White-collar crimes in the financial sector include corporate and securities fraud. Corporate fraud encompasses embezzlement, internal theft, payoffs, kickbacks, and skimming. Securities fraud consists of internet fraud, boiler rooms and microcap schemes, Ponzi schemes, and illegal insider trading where individuals use privileged information not available to the public to profit in the stock market. Government agencies that investigate these crimes include the FBI and Securities and Exchange Commission in the US and the CBI and SEC in India.

1. FINANCIAL SERVICES
WHITE-COLLAR CRIMES AND
FINANCIAL FRAUD

2. White-Collar Crime
• Fraud, non-violent
• typically for financial gain
• Investigating bodies include FBI,
Securities and Exchange Commission
• In India the CBI and SEC
• 2 Types: Corporate fraud and
Securities fraud

3. Corporate fraud
• Embezzlement, also called larceny
• Internal theft
• Payoffs and kickbacks
• Skimming

4. Securities fraud
• Internet fraud
• Boiler rooms and Microcap fraud
• 'Ponzi Schemes‘
• Insider Trading

5. Illegal Insider Trading
Examples
• A lawyer …
• A board member …
• A government employee …
• A high-level employee of a company …