Corporate Crime: Types, Consequences, and Legislations in the UK

CRIME ESSAY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Facts........................................................................................................................................3
Criminal Liability of a Corporation........................................................................................4
Types of Corporate Crimes in United Kingdom and Various Governing Legislations.........5
Deferred Prosecution Agreements and How these Agreements Got Implemented...............9
Application of the Above Mentioned Laws on the Given Facts and their Consequences.....9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
A crime is an act or an omission which attracts legal punishment and is prohibited by the
law. Various authors have defined the word crime in their own terms. According to Blackburn
crime refers to “all those acts which attracts legal punishments and are offences against the
whole society.
It is a general perception that people who are less educated will be indulged in the
criminal activities. But in the present time many educated people are also committing crimes of
different nature. These crimes are generally related to gain some financial benefits. If the crime
has been committed by an educated person which is a financial crime in nature then it will be
known as White Collar Crime. These types of crimes basically involves where a person who
belong to the upper society tries to deceive the people for his personal financial gains (Akbar,
2019). The main aim behind these types of crime is to obtain money through committing fraud.
The Corporate Crime is one of the example of White collar crime where the management or the
directors of the company tries to deceive its investors by showing various false things about the
company for attracting more investors. The effects of the corporate crimes are far greater than

the traditional crimes such as theft, hurt etc. because corporate crimes directly make the negative
impact upon the economy of a country. It also affect the market as investors starts losing trust in
the market. In this report one fact based hypothetical problem will be discussed related to
corporate crime. It will also be discussed that how various legislations can be used to punish
people who are involved in these types of crime. The researcher will also focus upon the
aftermath results of these crimes upon the stakeholders of the company. (Bernat and Whyte,
2019).
MAIN BODY
Facts
The Rainbow Ltd is a company which was incorporated in UK in the year 2017. The
company was dealing in the telecommunications. The company has done certain manipulations
in the accounts and it has overstated its profit. Due to this the value of shares of this company got
increased. (Binder, 2016). These manipulations in the books of accounts of the company were
done in order to attract more investors. The chairman of the company Mr John was involved in
all these manipulations. This scandal was disclosed in 2019 and due to this disclosure most of its
investors lost their money. The employees of the company also faced certain financial and
mental issues. There were various evidences available such as misappropriated accounts of the
company which were sufficient to make the company criminally liable. It was also found that the
company was evading the tax since a long time and the guidelines issued by HMRC for the
prevention of tax evasion were not properly implemented. The company's accounts were also
audited in an inefficient manner (Bleustein, Kelleher and Zeitz-Winston, 2015).
In the further investigation it was found that there were no proper safety and health
measures for the employees of the company due to which Mr Fredrick, an employee of the
company died when he was discharging his duty in the scope of its employment.
Here the researcher will examine the above problem with the help of various legislations passed
by the Parliament of UK.
The researcher will try to focus upon various types of crime which a company can
commit for which it can be held criminally responsible.