Which of the following is TRUE regarding prosecutions of white-collar criminals?

Which of the following is TRUE regarding prosecutions of white-collar criminals?
A . Only a small percentage of perpetrators are punished when an organization deals with a fraud case internally.
B. Most fraud cases are only handled internally and are not referred to law enforcement for prosecution
C. The primary reason organizations decline to prosecute fraud cases is a belief that their internal discipline methods are sufficient
D. When fraud cases are handled internally, an employee is more likely to be suspended or put on probation than to be terminated for their crime.

View Answer

Answer: B

Explanation:

Many organizations opt to deal with fraud cases internally, often for reasons such as fear of reputational damage, cost of prosecution, or concern about the length and complexity of legal processes. They may prefer to resolve the matter privately, through disciplinary actions like termination, demotion, or reprimand, rather than going through a public legal process. This is why most fraud cases are handled internally and not referred to law enforcement for prosecution.