What are some forms of Corporate Fraud?
Corporate fraud is the compilation of activities of an individual, or a company, that are dishonest or illegal in nature, that seek an absolute advantage for the perpetrators. Corporate fraud is notorious due to the complexity and economic impact it can have on other markets and businesses. The most common form of corporate fraud is the theft of confidential information and sensitive assets and the leveraging those assets for personal gain.
In general, fraud is disguised as legitimate business tactics. Dishonest or fraudulent actions are taken to mask shortcomings such as net loss, declining sales, or great expenses. Falsified accounting is generally done to make a company seem more attractive to potential buyers as well as investors.
Another form of fraud is the misrepresentation of services and products. In these cases, a company works hard to hide the flaws and defects of their products rather than spending the time and money in the reparation and refurbishment of the product. Sometimes, a company or an individual will claim that certain funds are being directed toward investments or reserves that are intended to elevate in value, but in reality, the funds are diverted elsewhere.
An example of deceptive accounting can be seen in the fall of Enron. Because of loopholes and other deceptive tactics, the company was able to hide debt that was in the billions of dollars. To maintain the venture, the perpetrators pressured auditors to hide incriminating materials by destroying financial documents.
What are some of the penalties if an individual is brought up on corporate fraud charges?
The state of Florida is comparably severe on fraud-related offenses. In the state of Florida, organized fraud is a felony and can be charged alongside federal crimes such as wire fraud, and mail fraud. If an individual is charged with mail or wire fraud, they can face up to thirty years in prison as well as fines up to one million dollars.
Specifically in the state of Florida, if an individual is found guilty of fraud, they face up to thirty years, or life in prison, as well as fines up to fifteen thousand dollars. Finally, the state of Florida allows the victims of fraud cases to seek complete restitution for their losses.