White Collar Crimes by Varun Singhal

Ans: Ponzi scam is also known as pyramid scam is a type of affinity scam in which the scammer would through emails and advertisements offer the people to earn huge profits only by investing a certain amount of money and they have to sit comfortably in their room. The scammers also give exciting offers like early bird offer that would be able to make more profits. After investing their money in such schemes,  people land up having nothing in their hand, as the scammer runs away with the money leaving behind and no clue of their existence so as to track them. The cases of ponzi scheme in India are as follow :  In November, 2018, Gaylen Rust of Utah was accused by the Government for running ponzi scheme and they generate huge wealth, like that if 25-40% per year,which is about 47 to 200 million of money. It was observed that more than 200 people had become a victim of this scheme.  In the same year,  when Gaylen ruth was found guilty, in the month of September, a person...

Ans:  Pump and Dump Scam: A company who owns a large amount in a low-priced stock, which is actually an illegitimate business, will target potential investors to persuade them to invest in the stock. As more people would invest, the price of the stock would enhance and when it arrives at its peak , the scammers would sell all the shares to achieve profit and run away, taking with him all your money. In 2015, when Rakesh Jhunjhunwala was said to have raised his wealth by purchasing 2,50,000 odd shares because of which the shares of the ‘Surana Solar’ experienced an 18% rise, but after the dump-sum scam was discovered, the prices were quashed. That is how a loophole in the system was also discovered.  The happening of such scams reveals that there is no proper system to check the authenticity of the information being supplied. After getting the benefit of such a  loophole, the Surana Solar made namesake deals easily with the investors that cause them great loss. 

Ans: Since there is no proper definition for white-collar crimes, yet governments must not neglect the socio-economic crimes which are known as white collar crimes.  Socio-economic offences are those that have an impact on the social and economic well-being of society.  White-collar crimes are crimes such as fraud, money laundering,  tax fraud , bribery, embezzlement, insider trading, and corruption. The IPC renders the punishment for certain economic offences such as criminal misappropriation, criminal breach of trust, receiving or dealing in stolen property, cheating, creating fraudulent deeds, concealment of property, forgery, falsification of accounts, sale of adulterated drugs , etc. Despite being peaceful, white collar crimes are significant offences with broad impacts. They have the potential to result in substantial financial losses, undermine public confidence in institutions, imbalance market competition, cause social inequality, and deteriorate economies.

Ans: Commonwealth Games is an international competition wherein the athletes from the Commonwealth Nations compete in several sports. It happens once a year & it is run by the Commonwealth Games Federation. Suresh Kalmadi, the Games’ planning committee chairman, performed this Commonwealth Games scam. He allegedly awarded the advantageous contract to the Swiss firm to install a TSR system for the Commonwealth Games at a very high cost, causing a loss of over ₹900 million to the exchequer as the Swiss Timings’ time equipment actually costs ₹95 crores and Suresh Kalmadi offered the contract of Rs 141 crore . The Central Vigilance Commission must be known about the CMW scam as well as the culprits were detained on charges of cheating, conspiracy, corruption, forging documents, etc. Hence, this is also a serious white-collar crime.

Ans: 2G Scam Case :  The 2G Scam included the fixed-price sale of 2G spectrum licences. Politicians and private personnel of the United Progressive Alliance coalition government in India (UPA) were allegedly associated in the sale or allocation of 122 2G spectrum licences, which sparked a political issue. Applicants who weren't even qualified received licences. It was an amalgamation of three cases, two registered by the CBI and one filed by the Enforcement Directorate. According to the CAG investigation, 2G licenses—or those for mobile networks' second generation—were distributed at irrelevant prices rather than through open and transparent bidding processes. A Raja was detained in 2011 on suspicion of cheating, falsification, and conspiracy but denied all charges, claiming that Prime Minister Manmohan Singh had granted of this decision. India's CAG published a report on their criminal activity in 2010. Additionally, because the offence was so heinous, the charge sheet was...

Ans:  Punjab National Bank Fraud Case: Nirav Modi's name revealed in the Punjab National Bank Fraud case as the 85th richest person in India. A few of the bank's representatives, according to the bank, collaborated with Modi and the firms associated with him to get guarantees or letters of undertaking from other international banks to help finance buyers' credit for the purpose of buying and selling diamonds.  A Letter of Undertaking (LOU) is a bank guarantee given by one bank to another bank and was given on behalf of the customer for repayment of the loan. Mostly, the LOU is used when the person imports anything from a person, in another country. Two bank employees issued Letters of Understanding to these companies falsely and unlawfully. Credit was then given to these companies based on these Letters. PNB asserted that the funds allegedly raised for the purpose of purchasing and selling diamonds were not really used for that reason. PNB disclosed information to the stock...