CONSUMER FRAUD

Occurs when consumers attempt to deceive businesses for their own gain.
- Involves intentional deception to derive an unfair economic advantage by an
individual or group over an organization

- deceptive practices that cause other party to suffer financial or other

losses.

Examples
Price Tag Switching- occurs when an a customer attempts to purchase
an item at a discounted price by tampering with the price tag.

Item switching

Lying for age discounts and etc.

Return policies misuse

Collusion an employee colludes with a supplier to arrange payment of

the supplier's invoices for work that has not been completed or goods
that have not been received. The employee is typically sufficiently senior or
trusted to authorize the payment of the invoice.

Guile - when the customer distract an employee from the fact that the
customer accidentally hit some displays and destroy it, by immediately
turning on the charm and launching into a fascinating story just to
escape from the incident and not be blamed by the business.

Financial Misconduct
Means Fraud, Gross Negligence or Intentional or Willful Misconduct that
contributes, directly or indirectly, to the company’s financial or operational
results.

Examples

Misstatements and other irregularities in company records, including the

intentional misstatement of the results of operations or financial wrongdoings.

Forgery or other alteration of company documents.

Fraud and other unlawful acts.

Insider Trading

You can purchase shares of stocks either through an initial public

offering (IPO) or through the open market (also referred to as the
secondary market). Shares sold through IPOs are offered for the first time to
the public by the company (primary market) whereby proceeds of the sale go
directly to the company

Not all the time

For example, if an insider sold 10,000 shares on Monday, June 12, he or she
would have to report the sale to the SEC by Wednesday, June 14. To deter
insider trading, insiders are prevented from buying and selling their company
stock within a six-month period, thereby encouraging insiders to buy stock
only when they feel the company will perform well over the long term.

Jeffrey Skilling/Enron Corporation

Jeffrey Skilling was involved in multiple white-collar crimes during his time
with Enron. One of those crimes included insider trading. Hiding the
company’s dire financial status, Skilling dumped $60 million worth of Enron
stock before he quit the company just before it got embroiled in a complicated
bankruptcy.
R. Foster Winans/The Wall Street Journal
Journalist and columnist Winans found himself facing the scrutiny of the
market watchdog when he gave information of his upcoming articles regarding
certain stocks to stockbrokers, earning $31,000 in the process.
Albert H. Wiggin/Chase National Bank
Wiggin was perhaps one of the first prolific cases of insider trading in the 20th
century. During the 1929 Wall Street market crash spiralling from the ‘Black
Thursday’ event, which later led to the Great Depression, Wiggin had short
calls on 40,000 shares of Chase National Bank. Wiggin was the head of the
bank and had a vested interest in running his own company into the ground.

Martha Stewart/ImClone Systems

Famous American businesswoman and TV personality Martha Stewart
received an illegal tip from her stockbroker regarding ImClone receiving some
bad news that would cause the stock prices to slump. Using the tip, Stewart
sold her stocks and came under the lens of the SEC.
Problems can become ethical issues as a result of changing societal values.