Types Of Corporate Fraud

Corporate fraud is a clear example of “white-collar crime,” and it is more common in the United States than many people realize. Just as there are many different types of corporations, there are also many different types of corporate fraud. Although all corporate fraud is illegal, the specific type of fraud affects how organizations seek legal defense, and the various legal consequences they might face if convicted. This is why it’s important to become aware of the various types of corporate fraud if you are involved in the running of a corporation in Miami.

If your corporation is facing legal consequences for fraud or you have been defrauded by a company in Miami, you should get in touch with a qualified, experienced business litigation attorney as soon as possible. The good news is that there are many of these legal professionals located in Florida, and they can bring plenty of experience and resources to the table. With their assistance, you can strive for the best possible outcome.

Skimming 

One of the most common types of fraud you need to watch out for is “skimming,” which is also known as “asset misappropriation.” This can affect corporations in a highly negative manner, as it involves employees and corporate officers “taking a little off the top.” This can manifest in a number of different ways, and it can be quite easy to pull off. For example, a corporation’s employee could simply accept money from a customer and never record the transaction. 

Financial Statement Fraud 

Corporations are legally required to make accurate financial reports on a regular basis to the IRS. If you are caught intentionally altering certain numbers to benefit you or the corporation in some way, you will face considerable consequences. Some of the most common examples of financial statement fraud include altering sales numbers, misreporting revenues, and so on. Sometimes, corporate officers do this to increase bonuses or manipulate the value of stocks. 

Insurance Fraud 

Many companies today offer their employees health insurance, but this opens up the possibility of fraud. Employees can fake injuries and illnesses, filing false claims for their own financial benefit. Of course, this can take a major toll on the corporation, raising premiums and forcing owners to pay more out-of-pocket expenses as a result. Insurance fraud should be avoided at all costs. 

Bribery 

Bribery is particularly frowned upon in Florida and across the United States. Usually, bribery occurs when a public official is given payment for some kind of favor, but this crime can also occur within a corporation. For example, one board member might be bribed to vote in a particular way, or to support a particular decision. Kickbacks from certain projects may also constitute bribes.

Enlist the Help of a Qualified Attorney Today 

The dedicated Miami business & financial dispute lawyers at Alhalel Law are prepared to support you today with your case. Over the years, we have helped numerous organizations and entities with legal matters related to fraud, and we can guide you towards a favorable outcome in a highly efficient manner. Book your consultation today to learn more about your legal options.