Is Pension Fraud Considered a White Collar Crime?
The weak economy has put a strain on everyone, and some people have tried to turn this to their advantage by participating in pension fraud. Pension fraud is when brokers or financial advisors do not allocate invested money as they have promised. In many cases, the victims are retirees who are concerned that their retirement plans and investments will not be enough to support them during difficult economic times. Pension fraud can take many forms, and all of them are punishable by law.
How Does Pension Fraud Occur?
When a person hires a financial advisor or broker, he is doing so in good faith so that he can get the best return on his investment. However, there are some financial advisors and brokers who will take the money and use it to inflate their own profits. Pension fraud can occur when the broker takes a large amount of money from a client and invests it many times in order to earn a higher commission. Pension fraud also covers risky investments that prevent retirees from withdrawing their funds so that the broker can earn more money on the commission, and it includes equity indexed annuities, which are investments that are risky and do not allow retirees to withdraw their funds before the maturity date.
Is Pension Fraud a White Collar Crime?
Pension fraud is considered a white collar crime, and it allows the criminals to live lavish lifestyles. They promise that their clients’ investments will result in high returns, but they are trading or investing the funds in order to increase their own profits. In some cases, the money is not used for investments at all or is invested in companies that do not exist.
What Is the Punishment for Retirement Fraud?
If you are found guilty of pension fraud, you could serve time in prison. You may also face lawsuits from those who lost money because of your actions. You could lose your home and other properties that you purchased with the money that you unlawfully earned in order to repay those debts.
If you are being investigated for pension fraud, then you will need a lawyer who is familiar with the complex laws of white collar crimes. An experienced lawyer will be able to analyze your investment plans and actions to help you get the best outcome in court. He may even be able to prove that you made the investments in good faith.