Professionals who own businesses, help run organizations or fill white-collar positions at companies may find themselves facing white-collar criminal charges. There are many different types of conduct that violate state or federal laws, most of which have to do with inappropriate management of finances or deception.
Anyone accused of misappropriating company assets could face embezzlement charges. Those trying to hide the origins of money or redistribute assets obtained through illegal activity could face accusations of money laundering. Fraud charges are another concern for those in the business sector.
Some people may face charges due to allegations that they may have been “cooking the books.” What exactly does it mean to cook the books, and what kind of charges may result?
What cooking the books involves
An individual accused of cooking the books has likely taken some creative allowances while maintaining, updating or sharing company financial records. They may also have openly misrepresented the situation while communicating with creditors, company shareholders or prospective investors.
Cooking the books can involve a range of different activities. Companies may try to hide or under-report debts. They may intentionally misrepresent the value of organizational assets. They may falsify information to make it look like the company should have significantly more revenue in the immediate future than is realistically likely. They could also fail to update accounts receivable to look like there are payments due soon when the organization has already received payment.
Someone accused of cooking the books may have intentionally omitted important inclusions in company account records or lied to investors or employees at financial institutions. Any attempt to overstate the company’s revenue or value or under-represent its financial obligations could ultimately result in claims that someone cooked the books.
What charges might follow?
Claims of cooking the books frequently lead to investment or accounting fraud charges. The goal is often to make the company look financially competitive so that people buy into the company or lend it money.
However, other types of fraud charges could also be possible. If the changes to records occurred to cover misconduct, people could potentially face money laundering or embezzlement charges.
Any white-collar criminal charge involving allegations of financial misconduct requires a careful defense strategy. Reviewing financial records and the exact allegations can be a good starting point for those who want to fight their charges.