What are some examples of business fraud crimes?

On Behalf of | Sep 10, 2021 | Firm News

Business professionals in the Greater Boston area are often given responsibilities that require them to act in good faith and exercise due diligence. Sometimes, though, a business official may be accused of committing a fraud crime. This can be distressing if you did not mean to cause a crime or if it is the first time you are facing the criminal justice system.

Federal law recognizes a variety of white-collar fraud crimes. Having a basic understanding of these crimes can help those accused of committing one. With the right help and knowledge, you can develop a strong defense strategy. The following are common types of fraud crimes a businessperson may knowingly or unintentionally commit.

The non-delivery of goods

One white-collar fraud crime is the non-delivery of goods. This occurs when one party pays for the goods ordered, but the goods are intentionally never delivered. For example, a business may place an order for widgets with another business.

The business pays for these widgets but then the widgets are never sent to them on purpose. This constitutes a fraud crime if the party responsible for sending the widgets places the order and accepts payment without ever intending to send said widgets.

The non-payment of funds

Another type of fraud crime is the non-payment of funds. This occurs when goods are shipped to a business, but the agreed-upon payments for the goods are never sent. The non-payment of funds is similar to the non-delivery of goods.

For example, a business may place an order for widgets with another business. This time, however, the aggrieved party sends the widgets, but the party receiving the widgets purposely does not pay for them.

Overpayment schemes

A third type of fraud crime is an overpayment scheme. This occurs when a person receives a payment that is more than the amount owed and is told to deposit the funds in a bank account, and then wire the excess funds back to the person who sent them. The fraud often occurs after the wire transfer is complete.

Re-shipping schemes

Finally, there are re-shipping schemes. These occur when a person is chosen to receive goods at their home and then repackage them and ship them elsewhere, usually somewhere out of the country. However, the person recruited to receive these goods and reship them does not know that the goods were purchased with a fraudulent credit card that was opened using their name.

Take action if accused of business fraud

This list of business fraud crimes is not all-exhaustive. There are other types of business fraud crimes a person may be accused of committing. If you are accused of committing a business fraud crime or other white-collar crime you may be very concerned about your future.

You may fear losing your job and facing fines and even jail time if you are convicted of such crimes. However, with a solid defense strategy you may be able to fight these charges to preserve your rights and reputation.