White-collar crime charges result in hefty penalties

On Behalf of | Apr 28, 2020 | Criminal Defense, White Collar Crimes |

White-collar crimes are treated very seriously by prosecutors and the courts in New York. These allegations can lead to severe penalties including hefty fines, loss of licensing and incarceration. A recent case in which a man and his company were accused of fraud is an example of the potential consequences.

A New York-based company was ordered to pay $596,700 for defrauding its clients. It is also prohibited from taking part in behaviors that do not adhere to certain aspects of the Commodity Futures Trading Commission and the Commodity Exchange Act. The company was accused of soliciting clients for at least $680,000 for off-exchange foreign currency accounts and misappropriating funds.

The illegal activity is said to have continued for more than five years starting in October 2013. The company asserted that it was experienced with forex and was profitable. This, however, was a misrepresentation. In addition, clients received false statements showing profitability when the trades were unsuccessful. The defendants took cash out of the accounts or paid for their personal and business costs with it. The company did not adhere to the rules by registering with the CFTC. The New York State attorney general also charged the owner with a scheme to defraud and grand larceny. He received a three-to-six-year prison sentence.

White-collar crime allegations can happen in many industries, but they are especially common in finance. People who are accused of fraud can face significant penalties if a conviction is obtained For people who find themselves accused of illegal activities, it is important to understand how to formulate a strong defense to avoid conviction or reach a plea agreement. A lawyer experienced in combating white-collar crime allegations may help with a defense.

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