financial crime

Question 1

embezzlement

Answer 1

using money for any other reason than what is stated.

• -A kind of fraud
• -Doesn’t have to be a loss

Ex: in Nevada, using business money to gamble and with gains, paying it all back. Still embezzlement because it wasn’t the original purpose

Question 2

Money laundering

Answer 2

• Disassociating criminal funds from final purchases
• Using proceeds of crimes and turning it into legitimate money

Ex: drug money

Question 3

3 stages of money laundering

Answer 3

1. place money (most likely to get caught)
2. Layer the money through a series of pointless transactions to make it difficult to trace the original money. (usually done through loaning and calling early and international transactions, and deals that are “too good to be true”
3. Integrate money back into economy as innocent (clean) money

Question 4

Punishments for money laundering

Answer 4

14 years in prison and unlimited fine

….if assisted, prison too or 5 years.