Most people know what white-collar crime is, at least in general terms. The term refers to non-violent, financially-motivated offenses often committed by businesses or individuals in executive-level positions in the corporate world. Pink-collar crime is within the same realm, with a few key differences.
The term pink collar crime, originally coined by Professor Kathleen Daly of Griffith University in the late 1980s, refers to “low- to mid-level employees in historically female-dominated jobs—bookkeepers, secretaries, clerks—who steal money from their employers.” More modern definitions recognize that many jobs previously considered to be “pink-collar” can be done by an individual of any gender. The term pink collar crime may be used to refer to any criminal activity involving a mid-level employee who steals from the workplace.
Examples of Pink-Collar Crimes
Many pink-collar crimes involve accounting, office, or other positions in which money moves through the business. These professionals see the movement of money in the company, whether vendor payments going out or the CEO’s expense account. Consider some of the most common examples.
Embezzlement
A bookkeeper may be accused of diverting funds from the company’s accounts to their own account. It refers to any financial crime in which a person fraudulently appropriates money that is entrusted to them for their own benefit.
Fraud
Fraudulent activities could include creating fake customer accounts, invoices, or vendors to divert money from the business. A secretary may inflate invoices for actual vendors to steal funds.
Identity Theft
Identity theft could be a form of pink collar crime if an accountant opens credit cards or bank accounts using the business information for personal gain. This could include opening a credit card for the company but using it for personal needs.
Bookkeeping Fraud
Bookkeeping fraud involves hiding embezzled funds or manipulating financial records to conceal misappropriations of funds. The money seems to be associated with a different cost of operating the business.
Check Kiting
An accounting manager may write checks against insufficient funds. Their goal is to cover those costs with deposits from other accounts to hide the lack of funds. This may include using funds from the company to pay for personal expenses.
Larceny
Larceny refers to taking or carrying another person’s property with the intent to permanently deprive the owner of it. A person might take money from the business to use for their needs.
How Financial Crimes Are Investigated
If a company learns of the financial discrepancies, the first step for that organization might be to report the losses to the local police department, which would begin the investigation. The higher up in the management the losses go, though, the more challenging this could get – especially if the company is trying to protect its reputation as well as recover its funds, or if the company works with clients from around the country (or the globe).
Many pink-collar crimes are investigated by local and state law enforcement. The Federal Bureau of Investigations (FBI) will take over investigations when they are large-scale events crossing state lines (as in situations of significant corporate fraud, including accounting schemes) or when they involve a federally-insured banking institution.
What Are the Penalties for Pink-Collar Crimes?
When a person is charged with a pink-collar crime, they could face numerous consequences depending on the details of the case. This varies widely based on the scale of the theft, the number of people involved, and the laws in effect in the jurisdiction where the crime occurred.
Penalties commonly associated with these crimes will include:
- Fines: This may range from several thousand dollars or more, depending on the amount of money involved in the transactions.
- Imprisonment: It is possible for some convicted individuals to spend time in jail or prison, though the length of time is dependent on the severity and value of the fraud involved.
- Loss of licensing: Those who have specific credentials, such as accounting licenses, may lose those licenses as a result of a conviction.
- Restitution: The court may determine the individual must pay restitution to the victims. This may be done, for example, through financial repayment of the amount stolen.
- Community service: It is possible for a person to receive community service as part of a sentence, particularly a probation sentence.
Also notable, there could be civil penalties associated with these crimes. A company may seek legal action against the party that committed the crime, such as filing a lawsuit to recover the losses.
When Should I Call a Defense Lawyer?
In situations where you are facing potential charges for pink-collar or white-collar crimes of any type, do not wait to call a criminal defense attorney. Doing so is critical to minimizing the fallout from these cases. Note that it is not just the financial and prison implications that could impact your life but also the relationships and job opportunities that change due to a conviction.