Back to top

3 Ways Your Business Can Get Involved in Criminal Cases.

Businesses should prioritize legal issues the same way they focus on marketing and other key business operations. It is not…

3 Ways Your Business Can Get Involved in Criminal Cases

15th March 2024

Businesses should prioritize legal issues the same way they focus on marketing and other key business operations. It is not uncommon for businesses to find themselves in legal criminal cases with severe consequences. These issues often arise in many ways, with some businesses exposed more than others. Businesses can get entangled in criminal cases due to fraud, tax issues, intellectual property issues, and many other causes. Below are the three most common causes of criminal cases against businesses.

1. Fraudulent Activities

Cases of fraud pose a serious risk to businesses. The financial losses and legal repercussions associated with fraud can mark the end of a successful business. Business fraud often occurs in several ways. However, embezzlement is a common activity that leads to criminal cases.

Embezzlement essentially refers to misappropriating business funds or assets for personal gains. Your employee may divert business revenue into their accounts or use company resources inappropriately.

Most startups engage in fraudulent activities either by manipulating financial statements to impress creditors and investors. They can also forge signatures or use stolen personal information to access credit.

There’s also an increasing incidence of Ponzi schemes. Here, funds from new investors are used to pay serious investors to create an illusion of profitability within the business.Unfortunately, the scheme becomes unsustainable and collapses, resulting in significant financial losses for late investors and criminal charges preferred against the orchestrators.

2. Intellectual Property Issues

This occurs when businesses unlawfully use another company’s inventions without permission. This happens in various ways and often leads to criminal charges. IP theft can occur through:

Copyright infringement: Your business can face criminal charges if you reproduce or distribute copyrighted works. This includes music, software, or music without due authorization

Patent infringement: Businesses can also be charged criminally if they use or sell another company’s patent.

Selling fake products: Producing and distributing fake products is also a criminal offense.

Cyber theft: Stealing confidential information is also criminal. Businesses are also charged for failing to protect their clients.

IP theft exposes businesses to serious legal and reputation risk. Businesses should respect others’ IP rights and implement stringent cybersecurity measures to protect their clients’ details. Businesses facing criminal charges related to IP theft and other issues should engage Liberty Law, the best criminal lawyer in Edmonton, for expert guidance.

3. Tax Evasion

Businesses caught evading their tax requirements face serious criminal charges. This occurs when a business intentionally avoids paying taxes. Most businesses with tax evasion cases often underreport their income. They mostly conceal cash transactions or fail to report their sales to reduce tax liabilities.

Some businesses also intentionally overstate their deductions, either by expenses or falsely categorizing business expenses. Doing this minimizes the businesses’ tax obligations. Regardless of the strategy used, businesses caught are charged criminally.


The consequences of legal issues, especially associated with criminal charges, to businesses are severe. Besides hefty financial penalties, businesses also suffer from damaged reputations and potential imprisonment for those involved. Legal issues erode a business’s reputation and customer trust. They also disrupt normal business operations and divert the management’s attention from core business activities

Categories: Articles

Discover Our Awards.

See Awards

You Might Also Like