Insider Trading And White Collar Crime

1477 words - 6 pages

There are many different forms of fraud, and one of the more interesting ones is insider trading. Insider trading like many other forms can involve big social networks, and small social networks. The corporate crime that is being committed is that a person or group of people misuses certain information, when they have an obligation to keep that specific information confidential. This can be effortlessly seen in examining the case involving insider trading and Dennis Levine and the Scandal that rocked Wall Street. In it, Levine makes use of his social network, by gaining inside information on mergers and acquisitions, or companies that may go under. 1 He uses this information, and would either buy stocks or sell them, in an effort to make money, before the public gets knowledge of the secret information. The crime is that he and others receive an unfair advantage in getting all of this information weeks or days before it happens, thus allowing them to act on it much before stockholders or the company can adjust, or make similar trades. This is considered a crime against corporation, CAC, because the Corporation 's stockholders didn't make any money, and the value of the company goes down. It is also strategically pre-planned, by a TLMT, in this case by the senior advisors of a few investment banks, and it also was pre-planned by middle level management teams. Levine relied on colleagues in other investment houses, on young lawyers, and members of the arbitrage community who player central roles in mergers and acquisitions. His success depended on these networks on Wall Street, but they could not be implemented by anyone but him. He was the one who could make the call to his Bank Leu, with an offshore account. At the same time, any of the middle level, such as those at Bank Leu could make similar trades and did, but they would be considered implemented by each person individually. So it was implemented by both TLMT, and MLMT's. Levine started off as a legitimate investment banker, for Citibank and wanted to use his position as a springboard to Wall Street. He met Bob Wilkis who introduced him to insider trading, back when they were considered "hot stock tips "and his $19,000 annual salary turned into $11.5 million over 7 years.The pattern of capital expropriation is fairly similar in many of the insider trading cases. There is a target company, whom the offender or Levine, has information on. He then must invest some capital, before he can expropriate anything. The way he goes about investing depends on what information he is given. Typically, news of a merger and acquisition would be given to him, maybe a week before, and he would then call his bank either a Swiss bank or one in the Bahamas, and order so many shares of the company. Once the information went public, later on, the value of his invested capital has risen a very significant percentage, and he was able to turn around and sell it, keeping all the profit as expropriated capital. Then the...

Find Another Essay On Insider Trading and White Collar Crime

White Collar Crime Essay

693 words - 3 pages The crime of choice for the businessperson seems to be white-collar corruption. Corporate corruption has been around since business was started but lately there has been a swell in business fraud and corruption prosecutions and investigations. Experts to demographic shifts and economic forces have accredited the changing character of crime. One problem with today's crimes is the advances in technology. The Internet is a major contributing factor

History of White Collar Crime Essay

2103 words - 8 pages , insurance fraud, mail fraud, government fraud, tax evasion, financial fraud, securities fraud, insider trading, bribery, kickbacks, counterfeiting, public corruption, money laundering, embezzlement, economic espionage and trade secret theft became the most commonly known white collar crimes. Then became two types of white collar crime: Occupational Crime that occurs when crimes are committed to promote personal interests. Examples of crimes

Penalties for White Collar Crime

1366 words - 5 pages caught. A look into the public’s perception on whether the penalties given is harsh enough for white collar criminals since most types of crimes have a set of standard penalties for those convicted. A standard set of penalties needs to be looked at for white collar crimes to help in eliminating the criminal behavior and saving society billions of dollars a year. Perception of Penalties White collar crime is viewed as non-violent and treated

White collar vs. street crime

655 words - 3 pages One problem that plagues our society is crime. Crime is all around us in our everyday lives. Daily we hear of murders, robberies, and rapes. These are categorized as 'street crimes.' For many people, such crimes are the only 'tragic' crimes, the ones that are senseless and preventable. In Finsterbusch's book, Taking Sides, another variety of crime is exposed. This other form of crime is 'white collar' crime. Both have victims, and the effects of

White Collar Crime in America

523 words - 2 pages law then a prosperous individual. Nevertheless, it is not our evil doing that we are regularly pushed to foresee this problem this way, especially not when it is the media, the government, and the media are the ones who painting this picture for us. In this universe we are surrounded by none ending crime, crime is broking down into two sections that have categories of their own those are street crime and white collar crime. Street crime is

Definition of White Collar Crime

1534 words - 6 pages White collar crime has many definitions, one of the earlier described it as illegal or unethical acts that violate fiduciary (holding or held in trust) responsibility of public trust committed by an individual or organization, usually during the course of legitimate occupational activity, by persons of high or respectable social status for personal or organizational gain. However, as time went on the definitions and variation of the crimes

White Collar Crime vs. Street Crime.

711 words - 3 pages manner just the same as street crimes. These crimes are called "white collar" crime. Both crimes affect victims in a serious manner, and the effects can be devastating to the individuals involved and to the community.Both street and white collar crime have severe consequences to all involved. In most instances, white collar crime takes a told on its victims financially. This isn't to be said that white collar crime does affect victims in other

The Tragedy of White-Collar Crime

1054 words - 4 pages assessed too many people retirement and investment is a shocking and alarming to the non-professional investor. When someone is in a legitimate occupation and committing, an illegal act is a white-collar crime. “To be more concise white - collar crime is define as any illegal act, punishable by a criminal sanction, that is committed in the courses of a legitimate occupation or pursuit by a corporation or by an otherwise respectable

White-Collar Crime in South Africa

1530 words - 7 pages It would be nearly impossible to find a South African who has not been affected by crime in one way or another. “White-collar crime,” a term first used by Edwin Sutherland in 1939, describes crime that is non-violent, but for the purpose of personal financial gain. This type of crime, including fraud and corruption, is becoming a greater problem in South Africa every year, and it is negatively affecting the country as a whole. Although they

Sutherland's Concept of White Collar Crime in the 21st Century

2227 words - 9 pages the development of the company (McGrath, n.d). Fraud can also have widespread or large scale impacts as it has been observed with insider trading scandals or stock fraud. A case in point is what happened in the United States in the 1980s when such scandals broke out and led to investors losing their faith in the stock market (Pontell, n.d). Another example of white collar crime is the Enron scandal which wiped out the retirement accounts of

The Rise of White Collar Crime: A Theoretical Perspective

994 words - 4 pages White Collar Crime is becoming a much bigger problem in today's society than it was in the past. Factors that contribute to the increase of white collar crimes include advances in technology, growth of the information age using computers and the internet, higher levels of education, and the fact that there is a greater emphasis on money and power in today's society than there has been in the past. Higher levels of education, coupled with the

Similar Essays

White Collar And Corporate Crime Essay

552 words - 2 pages Why does white collar and corporate crime tend to go undetected, Or if detected not prosecuted White collar and corporate crimes are crimes that many people do not associate with criminal activity. Yet the cost to the country due to corporate and white collar crime far exceeds that of “street” crime and benefit fraud. White collar and corporate crimes refer to crimes that take place within a business or institution and include everything from

White Collar Crime Essay

1102 words - 4 pages Today, worldwide, there are several thousands of crimes being committed. Some don’t necessarily require a lethal weapon but are associated with various types of sophisticated fraud, this also known as a white-collar crime. These crimes involve a few different methods that take place within a business setting. While ethical business practices add money to the bottom line, unethical practices are ultimately leading to business failure and

White Collar Crime Essay

2726 words - 11 pages Missing Works Cited In this paper the exciting criminal phenomenon known as white-collar crime will be discussed. Corporate Crime and Computer Crime will be discussed in detail. Crime preventative agencies such as the NCPC (National Crime Prevention Council) will also be researched. White Collar Crime The late Professor Edwin Sutherland coined the term white-collar crime about 1941. Sutherland defined white-collar crime as "a crime committed

White Collar Crime Essay

934 words - 4 pages Needs to be interesting, relevant and stimulate discussion amongst your peers.White collar and corporate crime. What is it? One of the definitions offered by Sutherland was that white collar crimes are criminal acts which are committed by workers within the course of their commercial activities; it is crime which takes place during the practice of legitimate occupation but not restricted by the actions of an individuals. So basically