White Collar Crimes: Zainub, Sip54 Btech Cs + Cyber Laws UPES VTH Year

WHITE COLLAR CRIMES
ZAINUB, SIP54
BTECH CS + CYBER LAWS
UPES Vth year
WHITE COLLAR CRIMES
• “A person of upper Socio-economic
class who violates the criminal law in
course of occupational or professional
activities.”
Professor Sutherland
• crimes committed by upper-class men

in the course of their business or
professional activities.
• An illegal act committed to achieve an
illegal goal.
1. illicit gain
2. avoid paying legal or formal fees,
3. withholding money or property, etc.
• includes criminal and civil law violations.
Conventional crimes such as theft, break-in, arson, etc. are much less than
the loss from white-collar crime, affect our country's trade and economy,
and also lead to a loss of investor confidence in the market.
CLASSIFICATION OF WHITE COLLAR
CRIMES-
1. Ad hoc crime: perpetrator pursues his / her individual goal without interacting
with the victim personally ex. credit card fraud, hacking etc.
2. Bribery: When money, goods, services or information of any kind are offered to
support the acts Influencing the policyholder's opinions and decisions is considered
bribery.
3. Embezzlement: When a person who has been authorized with money or property
uses it for their own purpose.
4.Counterfeiting: Copies or imitates an item without being authorized to do so.
5. Forgery: When a person licences any counterfeit instruments such as a
check etc .
6.Tax evasion: Often used by the middle class for unaccountable income.
7.Professional crime: offenses committed by doctors and lawyers in the
course of their profession.
8. Fraud : willful deception for personal gain or harm to another person or
organization. it is illustrated in both the Criminal Code and the Civil Code.
“FRAUS OMNIA VITIATE” - “Fraud violates everything”
• Types of corporate fraud

• Fraud is defined under-
1. Fraudulent financial statements 2.
1. Indian Contract Act, 1872
Employee fraud
2. Indian Penal Code, 1860
3. Supplier fraud
4.Customer fraud
5.Investment fraud
6.Bankruptcy fraud
7.Asset appropriation
8. Corruption
CASE- EAST INDIA COMPANY
• Trading company licensed by the Crown and gent of the Crown.
• Commissioned to help the British state economically and politically. It was the first
multinational in the world to pursue both investment opportunities and territorial power.
• The India-based EIC employees sought commercial profit for themselves, the Crown and the
East India House; While aggressively acquiring Indian territory on behalf of the Empire. In the
late 1700s, Edmund Burke had Robert Clive (the founder of the Empire) and Warren Hastings
(Governor General of India) indicted for political impeachment with corruption issues.
• Trail couldn't judge anyone. To achieve all of these goals, EIC's corporate behavior was
inconsistent. Sometimes the company followed ethical safety and financial practices.
• Sometimes it was easy to commit financial theft and bribery, or violate civil liberties and
human rights.The concept of corporate social responsibility was subordinate to his interests.
• The company was subsequently dissolved under the East India Company's share buyback act.
FIRST INDEPENDENT INDIAN CASE- MUNDHRA
SCAM
• Haridas Mundhra, an industrialist and stock speculator, sold fabricated stocks to

the Life Insurance Corporation (LIC)
• defrauded LIC for 125 million .
• Mr. Jawahar Lal Nehru (then Prime Minister) set up a one-man commission
headed by Judge Chagla Judge Chagla closed the matter.
• Haridas was found guilty and sentenced to 22 years in prison and T.
Krishnamachari, then Minister of Finance, resigned from his office.
ENRON SCAM
• Enron corporation is an American energy company
based in Houston, Texas.
• On October 16, 2001 - The third quarter loss was
posted at $ 618 million and then $ 1.2 billion in stocks
was withdrawn.
• October 31, 2001: The SEC updates the investigation
to a formal investigation.
• on December 2, 2001: Enron filed for Bankruptcy.
• 4,000 employees were sacked, 20,000 workers lost
their jobs and $73 billion was lost in the stock value.
• Enron's management used complex and
seedy accounting schemes to reduce Enron's
tax payments,
• to increase Enron's income and profits,
• to increase Enron's share price and
creditworthiness,
• to hide losses at off-balance sheet
subsidiaries,
• to create an off-balance sheet plan design to
channel money for themselves, friends and
family.
• To fraudulently misrepresent Enron's
financial condition in a public report
SATYAM SCAM-2009
• Biggest scam in Indian history.
• Chairman Ramalinga Raju has tampered with the financial statements and accounting books.
• Over declared assets of Rs 490 crore.
• Counterfeit cash balance greater than Rs 5000 crore on the balance sheet.
• Rs 376 million interest component that never went into the company's coffers.
• Unspoken liabilities of Rs 1,230 crore.
• Chairman, Managing Director, Chief Executive Officer and Chief Finance Officer and the Key
Managerial Personal got arrested.
• audit firm partners also arrested.
• People in Satyam lost a staggering Rs 100,000 crore in market cap as investors reacted sharply
and dumped the shares, pushing the stock down 78% to Rs 39.98 on Bombay.
HARSHAD MEHTA CASE
• Came as a biggest shock in Indian history.
• Harshad Mehta received forged bank receipts from small
banks, which were transferred to other banks as collateral
for cash.
• This money was used to drive up stock prices on the
stock market. broken bank receipts were busted.
• Drastic impact on the stock market, economy and
progress of the country.
• The banking system was cheated of whopping 5 billion
rupees .
• Even the chairman of one of the banks committed
suicide.
LEGISLATIONS-
• Indian Contract Act[13] (Section-17)
• Indian Penal Code[14] (section-25)
• Prevention of Corruption Act[15]
• Prevention of Money Laundering Act[16]
• The Companies Act[17]
• Clause 49 of Listing Agreement
• Securities and Exchange Board of India Act[18]
• CARO Act[19]
• Essential Commodities Act[20] (Section-6)
• Information Technologies Act[21] (Section 43-44)
• With the advancement in technology and personal greed increasing day-by-day.
some are not even addressed.
• responsible for economic loss of country also.
THANKYOU...

White Collar Crimes: Zainub, Sip54 Btech Cs + Cyber Laws UPES VTH Year

Uploaded by

Copyright:

Available Formats

White Collar Crimes: Zainub, Sip54 Btech Cs + Cyber Laws UPES VTH Year

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

White Collar Crimes: Zainub, Sip54 Btech Cs + Cyber Laws UPES VTH Year

Uploaded by

Copyright:

Available Formats

WHITE COLLAR CRIMES

• crimes committed by upper-class men

• includes criminal and civil law violations.

• Types of corporate fraud

• Haridas Mundhra, an industrialist and stock speculator, sold fabricated stocks to

You might also like