Criminal Law: Crimes Committed In Businesses

downloadDownload
  • Words 2004
  • Pages 4
Download PDF

Criminal Law

Crimes committed in businesses are often referred to as ‘white-collar crimes’ because often these crimes are committed by powerful individuals of the business world who hold considerable respect. These crimes include but are not limited to bribery, money laundering, fraud, forgery, impersonation, insider trading, etc. Such crimes are a punishable felony in most countries. Following are a few historical examples of such crimes committed from all the world over:

Bribery In The United States Of America:

‘Bribery is the act of giving or receiving something of value in exchange for some kind of influence or action in return, that the recipient would otherwise not offer.’ (Bribery. (2019, September 15). A bribe could be a range of things, from money to privileges, given in order to elicit an illegal or unethical favour. Bribery is regarded as a punishable offence in most countries, as does the United States of America. ‘The principal US law prohibiting bribery of foreign public officials is the Foreign Corrupt Practices Act (FCPA), 15 USC sections 78m, 78dd-1, 78dd-2, 78dd-3, 78ff, enacted in 1977. The principal domestic public bribery law is 18 USC section 201, enacted in 1962.’ (Authors Homer E Moyer Jr, Carlos de Miguel Perales and Per Hemmer, Kim, R. K., & Ning, S. (0AD). United States Anti-Corruption Regulation – Getting The Deal Through – GTDT. The FCPA prohibits US corporations and some foreign companies from committing the act of bribery. This law has been in place since 1977. Yet it has not stopped brazen individuals from committing bribery. Here are two such cases deemed as the biggest bribe cases in the history of USA.

Click to get a unique essay

Our writers can write you a new plagiarism-free essay on any topic

Siemens AG Bribery Scandal

Siemens AG, a German MNC found itself in the middle of one the most scandalous bribery cases ever seen. In 2008, the company was charged with paying out $16 million in bribe to Argentinian officials in order to secure a bid. The contract consisted of producing Argentinian identity cards, the cost of which was over $1 billion. Siemens AG got into trouble with FCPA as companies which do business onshore in the US fall under their law. (Mohr, A. (2019, July 25). The Biggest Bribe Cases In Business History). Siemens AG was fined for $450 million which happens to be the highest fine ever imposed by FCPA, not including the $350 million that Seimens AG had to pay in settlements gained in profits out of this deal. Siemens AG ended up paying a whopping $1.6 billion of total fines. Through further investigation, it came to attention that Seimens AG regularly used bribery and slush funds to secure contracts. They paid and approximated $1.4 billion in bribes to government officials across the globe. Linda Chatman Thomsen, the head of the S.E.C.’s enforcement division called the schemes “unprecedented in scale and geographic reach.” (Lichtblau, E., & Dougherty, C. (2008, December 15). Siemens to Pay $1.34 Billion in Fines). Prior to this scandal, Seimens AG was respected incorporation deemed to have proper anti-corruption controls in place. However, this scandal brought forward the truth. Siemens AG’s anti-corruption controls were ‘paper only’, they were not actually implemented or practiced.

Kellogg Brown And Root Bribery Case

Kellogg Brown and Root is an American engineering and construction company. The Texas-based company was a subsidiary of Halliburton. The company deals in providing designing services for liquefied natural gas facilities and construction services. KBR was charged with bribery in 2009, to which they pleaded guilty on all five counts. KBR was accused of paying out bribes to a total of $180 million to Nigerian officials in order to secure a construction contract for a liquefied natural gas plant to be constructed in Bonny Island. This contract was worth over $6 billion. (Mohr, A. (2019, July 25). The Biggest Bribe Cases In Business History). KBR’s then CEO Albert Stanley was found guilty of being involved in this case along with others, he was sentenced to seven years in violation of FCPA. Meanwhile, KBR was fined for $579 million (including the forfeited profits) by the FCPA. (French, L. (2015, March 6). A history of corporate bribery scandals). In the aftermath, KBR agreed to put compliance controls in place monitored by third parties.

Forgery In The United Kingdom

Forgery is faking official documents with the purpose of fraud, thus producing false documents. This could mean forging a signature or alteration of an existing official document without authorization. Usual examples of forgery could consist of: forging a signature on a check or stock certificate, producing fake passports or identification, fake property deeds or grants, a will, an art piece, it could even be a medicine prescription. (Montaldo, C. (2019, June 27). What Is Forgery?). Forgery is a punishable offence in UK where the accused can be fined or imprisoned to a maximum of ten years, or both, depending on the magnitude of the crime. ‘In England and Wales and Northern Ireland, forgery is an offence under section 1 of the Forgery and Counterfeiting Act 1981, which provides: A person is guilty of forgery if he makes a false instrument, with the intention that he or another shall use it to induce somebody to accept it as genuine, and by reason of so accepting it to do or not to do some act to his own or any other person’s prejudice.’ (Wikipedia. Forgery. (2019, September 16). Following are two such examples of forgery cases convicted in UK:

John Myatt: Art Forgery Fraud

Considered one of the biggest art forgery cases of the 20th century, this notorious case involved John Myatt forging around 200 paintings as originals over the period of a decade. He was good at making copies of original artists such as Picasso and Van Gogh and what was a means of amusement quickly became a source of income for Myatt when he found himself in the sole custody of his two children. He started selling his ‘genuine fakes’ by advertising. Myatt had an accomplice, John Drewe, in this fraud, who was a regular customer with Myatt when he sold ‘genuine fakes’. John Drewe was able to sell off Myatt fakes as original at huge profits and convinced Myatt into the scam. He even forged certificates of authenticity. It is believed that the total sum of profits made on the paintings amounts to a staggering €25 million. John Myatt was arrested after an investigation by the Scotland Yard in 1995. In 1999 Myatt was convicted for a year and Drewe for six years. (John Myatt. (2019, September 16). In his defence, Myatt claims in an interview that he did not realise until much later of the repercussions that selling fakes as original could have. Myatt went on to make money from his paintings legally and even got his own tv show where he paints celebrities in the style of a famous artist. (Matilda Battersby @matildbattersby. (2014, November 28). The talented John Myatt: Forger behind the ‘biggest art fraud of 20th).

Forgery Of Will And Fraud

Margaret Hampshire, a former judge, along with her husband forged the will of Martin Blanche to procure the possession of his cottages. Mrs. Hampshire produced a ‘will’ by Mr. Blanche to transfer his cottage to Ms. Burroughs, who was a relative of Mrs. Hampshire and co-owner of the adjoining cottage. Once the cottage was in possession of Ms. Burroughs, Mrs. Hampshire produced a letter claiming that Ms. Burroughs has given the cottages to Mrs. Hampshire. Hence, procuring the possession of both the cottages with the plan of making one big cottage. When investigated, Mrs. Hampshire admitted to forging Ms. Burroughs signature on the document. The couple were found guilty on two counts of forgery and jailed for six months. Mrs. Hampshire was also found guilty of forging documents to avoid inheritance tax. What is worse is that Mrs. Hampshire committed forgery while still a practicing judge. A perfect example of abuse of power.

‘False Pretenses’ In The United States Of America

False pretenses is described as ‘false representations concerning past or present facts that are made with the intent to defraud another’ by Merriam Webster. (False Pretenses Legal Definition. (n.d.)). There should be false representation of facts for false pretenses to take place. Examples of false pretense could be selling of fake jewellery as real, obtain property by defrauding original owner. False pretenses could be dealt as a felony or misdemeanor depending on the crime.

College Admissions Scandal

In March 2019 four athletic coaches were found guilty of taking bribes to give admission to students under false pretenses. The students were given admission, in spite of not being athletes, in top American universities. (Hills, D. (2019, March 13). Four soccer coaches indicted in college admissions scandal). This is an ongoing case and altogether 50 people have been charged till date, which includes some celebrity artists too. (Shamsian, J., & McLaughlin, K. (2019, September 24). Here’s the full list of people charged in the college admissions cheating scandal, and who has pleaded guilty so far). The scam also involved parents bribing officials to increase their children’s entrance test scores. A total of $25 million was paid in bribe. The athletic coaches found guilty were fired from their positions.

Police Officer Commits Murder Under False Pretenses

In January 2019, Gerald Goines, was found guilty of murdering two civilians after obtaining a ‘no-knock raid warrant under false pretenses. (Silverman, H., & Gast, P. (2019, August 24). Former Houston officer accused of lying faces murder charges after botched raid). The incident took place in Houston, Texas. Goines gained a raid warrant under the false pretense of having insider informant on the murdered victims that they were in possession of heroine. He later confessed of having no such informant. If proven guilty he could face capital charges.

Process Of Being Charged By Criminal Court In UAE

The first step is to file a complaint with the relevant police station and to have the incident recorded. The police record is made in the Arabic language. The victim is allowed to bring in witness to corroborate the victim’s story, the police records their statements as well. Next, the police contacts the accused and calls him/her to the police station to have their statements recorded, the accused is also allowed to bring in witnesses. Once all the statements are recorded, the police sends the case to the relevant departments. For example, if it is a cyber-crime it will be sent to the electronic crime department. There are levels of crimes committed: contraventions, misdemeanor and felony. Criminal proceedings can be complicated for a person who cannot speak Arabic, as the hearings take place in Arabic.

The case is then referred to public prosecution is a responsible prosecutor finds that a crime has occurred under the UAE Penal Code. The accused and the victim are then interviewed separately by the prosecutor, who then decides about the case and may call the accused to come before criminal court. Otherwise, the case is archived. (Abdullah, H. (n.d.). Criminal Law In The UAE: An Overview Of Procedures For Expats.)

References:

  1. (Bribery. (2019, September 15). Retrieved from https://en.wikipedia.org/wiki/Bribery).
  2. (Authors Homer E Moyer Jr, Carlos de Miguel Perales and Per Hemmer, Kim, R. K., & Ning, S. (0AD). United States Anti-Corruption Regulation – Getting The Deal Through – GTDT. Retrieved from https://gettingthedealthrough.com/area/2/jurisdiction/23/anti-corruption-regulation-2019-united-states/)
  3. Mohr, A. (2019, July 25). The Biggest Bribe Cases In Business History. Retrieved from https://www.investopedia.com/financial-edge/0512/the-biggest-bribe-cases-in-business-history.aspx.
  4. Lichtblau, E., & Dougherty, C. (2008, December 15). Siemens to Pay $1.34 Billion in Fines. Retrieved from https://www.nytimes.com/2008/12/16/business/worldbusiness/16siemens.html.
  5. Mohr, A. (2019, July 25). The Biggest Bribe Cases In Business History. Retrieved from https://www.investopedia.com/financial-edge/0512/the-biggest-bribe-cases-in-business-history.aspx.
  6. French, L. (2015, March 6). A history of corporate bribery scandals. Retrieved from https://www.worldfinance.com/strategy/a-history-of-bribery.
  7. Montaldo, C. (2019, June 27). What Is Forgery? Retrieved from https://www.thoughtco.com/the-crime-of-forgery-970864.
  8. John Myatt. (2019, September 16). Retrieved from https://en.wikipedia.org/wiki/John_Myatt.
  9. Matilda Battersby @matildbattersby. (2014, November 28). The talented John Myatt: Forger behind the ‘biggest art fraud of 20th. Retrieved from https://www.independent.co.uk/arts-entertainment/art/features/the-talented-john-myatt-forger-behind-the-biggest-art-fraud-of-20th-century-on-his-criminal-past-and-9889485.html.
  10. False Pretenses Legal Definition. (n.d.). Retrieved from https://www.merriam-webster.com/legal/falsepretenses
  11. Hills, D. (2019, March 13). Four soccer coaches indicted in college admissions scandal. Retrieved from https://www.prosoccerusa.com/mls/four-soccer-coaches-indicted-in-college-admissions-scandal/.
  12. Silverman, H., & Gast, P. (2019, August 24). Former Houston officer accused of lying faces murder charges after botched raid. Retrieved from https://edition.cnn.com/2019/08/23/us/houston-officers-charged-no-knock-raid/index.html.
  13. Abdullah, H. (n.d.). Criminal Law In The UAE: An Overview Of Procedures For Expats. Retrieved from https://www.tamimi.com/law-update-articles/an-overview-of-criminal-proceedings-in-dubai/.

image

We use cookies to give you the best experience possible. By continuing we’ll assume you board with our cookie policy.