Latest "white collar crime" Posts

White Collar Crime Infographic

Guest information regarding White Collar Crime.

White collar crime is as old as business itself, with the pioneers of the art form resorting to crude measures to bilk others out of their hard-earned currency. One of the earliest recorded white collar crimes on record included an importer who, after taking out a loan to acquire goods for sale, planned to fake a shipwreck and make off with the goods and money. Now, plans to steal money have only grown more sophisticated, with scammers coming up with new and innovative ways to part people from their money. With insider trading, kickbacks and money laundering marring the reputation of corporations both small and large, some are coming to associate Wall Street with organized fraud and unchecked corporate greed.

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Posted by Chuck Gallagher in white collar crime and tagged , ,

Barry Minkow faces Prison again! San Diego Community Bible Church defrauded

It’s often been said, “Once a criminal always a criminal.”  I disagree!  People make choices and some of them have very negative consequences.  I know I’ve made them and live with the consequences.  But, a bad choice doesn’t mean that one is bad.  Hum…in the case of Barry Minkow…well perhaps he’s an exception.  Certainly his actions would fully support what many think.

BARRY MINKOWFormer pastor and con man, Barry Minkow, age 48, was sentenced to five years in federal prison for stealing $3.5 million from his San Diego church and its members.  The tale of betrayal made the three-time felon one of the worst white-collar criminals according a federal judge.


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Posted by Chuck Gallagher in Church Fraud, Financial Fraud, fraud, Fraud Pure and Simple, prison, white collar crime and tagged , , , , , , ,

Not You Too, Ireland! Business Ethical Misconduct Blooms in Irish Politics and Real Estate

As you might surmise by my last name, I am not exactly neutral on the topic of Ireland. Every so often, I like to fantasize that the country of my great ancestors is above the ethical fray. I like to believe that while Ireland has its missteps (maybe a rascal stealing a chicken from Mrs. Murphy as a house pet), that the ethics1country is relatively free of ethical problems.  Yet business ethical misconduct is alive and well in Ireland.

Of course, I am making an intentionally naïve statement. With its growing economy and her position on the world financial and technology stage, in addition to her importance in agriculture and trade, Ireland has been subject to the very same ethical business pressures as every other free-world economy.

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Posted by Chuck Gallagher in Business and Personal Ethics, business ethics, Ethical Behavior, ethics, Political Ethics, politics, white collar crime and tagged , , , , ,

All that Gliters is not Ethical – Just ask Ingrid Lederhaas-Okun!

There is a fascinating story of greed unfolding about Ingrid Lederhaas-Okun, a vice president at Tiffany & Company who, according to the New York Daily News (July 2, 2013) allegedly, “…checked out over 165 pieces jewelry that went Ingrid Lederhaas-Okummissing, including numerous diamond bracelets, platinum or gold diamond drop and hoop earrings, platinum diamond rings, and platinum and diamond pendants.”

Using her husband and a friend as part of the scheme, her accomplices re-sold them to the missing jewelry to tune of $1.3 million. If convicted, she could be facing 20 or more years in jail. As the story is so new, it is difficult to pin-point all of the aspects of her motivation however, there are some lessons we are already being taught.

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Posted by Chuck Gallagher in Business and Personal Ethics, business ethics, white collar crime, You Gotta Be Kidding and tagged , , , , ,

Scott London at KPMG Charged With Insider Trading, Part II

Last week, we discussed the case of Scott London, KPMG’s Chief of Audit Practice, for their southwestern office.  Mr. London has been charged with insider trading violations for disclosing confidential information in regard to several of KPMG’s publicly traded companies…clearly a business ethics violation and an Scott London KPMGillegal act.  He told a friend things about those companies that were about to affect their stock prices. The friend then took the information before the general public knew and bought stock in the companies.

Over three years, the friend made more than $1 million trading on the information given to him by Mr. London and he, in turn, thanked the Chief of Audit Practice in the form of large bundles of $100 bills along with a Rolex watch and concert tickets valued in the tens of thousands of dollars.

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Posted by Chuck Gallagher in Business and Personal Ethics, business ethics, ethics, FBI, SEC, white collar crime and tagged , , , , , ,

Wyoming Official – John Johnson – Charged for White Collar Crime. Every Choice has a Consequence!

At every business ethics presentation I have been involved with as of late, I start with the statement that “every choice has a consequence”.  It is a fundamental truth that none of us can escape and for those caught in white collar crime – it’s a statement at the root of the consequences that inevitably must be faced.

White Collar CrimeIndeed, if there is one single message in the world of ethics, it is to be aware of your choices and accept that consequences – either good or bad – will follow from the choices you make.

Case in point is the recent story reported by the Associated Press in a Sheridan Wyoming online publication dated March 28, 2013 entitled: “Wyoming Official Charged for White-Collar Crime.”

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Posted by Chuck Gallagher in business ethics, ethics, Ethics - Political, Insider Trading, Political Ethics, securities fraud, white collar crime and tagged , , , , , ,

Kwame Kilpatrick’s Unethical Spiral…now Facing a Prison Sentence

“Power does not corrupt men; fools, however, if they get into a position of power, corrupt power.” George Bernard Shaw (1856-1950)

Though Bernard Shaw’s quote effectively denotes what happens to some men that come into power, it regrettably does not explain ….why? And as profound as the quote may be, I’m not sure he meant it to be expanded to include, greed, narcissism, moral turpitude, and sheer arrogance.

Kwame KilpatrickAgain the big question is…WHY? Studies performed by Dr. Joris Lammers at Tilburg University, in the Netherlands, and Adam Galinsky at Northwestern University, in Illinois, present a profound argument to explain eventual unethical conduct and immoral tendencies. They contend that people that “come into power” are not always motivated by the mere fact they can simply get away with it. Apparently, the study indicates that the rationale and justifications delve much deeper into the human psyche.

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Posted by Chuck Gallagher in business ethics, ethics, Financial Fraud, fraud, Fraud Pure and Simple, Political Ethics, prison, white collar crime and tagged , , , , , , , , ,

Business Ethics at Work – IBE Ethics and Work Survey – Comments by Chuck Gallagher Business Ethics Expert

First I reported on the KPMG survey from India and now the Institute of Business Ethics published their “at work survey” which shows similar results.  Lack of workplace ethics is rising due to the pressures from our worldwide current economic situation.  There’s nothing like a good recession to bring out the worst in folks!  By the way the full report on the IBE’s survey is found HERE.

According to the British Guardian:

right-wrongThe IBE’s ethics at work survey, which was last carried out in 2008, asks employees about their attitudes to ethical issues in the workplace, their perceptions regarding ethical practices in their organizations and what formal assistance on ethical matters their organizations provide for them.

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Posted by Chuck Gallagher in ethics, Ethics - Political, ethics training, New Website, white collar crime and tagged , , , , , , ,

KPMG India Fraud Survey – Patterns of Crime – Business Ethics and Fraud Prevention Expert Chuck Gallagher Comments

KPMG India

White Collar Crime up and Business Ethics Challenged?  Is that any surprise considering the vast changes in the world economy over the past four years?  With high profile cases like Bernie Madoff and a host of others, I have been asked multiple times if we reached a point where “White Collar Crime” may be on the decline.  My response is “heaven’s no!”  In fact, there are three components of an ethical lapse and the proliferation of “White Collar Crime” and NEED is at the top of the list!

When the Economy stinks NEED IS HIGH…

To my left is a graph from a KPMG India Fraud Survey – the entire report is found HERE.    In their report KPMG states that “White-collar crime in corporate India has witnessed a ‘substantial increase’ over the last two years.”

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Posted by Chuck Gallagher in ethics, Ethics - Political, ethics training, fraud, Fraud Pure and Simple, New Website, white collar crime and tagged , , , , ,

Ethics and Consequences: Lessons Learned in Strange Places

Ethics and consequences: Thinking back 11 years ago, I would never have considered that I, a competent, well educated man, would be sitting in prison. That was a life educational experience where I learned, really for the first time, that there are consequences to every unethical choice we make. Though one might think that we can avoid the consequences, the reality is that they are unavoidable and certain. We just don’t know how or when we will face the inevitable.

ethics and consequences

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Posted by Chuck Gallagher in Business and Personal Ethics, business ethics, Choices and Consequences, CPA, white collar crime and tagged , , , ,