collar crime, involving various illicit activities conducted through digital channels. This includes hacking, phishing, identity theft, and ransomware attacks. Australia’s Cybercrime Act and the Cyber Security Strategy aim to counter these threats, emphasising the importance of cybersecurity measures and collaborations to safeguard against digital crimes.
White Collar Crimes Case Study
In the case of Johnston v R [2017] NSWCCA 53, the applicant (Johnston) worked as senior accountant in a mining company (Newcrest Mining Limited). Johnston, in the span of 3 years, had prepared 156 false invoices that the company paid for to false accounts created by Johnston.
Under the Crimes Act 1900 (NSW), the applicant was charged with obtaining a financial advantage by deception (fraud) – this offence carries a maximum penalty of 10 years.
The sentencing judge imposed a sentence of 6 years and 6 months with a non-parole period of 4 years. Moreover, the court found that Johnston committed the fraud in order to feed his gambling addiction.
White Collar Crimes Example Scenario
In Sydney CBD, Sarah, a high-ranking executive at a prominent financial institution, faces pressure to meet aggressive quarterly targets. Fearing repercussions for missing goals, she devises a deceitful scheme. Sarah manipulates the accounting records, inflating the company’s revenue figures to meet the unrealistic expectations set by the board.
To do this, Sarah organises a complex web of falsified transactions, fabricating sales and overstating profits to create an illusion of financial success. Her actions breach the Corporations Act, violating accounting standards and regulations set by the Australian Securities and Investments Commission (ASIC).
As the quarter ends, the company reports record-breaking profits, delighting shareholders and stakeholders. However, suspicions arise among the company’s compliance team, who notice discrepancies in the financial reports during an internal audit. An investigation uncovers Sarah’s fraudulent activities.
Subsequently, Sarah faces severe legal consequences for her white-collar crime. Prosecutors build a case against her, charging her with multiple counts of fraud and breaching financial regulations. She now faces the reality of imprisonment and a permanent stain on her career.
Seek Advice from Criminal Lawyers
White-collar crimes in Australia encompass a spectrum of offences that undermine financial integrity, erode trust, and impact both individuals and institutions.
The legal framework in Australia, law enforcement agencies and the Australian Federal Police (AFP) continually evolve to combat these offences and criminal conduct, emphasising prevention, enforcement, and penalties to deter such activities and uphold the integrity of the financial system.
Contact our team for more information.
