White-Collar Crime: Legal Traditions, Laws, and Fraud Analysis

This assignment delves into the multifaceted world of white-collar crime, examining its legal underpinnings and practical applications. The assignment begins by exploring the legal traditions that shape our understanding of crime, differentiating between mala in se and mala prohibita, and outlining the principles of common law and due process. It then dissects the nature of criminal law, contrasting felonies, misdemeanors, and petty offenses, and differentiating between criminal and civil law, with a focus on the burden of proof in each context. The Fourth Amendment and its implications for search and seizure are also examined. The assignment further deconstructs fraud, distinguishing between criminal and civil fraud, and defining larceny and embezzlement. It then provides a detailed overview of various federal offenses, including conspiracy, mail fraud, wire fraud, access device fraud, embezzlement, check fraud, forgery, counterfeiting, false statements, computer fraud, and money laundering. Finally, it explains the differences between criminal, civil, and administrative forfeiture. The assignment provides basic examples for each concept, making it a comprehensive resource for understanding the legal and investigative aspects of white-collar crime.

ASSIGNMENT

Table of Contents
Part I...........................................................................................................................................3
The legal Tradition.................................................................................................................3
Part II..........................................................................................................................................4
The nature of criminal law.....................................................................................................4
Fraud Deconstructed..............................................................................................................5
Federal offence.......................................................................................................................7
Difference between criminal, civil and administrative forfeiture and when it is best to use
each........................................................................................................................................9
Part III......................................................................................................................................10
Basic Accounting Theories..................................................................................................10
Case Preparation, Evidence & Report Writing....................................................................11
References................................................................................................................................13

Part I
The legal Tradition
Mala in Se
Mala, in Se is referred as a plural form of malum in se which are criminal acts that are wrong
as these acts breach moral, public or natural principals of the society due to their inherent evil
character (Simbeye, 2017). Thus, the crime which is evil or wrong by its nature or
characteristic is considered as Mala in se. For example acts such as murder, torture,
kidnapping, theft or crimes which are against humanity are considered as Mala in Se.
Mala Prohibita
It is a Latin phrase which is applied to represent the action that constitutes unlawful conducts
only by virtue of statute i.e. it is an unlawful act because it is stated in constitution. For
example, it is necessary for US drivers to have a valid driver license (Cassella, 2018).
Further, in case an individual drive without a valid license then the specified act is wrong
because it is prohibited by law, not due to inherent evil character of the conduct. The acts
under this section are usually less severe in comparison to mala in se.
Common Law
Common Law comprises prosecution by states towards wrongful acts which are deemed to be
serious as they contravene the sovereign’s peace. All crimes committed in the United States
are punished as well as prosecuted at the state level to a significant extent. Higher crimes
which comprise rape, murder, robbery, burglary have similar laws. However, penalties
relating to same vary from state to state. Murder, rape, larceny, burglary, arson are considered
as felonies and intimidation of jurors, wrong imprisonment, assault are considered as
misdemeanours.
Due Process
Due process of the statute in government is referred to as a structural guarantee that conduct
of law will not affect a citizen in an abusive manner. For instance, the English Magna Carta
of 1215 specifies that no individual should be made to forfeit his / her rights, property except

by the law of the land as applied by the court. The due process clause represents the
enactment of right theory relating to the Declaration of Independence. Another example with
which due process can be explained is due process clause of United States Constitution which
deals with the management of justice and preserves from arbitrary denial of liberty, property
by a statute outside the sanction of law.
Part II
The nature of criminal law
(a) Felony
Crimes which are specified felonies are dependent on their nature as well as on the maximum
punishment which can be imposed on them. In cases of felony which is also referred to as
high crime, punishable by death or imprisonment over one year. Examples of felonies are
robbery, arson, white collar crime, rape etc.
(b) Misdemeanour
A misdemeanour can be referred to as misconduct which is specified as a lesser crime. The
punishment of conduct under this crime is imprisonment up to one year or a fine. The acts
which are covered under specified heading are traffic violations, simple assault, public
intoxication etc.
(c) Petty Offense
It is referred to as a minor crime for which punishment is a small fine or imprisonment for a
short span of time. Further, in order to assess whether it is in nature of the petty offence or
not, nature of the crime is assessed along with the assessment that whether the same is triable
by jury at common law or not.
(d) Criminal Law
The above-specified law comprises a system of legal rules relating to the criminal offence as
well as punishment and penalties relating to the same. It is the foundation of the criminal
justice system. The main sources of criminal law are: English and American common law,
State criminal codes, Federal criminal codes etc.
(e) Civil Law

Civil law is that part of the law which safeguards rather than public interest. Any legal
proceeding relating to civil law is brought by individual rather than state prosecutor. Civil
law is differentiated from criminal law through the fact that it safeguards the interest of
individual on a primary basis rather than interest of society. The examples of civil law are tort
law, family law, personal disputes and contract law.
(f) Burden of Proof (Criminal)
In a criminal case, the prosecution is required to prove the defendant’s guilt. Further, they are
requiring establishing the specified fact rather than a reasonable doubt due to a presumption
of innocence.
(g) The burden of Proof (Civil)
The burden of proving is on plaintiff through a preponderance of the evidence. It means that
the defendant does not require making any attempt to prove their point in case the plaintiff is
not able to prove their case.
(h) Fourth Amendment
The fourth amendment of the U.S. Constitution specifies the right of people to be secured in
terms of persons, papers, property against inappropriate search and seizures shall not be
violated. However, the same can be enacted upon probable cause through oath or affirmation.
An application of search warrant relies on hearsay information which comprises information
attained from confidential informant. In order to search particular asset or property it is
necessary for police authority to have reasonable cause that crime was committed and
connected to specified asset or property.
The pitfall which is considered in fourth amendment is that the items having evidential value
whose nature preclude them from being the object of a reasonable search and seizure is to be
assessed during the process relating to same.
A warrant can be referred as a legal authority to conduct an act which would be otherwise
illegal. Example: arrest warrant and search warrant. On the contrary subpoena is a writ issued
by government agency in order to compel a witness under a penalty for failure.

Fraud Deconstructed
Criminal fraud and civil fraud
Criminal fraud is a white-collar crime that comprises any action anticipated to mislead the
other person (Smith, 2017). If the person through the wrong representation of the facts and
data intend to deceive the other person who believes in the wrong information, then it is
regarded as criminal fraud. There are some critical factors, which are required to demonstrate
the criminal fraud, are described below –
 Falsification of the important information.
 The person already knows that the information is not correct.
 The intention is to deceive the other person.
 Other person relies on on that information.
 The results of beliefs lead to the damages to another person.
The criminal fraud presents in the distinct forms such as Wire Fraud, securities fraud, Mail
Fraud, insurance fraud, credit and debit card fraud etc.
If the person uses the credit or debit card of another person fraudulently and buys something
from that card, then it is considered as the criminal fraud. On the other hand, in case of civil
fraud, the case is conveyed to court by the person who was deceived, who has to give
evidence that the offender significantly falsified the information. It is essential in the civil
law, that claimant must suffer from the actual losses (Reurink, 2018). If the person obtains
the driving license by deliberately lying about age, then it is considered as civil fraud.
Larceny
Larceny is the criminal offence, which means acquiring the property of some other person
without their permission (Young, 2016). In order to prove larceny, there should be the
presence of some elements, which are described below –
 The illegal possession of the property.
 The property is related to another person.
 Without obtaining permission, the property is acquired.
 With the purpose of eternally deposes the proprietor of property.

If the person illegally knows the process of making coca cola, then it is considered as larceny.
Fraud
Fraud is referred to as the purposeful deception made with the intention of the personal profit
or damage to another person (Schuchter, & Levi, 2016). There are some elements which must
be present for evidence of fraud. Such elements are described below –
 Misrepresentation of the information.
 The information is material.
 The person who represents the information has knowledge about the wrong
information.
 The person intentionally represents the information in a manner, by which the other
person should be acted in a desired manner.
 The other party believes that information is correct.
 It results in loss to other party.
If the employee of any company misappropriates the business asset, such as making a
claim of false expenses, then it is considered as fraudulent activity.
Embezzlement
Embezzlement means, if the person illegally or fraudulently takes the personal property of
some other person to whom it was delegated then it is known as embezzlement.
(Steffensmeier, Harris, & Painter-Davis, 2015).
If the salesperson is charging more than the price decided by the employer and difference
amount used by him (salesperson), then it is regarded as embezzlement.
Federal offence
Conspiracy (18 USC 371)
This type of offence is a misdemeanour only as a penalty for such type of offences shall not
exceed the maximum penalty presented for such misdemeanour (Porter, 2017).
Mail Fraud (18 USC 1341)

The offences are guilty of a misdemeanour and shall be punished with the fine (Singh, Lyons
and Scudieri, 2017).
Wire Fraud (18 USC 1343)
It is a federal offence, and offensive parties are punishable for the imprisonment of 30 years
with a fine. In the case of a financial institution, the term of imprisonment is at least ten
years. Thus it is a misdemeanour offence (Boynton and Majestro, 2016).
Access Device Fraud (18 USC 1029)
This type of offences can be aMisdemeanour or felony. In the case when there is More than
$500, it is a felony of the third degree and above $50 but less than $500, it is a misdemeanour
of the first degree (Kerr, 2016).
Embezzlement (18 USC 656 et seq.)
A wrong happening such as theft, embezzlement, or misapplication by bank officer or
employee comes under this section, and the offences made in that are misdemeanour where
the quantity concerned is $50 or less (Ellis, Dow and Safavian, 2015).
Check fraud at the financially chartered institution (18 USC 1344)
The defence under the financial institution made the criminal tax charge under this section. A
felony, be supposed to be brought under 26 U.S.C more suitably. 7207, a misdemeanour, it is
the government's choice (Damato, Kettler and Singh, 2016).
Forgery (18 USC 510)
Wrong proceedings or forgery signature on a Treasury check or bond, which result in felony
or misdemeanour charges. The illegal act for forgery is a class of 4 felonies and is penalized
for 3.75 years in jail (Young, 2019).
Counterfeiting of U.S. Currency (18 USC 471–473)
For such criminal acts provisions of penalty which was made for 5 years changed into 1 year
to make a crime a misdemeanour (Hickman, 2017).
False Statements and Entries (18 USC 1001)
Under this section of false statement and entries, criminal shall be deemed guilty to be a
misdemeanour (Nagelberg, Lee, Rioux and Strong, 2017).

Fraud in connection with the use of computers (18 USC 1030)
criminal acts in connection with the use of computer charged for the imprisonment for more
than one year or fine is charged under the title 18 the higher of the, $100,000 for
misdemeanours and $250,000 for felonies or double amount of the loss or gain connected
with the crime (Levy, 2016).
Money laundering
Money laundering is the federal crime. The person involved in the money laundering shall be
punishable with the fine of $ 500000 or value of the property involved in the activity,
whichever is low or imprisonment for a period of maximum seven years or both.
Difference between criminal, civil and administrative forfeiture and when it is best to
use each
Forfeiture is personal conduct which requires the government to charge the property used or
imitative from the crime along with the defendant. In criminal forfeiture statue takes
property after attainment of conviction as defendant sentence (Holcomb, Williams, Hicks,
Kovandzic and Meitl, 2018) asserts that in case of civil forfeiture government requires to
present a preponderance of proof that the asset was applied to facilitate a crime (Tickner,
2017) stated that in case the criminal charge or conviction is not available civil forfeiture is
most appropriate. On the contrary criminal forfeiture should be applied in case of availability
of criminal charge. Administrative forfeiture is a remedial action which allows federal
seizing agency to forfeit the property with the involvement of judicial authority (Ehrlich,
2017). It is best to be applied in case of property which is prohibited for importation or a
monetary substance and any property whose value does not exceed $500000 in value.
Contract Fraud Investigation
Use of internet to conduct Contractor Fraud Investigation
Internet is applied to conduct Contractor Fraud Investigation in order to attain substantial
evidence or proof regarding fraud so that justice can be made.
List of parties which are excluded from federal procurement as well as non-
procurement programs

Section 9.404 of the code of federal regulation of the United States specifies the list of parties
which are excluded from federal procurement as well as non-procurement programs. It
comprises the names and address of contracts which have been debarred, suspended or
proposed to be debarred with cross-reference in case one is involved in more than single
conduct (Ashley, 2017)
Better business bureau Reliability Report database
The database of better business bureau provides detail of the companies which accomplishes
the accreditation standards which comprises commitment towards good faith efforts
regarding resolving consumer complaints (Pimentel, 2018).
State level laboratory listing database
State level laboratory database system develops a crime-lab system which has details
regarding violent crimes within states. These laboratories are operated by prosecutors or state
department of justice (Hair, Wolfinbarger, Money, Samouel and Page, 2015)
Offences for which contractor can be charged
The offenses for which contractors can be charged are fraud, false statement, inappropriate
mail etc.
Part III
Basic Accounting Theories
Assets are the items of the possessions that are owned by the business or an individual, For
example, building, investments, car, inventory etc.
Liability is the obligation of a person that arises in the course of business. Example- loans,
mortgages, accrued expenses etc.
The balance sheet is a statement of capital, liabilities, and assets of any business at a
particular point of time.
The income statement is the part of the financial statement that illustrates profits and losses
incurred at a particular period of time (Merkl-Davies, & Brennan, 2017).

Examples of financial instruments are cash and derivative instruments. Example of cash
instruments are securities, loans, and deposits and derivative instruments are assets, index,
and interest rates.
Treasury Enforcement Communications System is operated in US Department of homeland
security to control the proceedings of people during border ports of entry as well as for
migration enforcement case management (Battiston, Mandel, Monasterolo, Schütze and
Visentin, 2017).
A CTRs report is a report that is prepared by financial institutions of the US to manage all the
dealings that are engaged with the sum of money equal to or greater than $10,000.
The major purpose of CMIRs is making records concerning the collection of employment
taxes and individual income taxes.
CSNs major point is to offer effective and suitable services that help to achieve positive and
realizable results for every one implicated with the business (Bowling, and Sheptycki, 2015)
FBAs main purpose is to recognize precise target behaviour as well as to identify what
factors uphold the behaviour that is intrusive with the student's educational development.
The idea of a suspicious activity report is to notice the activities related to violation of law, by
financial institutions for the regulations.
Investigator normally acquires the customer’s bank accounts by the consent of their
customers. They have an ability to get hold of account information, details, bank records and
financial information.
Some examples of money laundering are smurfing and structuring, in smurfing small deposits
of money are made into accounts. (Kemeny, Hutchins, and Cooke, 2017).
Surveillance technique for financial services offers capabilities to fulfil the regulatory
responsibility by practically observing a huge degree of information for incriminating
confirmation of scoundrel trading (Brooks et al. 2017).
Case Preparation, Evidence & Report Writing
Chain of Custody and its importance
“Chain of custody is timelines of populace and units who have proof with them or had
control on some issue for a small time period. It is important because in case proofs have

been changed or are not proved that they are changed throughout the time between
compilations and use in court, in that case, proofs will be less realistic (Prayudi and Sn,
2015).
Public record
Public records are easily available as they are the records of public business. The
administration has some defined policies and terms that oversee the accessibility of facts
contained in public records. Example of the California Public Records Act (PRA) specifies
that except for convinced open exceptions, individual information should not be revealed in
absence of person’s approval.

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