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  • Essay / The History of Embezzlement - 1682

    In reality, the crime of embezzlement and white collar crime in general has a huge impact on the society around it. When an organization falls victim to fraudulent actions such as embezzlement, assuming the business does not close its doors, it must make up for lost profits. Unfortunately for the consumer, this usually means an increase in the prices of their products. If the above statement is not feasible, then the company must reduce working hours or, in severe cases, completely eliminate the workforce. Innocent employees could be unable to pay their bills, their loans and their credit scores could be ruined. In cases of stock fraud, investors may ultimately lose confidence in the stock system, meaning fewer financial flows circulating in markets directly impact businesses nationwide. One example is the Enron scandal following the embezzlement of an investor's money, which resulted in thousands of investors' retirement accounts being completely wiped out. The financial stress one experiences following an event like embezzlement is unimaginable. Innocent people are forced to completely abandon a somewhat comfortable lifestyle and future and re-evaluate their entire lifestyle. As can obviously be seen, these crimes directly affect employees, consumers, and families in many ways. (McGrath,